Tel Aviv, Israel · Member since 2014 · 53 posts · 10 votes
Hey Guys and Girls.
I seem to be facing a problem which I'm not really sure how to solve yet.
I own 2 different properties and have decided I want to sell them both. by asking my PM company they stated that both of the apartments have a few solid months until their tenant leases expire, so we are currently "unable" to show the properties for the prospective sellers.
Although I do understand this problem, I would like to proceed to other investments and do wonder what can I do to speed up this process.
If you have some ideas about it, they would be gladly welcomed.
I've been shopping for places that have tenants and from what I have experienced sellers usually require an accepted offer before they show the property. This way at least they are in talks with a buyer befor worrying the tenants. Then it's up to the seller to figure out the leases. Buyers can assume the lease or request tenants gone by close. We offered on one property and the seller had issues with tenants not wanting to leave and requesting $10,000 to end their lease 3 months early. But other tenants might want out anyway.
You can certainly show the house if the tenant gives you permission to do so. There is, most likely, a clause in the lease which gives you the ability to enter (show) the house without the tenant's approval if you give them proper notice. It is not often a good idea to show a house to a prospective tenant if the current tenant is a poor housekeeper or is hostile in any way; however, if you are showing to a potential buyer and the buyer is an experienced landlord the buyer will probably not mind. Consider what might happen if the tenant learns you are attempting to sell the house. Might that complicate the tenancy? Is it worth risking those complications?
It is your property you can do what you want with it, within the law of course. Check your landlord-tenant law and see how much notice you have to give the tenants in order to enter the unit. That info is probably or should be in the lease. After you give them the required notice then you can show it on that day. I believe a common number is 24- 48 hour notice.
I've been shopping for places that have tenants and from what I have experienced sellers usually require an accepted offer before they show the property. This way at least they are in talks with a buyer befor worrying the tenants. Then it's up to the seller to figure out the leases. Buyers can assume the lease or request tenants gone by close. We offered on one property and the seller had issues with tenants not wanting to leave and requesting $10,000 to end their lease 3 months early. But other tenants might want out anyway.
Hello and welcome to BP! Your typical lease should allow you to show the unit at any time to a prospective buyer at any time with some notice of some kind. Just call the tenant and get their permission. Good luck!
Does you PM company give you regular updates on the inside conditions of the home? When was the last time you personally walked through?
It just strikes me that a PM company would tell you this. It is perfectly normal to walk through a home during a pending sale, even with years left on the leases. At least in WA state where I am from, this is the case. I would check to make sure your PM company isn't trying to hide something from you. Every lease I've even seen has a clause for this.