First time seller - what to do with tenants?

Question

Hello!

I was a first-time home buyer and accidental landlord.  I bought my first ever home/condo and after about 4 years of living there I accepted an assignment overseas.  I have since been renting out the condo for the past several years but I am now ready to sell it.

My question is, since the condo is currently rented out, what is the best approach or etiquette for selling. Do I need to let my tenants know that I am selling the house? Am I obligated to let them know of my intent to sell?

Steve Hall · Answer

Before anyone responds to @Lea Mitchell, you may want to read her post from last month. (It helped me understand the situation better.)

I would tell the tenant that you are planning to sell the home and ask them if they want to buy it. If they say no, then tell them they have 30 days to move out. Once they move out, put it on the market.

No investor will buy it with the tenant in place if you are losing $200 a month, and if you try to show it while the tenant still lives there, they could tell the prospective buyers that it is a high crime area, that they get migraines after spending more than 4 hours in the house, or that there is mold in the attic.

Also, keep in mind that if you have a current lease agreement in place, you will need to honor it.

Nick C. · Answer

Although you have no legal obligation to tell them, most states require some kind of notice before entering the property to show it to prospective buyers. Here in Florida it's 24 hours. You can sneak around the issue and pretend these are insurance inspectors or try to sell the condo sight unseen, but this will be a lot easier to just let the tenant know your intentions.