Selling your house can be a stressful in general, but can you sell a house if you have tenants in place? The short answer is Yes! See five steps below for selling your rental house with tenants in Orlando.
Step #1: Ask the Tenants
The first step to selling your house with tenants in Orlando is to notify the tenants the property will be listed for sale, and ask the tenants if they are interested in buying it. If they have been in place for a few years, they may want to purchase it and it would be a great opportunity for them to buy a house they know they love. If they are interested, have them qualify for a loan on your property and the purchase process should be nice and smooth. You may also want to offer an owner financing deal to the tenant if they cannot qualify with a traditional lender. This may also be ideal if they have a great payment history, and you can continue to look forward to monthly payments unless you need the lump sum of cash now.
Step #2: Review Your Lease
The second step to selling your rental house in Orlando is to review the lease you have in place with the current tenants. Most leases will have some sort of clause about what will happen if the property sells. In a lot of cases, when the property sells the tenant has a certain time frame to vacate the property, usually about 30 days. Your tenants may or may not be in a position to locate new housing at the time of the sale, so the earlier you are thinking about selling, the better to inform your tenants, especially if you are really serious about listing right away. If your property is in a hot market, the house may sell quicker than you think and the tenants may not make it out in time. Often, the lease has to be honored by the new buyer so this may be a drawback for a traditional buyer. But for investors, this is something that is normally dealt with and not a huge deal.
Step #3: Wait for Expiration
One of the least complicated steps for selling your house with tenants in Orlando would be to let the current lease expire and do not renew it. You can move them to a month to month agreement to cover your expenses or mortgage payment. This will allow you to cover your expenses and give them time to move out once the property goes under contract with a new buyer. If the tenant vacates at the end of their lease without going to a month to month lease, this will leave you carrying the cost of the property on your own until it sells.
Step #4: List with Tenants in Place
If you can’t wait for the lease to expire, then you can list the house in Orlando with tenants in place. This may work to your advantage, especially if the tenants agree to leave during showings because the property would already be staged (as long as they keep the house nice and tidy – which you have no control over). On the other hand, the tenants may be upset the house is being sold and might cause problems when the house is being shown by limited easy access and/or leaving the house in a mess for showings. Be prepared for the possibility they may also cause damage to the property when they leave, especially if they leave on bad terms.
Step #5: Pay the Tenant
The fifth step for selling your house with tenants in Orlando would be to offer payment for them to vacate the property. Investors call this “cash for keys” and this can work well as it provides them an incentive to vacate the property and moving money as well! This can also smooth over any uncomfortable house showings. You could also pay them by offering a discounted rental rate although this isn’t typically as effective.
If this seems like a lot, You Can Avoid These 5 Steps!
If you need to sell a house with tenants in Orlando, the fastest, easiest, and most convenient way is to sell the house to a direct buyer or investor, like us! We can eliminate or reduce the number of times property access is needed, help you deal with upset tenants by communicating directly with them if you prefer, which often helps as we are a third party, and eliminate the cost of putting it on the MLS and paying realtor fees.