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Writer's pictureBrooke Hallock

Can I Sell My Tenant-Occupied Property?



The short answer? Yes!


Maybe you purchased a home as a primary residence but had to move away (for one reason or another) and you decided to turn your home into a rental property? Or maybe you’re an experienced landlord and have owned rental properties before? Or maybe you’re a seasoned investor who already knows about the challenges that come with selling a tenant-occupied property? Either way, the time has come for you to sell! So what should you know?


You can sell a property that is leased out to tenants. In most cases, the new owner must take over and honor the lease. That is the good news! You don’t have to wait until the lease is up and for the tenants to vacate in order to sell…


Days on Market


When selling a rental property, as a general rule, you should expect your property to sit on the market a bit longer. Most buyers would like to occupy the home they purchase. Most buyers are not investors. You’re naturally going to get fewer “eyes” on your property because you have a smaller pool of potential buyers to choose from. As a result, your property could sit on the market for longer than usual.


Showings


It is quite a bit more difficult to show the property to potential buyers when tenants are there. Sometimes, they can be difficult to work with. Other times, it is simply impractical to work around the tenant’s schedule. If your property is difficult to show to buyers, they may simply move on to other properties that are easier to view. Additionally, you have no control over how the tenant will present the property. They will likely just have their belongings laid about like a normal day! They have no reason to keep the house in the best and cleanest shape possible for buyer showings. Many tenants may even be annoyed or frustrated with multiple buyers invading their space!


Repairs and Maintenance


We all know that no one will treat your home as good as you will! To a renter, your home is simply a place to live. They don’t necessarily have the pride of home ownership and don’t have a great incentive to give your property extra care and attention like you might do if you lived there. In addition, repairs and maintenance are to be expected over time anyways. The weather and environment can take a toll on your property. So whether the tenant is still occupying the property when you sell, or if you wait until they vacate, you can typically expect to invest a significant amount of money in order to prepare your home for sale.



All of these things combined make it quite a bit more difficult to sell a tenant-occupied property. You will be doing yourself a favor if you properly set your own expectations when you get ready to sell! It is safe to assume that it will take a bit longer to sell, it can be difficult to show and market your property, and you will most likely have to invest some money into repairs and maintenance.


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