The other problem which you raised in your question is whether the tenants would negatively impact price. In my experience, tenant occupied property NEVER shows as well as a home that is owner occupied or has been staged. The reason is obvious... tenants have no vested interest in helping. In fact, tenants are often angry that the home they are renting is being intruded upon, and seem to go out of their way to NOT put the home in the condition you would as a homeowner. If you don't believe me, go on a tour of condos with tenants in them (there will be some listed for rent) and see how they show. Again, you might be able to exchange cooperation for free rent but if you do, don't pay it all up front.
My advice is to meet with your tenants, explore their intentions (maybe they would be happy to leave if the option presented itself) and look at the condo quietly assessing how it shows. Then make a decision. If they don't have any desire to move out before next September and/or if the presentation is less than optional, you might consider waiting. Once empty, clean it up, stage it and list.
Best of luck,
Tenants do negatively impact the price, there is just no getting around it. It happens in 2 ways:
1) Quality - In most cases, a property with tenants is not shown in its best light. In the same rationale that staging a property with furniture and artwork can enhance a property's sale value and speed of sale, the tenants will do the opposite.
2) Time - It is more difficult to allow showings with tenants. If you were living there, as the seller, you would (probably) be as acomodating (sic) as possible. You have a stake in the sale. The tenants do not have any real motivation to be helpful. It is harder to get buyers in the property and, thus, slow down the sale.
If your property is going to be marketed at a low price to attract investors, tenants are no problem. In fact, they will be a bonus to an investor. But you will need to sell at a lower amount if you want to attract these buyers.
I hope this helps.
And, no, I'm not worried about fraud. Make it $25 a card in a slow market, for Goodness' sakes!
The alternative is to give them a big cut in the rent, and they'll still not have any incentive to perform on a daily basis!
I work with tenants and landlords on a daily basis for my company and have sold properties with this current situation before. Honestly, it all comes down to your relationship with the tenants. If you and the broker you hire are up front and cordial and a strong landlord/tenant relationship is already in place then you wonâ€™t have a problem.
However, if you have a strenuous relationship with the tenants or theyâ€™ve been known to complain it might not work out so well. If you do decided to sell, with tenants still occupying the condo, then the best solution is to make sure the agent you hire always accompanies buyerâ€™s agents on showings. Otherwise tenants wonâ€™t leave because they are uncomfortable with strange people wandering around.
Also reiterate to the tenants that they are not being forced out and that the terms of their lease will be honored. Also selling in May doesnâ€™t look like it will be a problem for Charlestown. I just ran some numbers and the average days on market for condos sold in Charlestown is 115 days which would put your closing somewhere in late August if you list in the second week of May. Of course, this all assumes you price the property correctly.
Any questions feel free to email or call.
Hope this Helps,
Are tenants willing to comply with showing NOT decline
Confer with lease agreement of terms sale and show condo.
National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
From a selling stand point, it isn't the home's value that provides the greatest concern but th accessability of the property. It is normally difficult getting the tenant's permission to show the property as it creates a huge inconvenience for them.
Some landlords are able to enjoy some relief from this problem by offering their tenants a slight discount of their monthly rent for their cooperation and willingness to be inconvenienced on occasion. This can result in a win-win situation and help the agents show the property in its best light.
The Eckler Team
If you decide to sell, I would recommend just being forthright with your tenants and let them know that you will be showing the place. You might want to consider picking a day or two each week to do set showings so that their lives are not continuously disrupted. Give them enough notice.
The other piece of this is that a buyer will have to be a landlord until Sept. 2010 so you may have a more limited pool of buyers i.e. investors.