I am trying to sell one of my rental properties. My options are to sell to the current tenants or list it through an agent. I told the current tenants about my intention to sell the house about a month ago. They said they were interested in buying from me, but have not come through yet with an offer. They basically have two options as I see it -- buy it from me, or move out at end of lease (Sep 30).
So here is my question...
Legally, I know I have the right to show the property to buyers (with 24 hrs notice), but do I need to incentivize tenants to allow the potential buyers in to view the place?
I believe that a potential buyer would be turned off by a messy house, a conflict with tenants upon entry, a wild barking dog, etc... I want to avoid conflict and have the showings go well.
If I were the tenant, I'd see potential buyers are competition, and the closer we get to the end of lease, the more motivated the landlord would become to sell. Seems to me like tenants have the stronger negotiating position here, and as the landlord, I would need to incentivize the tenants somehow. Any ideas on how to encourage my tenants to let buyers (i.e. competition) in to see the place?
I would say your best bet is to find them a place near their location and current rent and get them moved. You can also offer to pay a portion of the deposit as well.
This is a stick situation because tenants who are not cooperative can turn off many potential buyers.
If need be, work with an agent in your area and get the agent to run local rentals in the area that are close to what they are paying now.
Good Luck with that, and Pray!!
Account Closed Are you in a hurry to sell? If not I would give tenants the price you are going to market this property at after Sept 30th and let them see if they can put together financing and a downpayment for the property. They may want to purchase just not be qualified buyers.
You only get one chance at a first impression and I would't want a listing to sit on the market with tenants and being in a less ideal state, would turn off many buyers and just sit on the MLS and the longer that happens typically the more interest dwindles. After Sep 30th just get in there and clean the property out and make it shine, then list and sell!
Thanks for the advice @Nick Fitzpatrick and @Gerald Harris So far the tenants have been cooperative when working with my agent, but if they don't make an offer this month, I'll try to do everything I can to help them move out ASAP.
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