It’s possible and legal to have your rental sold while tenants are living in it, and if you are a Gilbert, AZ landlord who has tenants in a house that’s for sale, you should do what you can to maximize the home value.
Buying Occupied vs. Vacant
Most investors buy a house that is vacant. It remains vacant for a few months while the closing date is scheduled and the buyers get their financing in order. There’s also the time that it takes to complete and process an appraisal. As the owner of the property, you don’t make any money until the sale closes. If you are selling a vacant home, you are paying your mortgage and not getting any rental income, so the wait for your closing date can seem very long and very expensive. Sellers in this position often feel like they need to lower the price of their home in order to sell it quickly.
Financial Incentives for Tenants
When your property is on the market and you have a tenant in it, you’re still collecting rental income every month. If you’ve got a high quality tenant, you can also benefit from their willingness to keep the house clean and cooperate with showings. Consider offering your tenants a financial incentive so they will be willing to let potential buyers see the property. If you sell to someone who plans to occupy the property, you can also offer your tenants a financial incentive to end their lease early. Some buyers might be investors who are more than happy to buy a rental property with a tenant already in place. Negotiating and communicating with both tenants and potential buyers can help keep the process efficient and respectful to all parties.
Selling your home with a tenant occupying it is legal and can often be cost effective for you. There’s no need to wait until you have a vacant property. As long as you have a tenant who is willing to work with you and you are willing to compensate the tenant, selling an occupied home is beneficial to you and your buyer.
Contact Mark Brower Properties if you have questions about selling your home while your tenants are still living there.