Have you decided that you are tired of being a landlord and would like to sell your rental property? If you currently have tenants living in the home and you're not sure what to do, but you know you want to retire from the role of landlord, this article is for you. We are here to walk you through the process and the steps you need to take.
Wait for the Contract to Expire
The problem with wanting to sell a rental property with current tenants is that they may be legally bound to stay in the home. If you stated specifically in the contract that you can evict them if selling the home, then you can sell it without any problems and they are forced to move out. If the contract does not say that, then you may be stuck waiting it out until their contract is up. Here are the pros and cons of holding on to the property with tenants for a little bit longer.
Pros
- Repairs/Renovations - If you have a good relationship with your tenants, then you may be able to go in the home and see what repairs will need to be done to sell the place. If some things need to be done you can offer a rent discount if they make some of these minor fixes. Maybe they could paint some of the walls or replace the old flooring.
- Pays Down the Mortgage - If your tenants are still paying down the mortgage for you, that is more money you can cash in on once the property sells.
Cons
- You Are Still the ‘Landlord’ - If you are legally bound to the contract, then it looks like you will be stuck playing the role of landlord until the contract is up.
- Sell Your Rental with the Tenants - There is a chance that if you put your property up for sale your current tenants can get the hint and may voluntarily move out. They may ask you if they can just break the contract and move out early. If they want to stay in the home and are stubborn, then there will be some pros and some cons to selling the property.
Sell with Tenants in the Home
Pros
An investor may want to purchase the property - If you are able to find an interested buyer who will use the property as an investment, then this may be a golden opportunity for them as they will already have a renter once they purchase the home.
Cons
If your tenants are stubborn, this can make it really difficult to show the property. Your tenants may be a pain and not allow anyone to come to walk through the house. If someone does come to see the home, you won’t be able to guarantee the condition the home. This can make the selling process extra difficult.
Sell to a Cash Buyer
A cash buyer will purchase your property even if you have tenants living in it. They will purchase the home in any condition with cash. This is especially a huge benefit if your tenants have destroyed the home.
Pros
- Purchase as is
- Pay with cash
- Sold in 7 days
- Purchase with tenants
Cons
- Angry Tenants - There really aren't any cons involved when you sell your property with tenants to a cash buyer. A cash buyer is an investor who will purchase any home as is, and they are willing to take on your disobedient renters.
The process only takes seven days once you accept the offer. Because cash buyers have the funds already in hand, you will not have to wait for the buyer to get approval from the bank. It is fast and simple. You can get out of your rental property as quick as you would like.
Here at Enlight Homebuyers, we will purchase your rental property. Feel free to call us today at 801-939-0123 about any questions you may have. We look forward to hearing from you!
801-939-0123 