{"id":3654,"date":"2024-01-08T08:00:00","date_gmt":"2024-01-08T13:00:00","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=3654"},"modified":"2024-04-25T23:17:01","modified_gmt":"2024-04-26T03:17:01","slug":"selling-your-property-when-a-renter-still-lives-there-why-and-how","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/selling-your-property-when-a-renter-still-lives-there-why-and-how\/","title":{"rendered":"Selling Your Property When a Renter Still Lives There: Why and How?"},"content":{"rendered":"\n
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Can you sell a rental unit<\/a> \u201cout from under\u201d your renter? A loaded question, of course. Look at it this way. If your renters love where they live, it could be a win for all involved.<\/p>\n\n\n\n

You have a few things to consider as you plan for positive outcomes, of course. This is true whether you ultimately sell with the occupant in the unit, or wait instead until the unit is empty.<\/p>\n\n\n\n

Here are some scenarios \u2014 and how you might handle them with style and grace.<\/p>\n\n\n\n\n\n\n\n

Best-Case Scenario: Your Renter Is Awesome, and You\u2019re Not Pressed for Time<\/h2>\n\n\n\n
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Your renter could have a flexible attitude, and be glad you\u2019re offering the option to stay on in the unit, even after you sell. Yet even in the perfect scenario, be sure to review what you stated in the lease agreement. And without fail, understand renters\u2019 rights under your state and local laws. Be sure you\u2019re giving proper notice that you plan to sell the unit, and that remaining in the unit is among the renter\u2019s options.<\/p>\n\n\n\n

It\u2019s probably not a good idea to take past flexibility for granted. Someone who loved renting from you might not be thrilled to see you go. A key element in their life is changing, and they are not in control. This is a time when early and consistent communication is key. Ideally, you\u2019ll want to state that you\u2019re planning to sell when you take a renter on in the first place.<\/p>\n\n\n\n

A clause in the rental agreement memorializes this for both parties. The text can explain that the unit could be (or will be) sold, and that there could (or will) be times when the property will need to be shown. What does this mean, in practical terms? Reasonable showing hours could be 9-5, with at least 24 hours of advance notice \u2014 even if this isn\u2019t required by your state\u2019s law.<\/p>\n\n\n\n

Assuming it\u2019s all-systems-go for your current renter, you\u2019ll be seeking potential buyers who (a) want an investment property, and (b) are happy that a great renter is already on the scene.<\/p>\n\n\n\n

On the other hand, if it\u2019s a standalone home and the vast majority of likely buyers will be seeking a primary residence, a current renter will shrink your pool of possible buyers.<\/p>\n\n\n\n

All Other Scenarios: Should You Rethink Your Strategy?<\/h2>\n\n\n\n

Before giving up on the idea of selling an occupied home, consider tailoring your marketing to the house hacking<\/a> trend. Real estate continues to price out many hopeful buyers. You might have something that\u2019s perfect for them.<\/p>\n\n\n\n

After all, if you\u2019ve got a renter who pays full market value and who proves willing to work with an owner, that\u2019s a real asset. If there is no vacancy period, then your buyer gets an immediate return on the deal from Day One. Plus, the buyer will be freed from having to transfer the unit\u2019s accounts into their own name, or having to market the rental to other people.  <\/p>\n\n\n\n

A currently occupied property could also fit the bill for buyers who won\u2019t be ready to move in for some time. You could, in any case, advertise the place among both primary residences and investment property listings.<\/p>\n\n\n\n

But if none of these alternatives seem feasible, it\u2019s OK to rethink your strategy. In that case, you might opt to wait to sell. Waiting until the lease is up before going to an agent with your rental listing is the solution to a lot of open questions. Given that a currently happy renter\u2019s attitudes can change, and moving is stressful, the decision to wait until the renter is ready to move has a lot going for it.<\/p>\n\n\n\n

Meanwhile, remember to check your state\u2019s law. Note what it might say about a renter\u2019s rights to remain in the home throughout the duration of the lease, and related considerations.<\/p>\n\n\n\n

Stay on Good Terms With Your Renter. Because It\u2019s the Nice Thing to Do, and Because Online Reviews Happen<\/h2>\n\n\n\n

Back to the best case: If your renter is currently on a month-to-month rental agreement, then you can simply end the agreement at the end of the month, giving fair and proper notice. Great! But to finesse this in real life is typically more complicated.<\/p>\n\n\n\n

As the saying goes, kindness costs nothing. But it does reap rewards. So it doesn\u2019t hurt to:<\/p>\n\n\n\n