Owning a rental property can be a lucrative investment, generating a steady income from rent payments and property value growth. But in a strained and uncertain economy, many property owners decide to let go of the landlord gig and offload their rental homes amid falling rent prices in major cities.
Even when the market is at its best, there are plenty of other reasons property owners may choose to sell, such as relocation, a better investment opportunity, or lack of time to manage the property. Selling any type of home comes with complexities and considerations, but even more so when it’s a rental property where tenants are currently living.
If you’re considering selling your occupied rental home, you probably have some questions in terms of how to do it. Keep reading to find out our suggestions.
Wait Until The End of The Lease Term
The easiest way for a fixed-term lease is to just respect the contract by waiting until the lease expires and your tenant has to move out. However, if your tenant has violated any lease terms, you can terminate the lease more quickly with proper notice. Valid reasons for a lease termination include the following:
- Failing to pay rent
- Engaging in illegal activities on the property
- Violating a no-pet clause
- Subleasing is prohibited
- Causing serious property damage
Execute an Early Termination Clause In The Lease
Some leases contain a “safety net” for the landlords known as an “early termination clause,” which can handle various situations. There is a case where tenants, even those in good standing, don’t get to live out the entire lease. Some leases have an early termination clause to handle a variety of situations.
These clauses usually say that the lease terminates in 30, 60, or 90 days, for example, after closing the property’s sale. The trigger for the termination can be anything you want, as long as it is reasonable and both parties agree to it in the lease.
Work Together and Communicate
By working together, the situation may end up being a win-win for both yourself and your tenant. Coach them through how to show potential buyers they are great tenants so that the new buyers may want to keep renting to them if they are looking for an investment property themselves.
If not, you can offer to work with the tenants to find a suitable property that may work for them. By helping your tenant, he/she will feel more positively about the situation and will likely return the favor by being more cooperative throughout the time your property is listed.
Sell To Homebuyers
Selling a house can be stressful as it is; having tenants can make it even harder. But, marketing your property to a home buyer company can make the process so much easier. A home buying company will buy your house with or without tenants and take care of the entire process. The benefits of selling to home buyers are immense and may be worth considering.
Here are a few examples of how you may benefit from selling to one:
- They buy houses as-is: If your home is run down, a realtor may not even want to work with you. If they do, they may request that you complete a list of repairs before they’re willing to list and promote your home. A home buyer will never require that of you.
- They pay in cash: Realtors can find you people who want to buy your home, but they can’t fund that buyer. Only a bank can do that. Most buyers don’t purchase a house entirely in cash; they will generally need approval from a financial institution. A home buyer has their capital and purchases homes entirely in cash, and they’ll never require support for a loan.
- No commission fees: Realtors don’t work for free. The average realtor will take a six percent commission on the sale of your home. In most cases, this is over $10,000. There’s no reason to deal with commission fees when you’re working with an investor. A home buyer company works for free and does not require you to pay anything for their services.
- Quick closing process: The lack of agents, commissions, closing paperwork, and loans allows investors to jump from point A to point B very quickly. They will already have the money ready, and the closing process is as easy as can be.
Selling Your Property Can Be Easy With Seattle Home Buyers
If you’re looking to sell a house with tenants in Seattle, the experts at I Will Buy House can help. We understand that life can put people in all kinds of undesirable situations that they need help getting out of quickly, which is where we step in. We buy houses in Seattle, and we look forward to helping homeowners find solutions.