June 2021

This is usually the first question that arises when a landlord wants to sell. The simple answer is yes, you can sell a property with a tenant still living in it. In fact, most states’ laws give tenants the right to remain in a rental property after a sale until the lease or rental agreement expires. However, just because you can sell with a tenant doesn’t necessarily mean you should.   Should I Sell My Property with a Tenant Living in It? Before you put your property on the market, you’ll want to consider the pros and cons of selling while a tenant is still living in it. In some situations, having the tenant remain during and after the sale might work out perfectly. But without a crystal ball, the best you can do is weigh the pros and cons of selling your particular property with a tenant in place.   The Pros and Cons of Selling a tenant-occupied Property You’ll want to consider the following factors when evaluating whether selling with a tenant in place is a good idea. The terms of the tenancy. If the tenant is month-to-month, then all that you or a new buyer would need to do to end the tenancy is to give the amount of notice required under state law. If the property is in a rent-controlled area, however, you’ll want to check the applicable laws to make sure that the new buyers could end the rental agreement. Talk with your real estate agent to discuss if it makes sense to leave the decision to keep a month-to-month tenant to the buyer or terminate the tenancy before the sale closes. If the tenant has a lease, then you’ll want to consider how much time is left in the lease term. A long-term tenant might attract some buyers, such as investors, but turn off many buyers who plan to live in the property themselves.   The pool of potential buyers. Many real estate investors are happy to pick up a property with an existing tenant who is up to date with rent and has a lease or rental agreement in place. If the tenant’s lease will expire shortly after the sale closes, or if the tenant is month-to-month, then the property might also appeal to buyers who want to reside in the property themselves but cannot move in immediately (due to having to sell their current house or having to move, for example), or who don’t mind waiting a bit until they can move in. However, if you have a tenant in a single-family house that is most likely going to be purchased by a family hoping to move in quickly, having a tenant will probably reduce the number of potential buyers.   The type of property. If the property is in a complex with a lot of renters or is in an area with a lot of renters, such as a university town, it’s likely there’s a pool of investment-oriented potential buyers who won’t mind a current tenant. Also, examine the market price of the property. Most of the time, high-priced properties will be purchased by people who plan to live in them—and who aren’t looking to make money off of using the property as a rental. Few buyers in this category will want to take on a high monthly mortgage bill while waiting for a low-rent-paying tenant’s lease to expire. Also keep in mind that different investors will expect certain types of properties to have better returns on investment than others—put yourself in an investor’s shoes and run some numbers on your property.   The tenant and state of the tenancy. Personal characteristics of your tenant will come into play when selling. A tenant who doesn’t keep up with housekeeping, isn’t responsive to communication, or is just generally difficult will only hinder your selling efforts. On the other hand, a tenant who is neat, clean, responds to communications (such as requests for showings), and who is willing to assist can be an asset. Also, keep in mind the financial side: A current tenant who owes money or is paying below-market rent is likely to be a headache that few buyers want to take on.   What to Do When Having a Current Tenant Would Hurt Your Chances of Selling Once you’ve examined the pros and cons, what are your options if you decide that selling without a tenant is the better option? If the tenant is a month-to-month tenant, you’re in luck—simply end the tenancy by giving the tenant the notice required by state law. If you’re in a rent-controlled area, check the law to make sure that selling the property is a valid reason (just cause) for ending the tenancy. If your tenant has a long-term lease, ending the tenancy might not be so easy. Your best bet probably is to attempt to negotiate with the tenant. Offering money in return for the tenant’s agreement to modify the lease and move out early is a common approach. If the tenant accepts the deal, you can either have the tenant clear out in time to completely clean and perhaps stage the property while it’s on the market, or you can advertise that the property will be “vacant upon closing.” Negotiating an early move-out with the tenant could be a bit risky, however. If the tenant decides to ignore the renegotiated terms and remains in the property beyond the closing, the new owner can be put in the situation of having to evict the tenant. The new owner could then hold you legally responsible for all costs associated with the eviction. If the timing works, or if you cannot come to some sort of arrangement with the tenant, you might want to wait until the tenant’s lease is up before you put the place on the market. Notify the tenant in the manner specified in the lease that you are planning to sell and will not be renewing the lease.   Marketing

The real estate market is experiencing low mortgage interest rates right now which has triggered real estate buyers to jump on new opportunities! If you are ready to sell your house, do not let the virus stop you!   If you want to sell your home these are the 10 steps to a safe home showing should be follow: Confirm that neither the seller or the buyer has any symptoms of illness or COVID-19. Showing blocks should be offered in showing instructions. All parties should wear a cloth face covering or mask and wash hands to follow the CDC recommendations. Ask the Seller to open all doors and cabinets in spaces that should be seen by Buyers. Post signage on door: 1. Wait to enter until invited. 2. Do not touch surfaces or use bathrooms. Kindly announce required safety precautions everyone must observe during the showing block. Remind people to wait outside and remain at least 6 feet apart. Give each group a brief tour and remind everyone to stay 6 feet apart. Repeat this process with each group for the entire block of showings. After last group leaves, home seller must disinfect all doorknobs, surfaces, and railing.   You’ll need to take extra precautions during buyer visits or open houses. You’ll need to price your home just right — and accept that you may not get top dollar for it.   For sellers who still have a pool of potential buyers, most, if not all, will be viewing your home virtually. Because of this, technology troubles or any lack of preparation can also hinder your sale. Chances are sellers could be responsible for taking photos and virtual tours of their homes during social distancing. This could pose a problem for those who lack professional equipment or basic photography skills, including knowledge of lighting techniques and proper angles. All of this can have a negative impact on how house hunters view your home – and the virtual view is all some sellers will have to be able to provide. The fastest way to sell your house during the pandemic is directly sell your house to the Cash Buyers NY and do not worry about the open house because its too risky to have strangers from different household, different cities coming into your home wandering about. You do not need to do an open house anymore. We will take care of everything you don’t need to worry about those things. We will make sure that we provide you best service.