monopolyAt some point in our real estate businesses the need to sell off one or more of our properties becomes necessary for a variety of reasons like, raising equity for another purchase, 1031 exchange to a bigger property, or reducing your portfolio.  The timing in those types of sales don’t always coincide with an existing lease we may have with a tenant. Therefore, there is sometimes a need to sell with them still renting the property.

Some landlords are leery of this anyway because they are afraid of losing the tenant and the property doesn’t sell, leaving them holding an empty property that now is costing instead of making money.  But for the landlords that do approach this selling methods there are still many things to consider and be considerate of doing them.

  • If listing with a realtor or having a realtor show the property; ensure they understand there is someone living there and schedule showings with them.
  • Be reasonable with expectations of the tenant; group showings to a certain day of the week or time of day. Don’t expect your tenant to be able to vacate for a showing on a moment’s notice.
  • If installing a lock box; do so in an inconspicuous area like the back door.
  • Make arrangements with the tenant to keep the property clean, mowed while your showing. Maybe you can even offer an incentive for them doing so, like money off next month’s rent.
  • Put the tenant at ease. When they first hear you are selling the house in their mind they hear that they are losing their home.  Let them know that the lease will be honored by whomever owns the home and that cannot be changed for that lease period.

These five points should only get you thinking of how to delicately and effectively handle your existing tenants while selling your property.  I am quite sure there are many more to consider.  To also help get this creativity flowing and to give you another example of what not to do read this article from a tenant experiencing a bad landlord in this process.  Article: Home Owner Selling Where I Rent

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