Do you own an investment property in the Nashville area that you’d like to sell? When other people are living in your house, the selling process can become a bit more complicated. Let me share with you more about how to sell your house with tenants in the Nashville area!
As a landlord, there may come a day when you wish to sell your house. Even if you have tenants, it is your property and you may sell it if you wish. In some cases, you’ll be able to let your tenants know, and it won’t be an issue. However, you also don’t want to risk losing your tenants and being stuck with a vacant house while your house is on the market. That said, the tenants have rights, and you want to make sure you aren’t violating them. Below, we discuss common things that arise when you decide to sell your house with tenants in the Nashville market.
The Lease Situation
What does your lease situation look like? If you have a month to month lease, ending it shouldn’t be too difficult. You’ will need to provide a fair amount of notice to your tenant, typically 30-60 days. If you are in the midst of a fixed-term lease, things are a bit different. If you want to sell mid-lease, you’ll either need to sell the property to an investor who will honor the lease, or give your tenant some sort of incentive to move out. Some leases contain early-termination clauses that would allow you to end the lease early in certain situations. Remember, the tenant has rights too under the fair housing act, and if you violate those rights, you could find yourself penalized.
It’s Difficult To Sell Your House With Tenants
If you are considering selling your house with tenants in the open market, how do you let buyers in? This is a decision you will need to make before listing it. Before a house is shown, the tenants must be notified so they can leave before the showing. You will need to talk to the tenants and determine how much notice they need not be present during the showing and how long they need to stay away. Are two hours enough, eight, twenty-four? Once the appointment is made let’s hope the tenants have left the home in a presentable manner meaning the beds are made, dishes are put away and no clothes laying around the bathrooms and closets. On the other hand, some landlords in Nashville and surrounding areas will not allow any showings of their tenant-occupied properties until a signed contract is in hand. This is a fast turnoff for many buyers because they do not want to buy a house sight unseen. What happens if the buyer after seeing the house decides they do not want to purchase it? They have a right to break the contract if it was stated as a contingency and now you must start the whole process all over to sell your house with tenants.
If You Have Difficult Tenants
If your tenant has violated their lease, you should be able to evict them without an issue. That said, if your tenant is refusing to leave, the eviction process can become long, arduous, and expensive. Most landlords try to avoid dealing with evictions at all costs. By selling your house with tenants directly, you’ll be able to avoid the eviction process yourself and be able to move on from the property with cash in hand. Many direct buyers will simply take over the lease and business will go on as usual. If the tenants are in violation of the lease, the buyer will go through the eviction process as necessary. Plus, a direct sale will help you avoid having to list, market, and show the property, things would likely cause even more tension between you and your difficult tenants.
There are many reasons why a direct sale is beneficial for people who need to sell their house with tenants in the Nashville area. Investors are happy to take over a property that already has a tenant in place, especially when they are in good standing. It saves the seller time and money for advertising, marketing, showing the property, and possible vacancy causing lost revenue. They won’t have to bother screening tenants or running the background checks because those things have already been done. Even if there is a difficult tenant living in the home, an experienced investor won’t have trouble pursuing the eviction process if the tenant is in violation. They have likely had to do it before, and won’t be bothered by the process.
If you want to sell a house with tenants in the Nashville area, there are certain ways to go about doing it. Always make sure you are being fair to your tenants, and giving the proper amount of notice. Not only is it the law, but it is the right thing to do.
To get more information about how to sell your house with tenants in the Nashville TN area, send us a message or give us a call today!
David Wright is a licensed real estate agent in Tennessee and this article is not a solicitation to list your house.