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.
Brock Realty Inc.
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.
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!
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.
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.
J.D. "Dan" Weisenburger
I On Real Estate and Investments, LLC