Allow a buyer to list your rental?

Question

In Florida (or anywhere) - Would you allow a prospective buyer to market one of your vacant units (in a multifamily) 1 month before they are to close on your property? If yes, would you allow them to show it during this time? What about advertising while not clearly stating they are the buyer and not the current landlord/owner?

Vaibhav Puranik · Answer

The simple answer is no. This is where I draw the redline. I think there is a black and white line of closing day after which the prospective buyer becomes the owner. The issue here is, what if they found someone, sign the lease and the deal falls through. In today's market, financing can fall through on the last day. I just don't think one month is going to that much difference. I have a property under escrow right now (where I am the buyer) and there is a vacant unit. But I am going to wait until the very last day to officially list it. I am not even asking seller for the permission to list. I don't want to do it.

Caleb Brown · Answer

I wouldn't. No guarantee they will close. So many monkey wrenches can happen. Easier to have them wait till it's closed and funded.

Caleb Brown · Answer

I am an agent. I've sold many properties. In my area this is not standard and would be odd. Occasionally I've had clients ask and seller always says no. I always advise them to wait. It is your property so they can't (I'd verify) market without your approval.

Amit Patel · Answer

Hey Lisa,

I would be very careful with this. Letting a buyer market and show a vacant unit before closing can work only with a tight written agreement. Without that, you take on confusion, liability, and a mess if the deal falls through.

Showing the unit with your permission, your lockbox or keys, and you or your manager present or controlling access is the safer version. Advertising is the bigger problem. If they list it as if they already own it or collect applications and deposits, tenants can claim they dealt with the landlord. That gets messy fast if closing is delayed or canceled.

I would not allow them to advertise without clear language that the sale is pending and that no lease is valid until after closing and your written approval. I also would not let them take money or sign anything in their name before they own the property.

A vacant unit is tempting to pre lease, but one month of marketing is not worth the risk of a bad tenant or a disputed deposit if the buyer never closes.

Marc Winter · Answer

Just say "no". Not their property, but your liability. Wait until closing.

John Leland · Answer

The amount of liability you would be assuming would negate any benefit, so of course "no".

Lisa Oliver · Answer

Caleb, My agent is telling me this is standard practice (advertising, but no showing, no leasing before close date) and nothing I can do. What are your thoughts.

Lisa Oliver · Answer

Thank you Amit. They are telling me that they are not showing it, collecting money, or signing leases prior to close. My realtor is telling me this is "standard" and nothing I can do.

Lisa Oliver · Answer

Thank you Vaibhav.

Allow a buyer to list your rental?

Allow a buyer to list your rental?

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