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Trulia Tampa, Other/Just Looking in Tampa, FL

How does one sell a home that still has sitting tenants?

Asked by Trulia Tampa, Tampa, FL Fri Dec 7, 2012

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12
With a Realtor, thats how!
1 vote Thank Flag Link Sat Dec 8, 2012
Trulia Tampa, there are two sides in answering your question. Selling a property occupied by tenants, is challenging. Yes, 24 hour notice is required to notify the tenants, this does not mean that the tenants will be cooperative, that the interior will be picked up, that the tenants will chatter to the prospective buyer about issues that they have had with the landlord.

Be sure that the lease contains to allow showings if the house is on the market. That said, try and be considerate of the tenants and their enjoyment of the property. You can estabish showing days/times that allows both the tenants and buyer's agent to plan appointments.

There will always be an enthusiastic agent that tries to access the property without adequate notice.

Here are some down sides of selling tenant occupied properties. Tenant stops paying rent and new owner has to trigger eviction process. The real estate sign increases the wrong kind of foot traffic, the electric meter is stolen, the tenant's car is broken into, the air conditioning unit is stripped out. The tenant has "family members" move into the house and discourage any showings.

Know your property, your tenants and neighborhood.

Best regards,

Lynn Brock
Brock Realty Inc.
941.313.1234
http://www.brockrealty-inc.com

If you'd like to search the MLS like an agent in real time, you can visit our website and sign up for a free Listing Book account. You will be able to change the search criteria to suit yourself and received morning reports regarding new listings, price changes and recent pendings.
0 votes Thank Flag Link Tue Dec 11, 2012
Most of my investors love homes that have tenants already in them if tenant history is available. Obviously, cooperation of the tenant would be most crucial to this situation.
0 votes Thank Flag Link Mon Dec 10, 2012
....with the cooperation of the tenants.

Good luck and best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
Web Reference: http://www.FeenickHomes.com
0 votes Thank Flag Link Mon Dec 10, 2012
I have investors looking for properties that are already tenant occupied. As long as the tenant is willing to cooperate with showings, it is quite easy to sell a property that way. We also have a full service property management company so if you do feel the need to keep the tenants and not deal with the headaches of being a landlord, we can assist you with that as well. Feel free to contact me at 813-810-7454 and I will be happy to discuss the details. Thanks and best of luck to you!
0 votes Thank Flag Link Mon Dec 10, 2012
Some very good answers and perspectives are listed, and there are a variety of strategies. Having a cooperative tenant is essential, so communicating with them on what their rights are, and finding out their wants and needs are is essential. Things like having 24 hour notice before any showings should be emphasized. Also, talking with them about the property condition for anything that is not working right would be advisable, so it can be fixed or disclosed....they will be letting people that look at the house know.

If on a lease and the tenants want to stay, then your "pool" of potential buyers is limited to investors, or those with time to wait for the lease to expire. In some instances that is to your benefit, just be sure to disclose the lease terms to prospective buyers.

Price it right for investors, hire a Realtor to help interface with the tenants and market where investors are looking!
0 votes Thank Flag Link Mon Dec 10, 2012
The best way to sell a home with existing tenants is to engage your tenants in a conversation. If it is near the beginning of their lease don't expect them to be too open to the idea but ones that are closer to the end should be easier. Ask if there is any interest in moving upon sale with an incentive. Have them sign anything they agree to in writing. If they don't seem to be open to the idea of people coming through - have them meet with your realtor and work out an amicable showing arrangement. If they are hostile then use their agreement for reasonable access in the lease. If the landlord is not willing to push these items for fear of losing their tenant then it may not be the right time to sell and it should be after the tenants vacate. If you are leasing and selling at the same time - give lower rent incentives to have them sign a move-out clause.
0 votes Thank Flag Link Sat Dec 8, 2012
Agree with the rest:

1. Hire a great Realtor
2. Most leases have a clause that says the landlord can enter with 24 hours notice
3. Offer them a discounted rent for being cooperative during the sale process
4. The lease superceeds the sale so if a tenant is renting until 6/2013 - and it sells prior to that, the new owner cannot force the tenant out until 6/2013.
0 votes Thank Flag Link Sat Dec 8, 2012
The best way is to advertise to Investors. I always tell my property owners that we are going to sell the lease along with the property. Professional investors are a smart group and they understand the hassle to tenants that have a lease.

Telling tenants they have to move is a serious and sometimes fatal blow to the property's value.

If the tenants are in a "holdover" or what is called month to month have them execute a new 1 yr lease.
Make the lease available to the potential buyer so the buyer can do an ROI first, before using anymore time of yours, your agents, the tenants, or his/her own.

Most tenants want to stay where they are because moving is a serious hassle.

NOTE: All deposits (Security/Pets, Etc.) are transferred 100% to the new owner. Rents collected for the month of closing are prorated a due to the buyer as of the date of closing.

Good Luck

J.D. "Dan" Weisenburger
Broker-Asssociate
I On Real Estate and Investments, LLC
0 votes Thank Flag Link Fri Dec 7, 2012
Having a tenant in the home is often an incentive for an investor to buy as there would be no lost time and other expense necessary to get a tenant in the home.. Your agent can list the home as income property as well as residential property. The income property listing would specify the expiration date of the lease and the investor would agree to honor it. The investor could even commit to not raising the rent at the time of leas renewal, a benefit not necessarily offered by the current owner.
0 votes Thank Flag Link Fri Dec 7, 2012
Offering incentives to the tenant would be a great start. If a bank offers cash for keys and other incentives, why not a landlord? If you cannot wait until the tenants lease is up before selling, offer an exit bonus if they agree to reasonable showings, keep the home clean, etc.
0 votes Thank Flag Link Fri Dec 7, 2012
Usually the lease says you can show the house with reasonable notice. If the lease isn't up anytime soon the might have to wait until its up and notify buyers of when it's up.
0 votes Thank Flag Link Fri Dec 7, 2012
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