Aaccept new tenant while house is selling?

Question

So I had a buyer and his financing allegedly fell through. Left me holding two vacant units I gave that I gave notice to and moved on before deal fell apart, now thanks to novice buyer I'm left holding the bag.

I have a new buyer but also a new prospective tenant ready to move in Saturday. If sale goes through the tenant would have to move out by end of March. Notice would need to be given a week after moving in.

If the sale falls apart and I let this tenant slip away under assumption that deal will close I'll really be mad. On the other hand, the appraisal will occur after they move into the apartment just days before I'd have to give notice anyway. Should I just cancel the holding deposit for tenant and risk more vacancy if sale falls through again or move forward with them just in case?

Account Closed · Answer

You seem conflicted in what your goals are. If you want to sell, then SELL IT. Don't complicate matters. If you want to rent it the RENT it. A man of two minds loses one. I smell a lawsuit brewing on misrepresentation to either the buyer or the renter. You should be careful.

Nghi Le · Answer

It sounds like you're bashing the buyer for the sale falling apart and leaving you in this situation.  I've learned that if you take responsibility instead of blaming others, you often get farther in life.  Take ownership of your business.  For example, if a contractor steals my money, it's my fault for not vetting him well enough and paying him before he has done any work.

What you can do to prevent this in the future is have the buyer go through a pre-approval process with your own trusted lender once you accept the offer.  Or at a minimum have your agent call the buyer's lender to really assess how strong the buyer's pre-approval is.

Putting a tenant in the property might cause complications with the buyer's lender as well.  Or it may delay or put the sale at risk, especially if you accidentally find a professional tenant that you have to evict.

Ned J. · Answer

So you want to stick a tenant in there for a month or 2 "just in case" the new buyer bails? Sounds like a horrible idea to me....

If your plan is to sell it, then don't complicate it by trying to save a few bucks by screwing a new tenant.... yes having a vacancy cost $$, but screwing someone by letting them move in with the full knowledge that you may very well terminate occupancy almost immediately is not cool in my book....but to each his own.....

Jimmy Dudley · Answer

You should be mad at your agent. Part of being the sellers agent is helping the client evaluate offers. As far as what to do now, empty it and sell it. Most investors don't want to inherit tenants.

Jack B. · Answer

You seem conflicted in what your goals are. If you want to sell, then SELL IT. Don't complicate matters. If you want to rent it the RENT it. A man of two minds loses one. I smell a lawsuit brewing on misrepresentation to either the buyer or the renter. You should be careful.

Ummm...I'm not conflicted over renting or selling. Read my post again. I clearly spelled out I had a buyer back out due to financing leaving me with vacant units as a result, due to my giving notice to vacate as a result of first deal. I have new prospective tenants since then. I want to rent to them in case the new buyers financing falls through so that I'm not left holding the bag again as there is no guarantee the deal will close. There is no possibility of a lawsuit here. Again, as I noted, I would give tenants notice to vacate before it closes. It seems like you read my post but didn't really comprehend it. At all...

Account Closed · Answer

Or perhaps you haven't read the Landlord Tenant Laws of Seattle/King Co. I have. I used to have rentals in Seattle. I left because of the new laws. Just sayin' . . .

Anna Buffkin · Answer

How about option #3:

Is the new buyer interested in renting the place from you while he waits for the sell to finalize?

My husband drove almost 2 hours one way to work while we waited on the sell to finalize on our new home when he relocated for work.  We may have jumped at the idea of renting it while we waited if it had been offered.

Jack B. · Answer

They apply to Seattle, my house is not in Seattle....Still your original reply wasn't about landlord tenant laws, you clearly didn't understand the post....thanks anyways for your advice.

Aaccept new tenant while house is selling?

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