One of the most complicated things to do if you’re a Real Estate investor is selling your rental property when it has tenants, especially in the State of California where tenants have rights.
Even though selling a home with tenants may seem complicated, it’s really not that difficult especially if you follow these tips.
Tip #1 – Establish a Clear Understanding with Your Tenant
From the moment that you decide to sell, you should contact your tenant and establish a clear understanding (Reasonable Notice) that your intention is to sell the rental property and they must also be aware that the rental property is going to be shown by a Realtor® to prospective buyers at some point in the near future.
Once you’ve established reasonable notice with your tenant that you intend to sell your rental property you must also send them a written Notice of Showing after the rental has been shown just so they are aware that buyers and tenants were in the rental.
Although you may be excited about the thought of selling your rental property you should also consider offering it to your tenant first, especially if they have been living there for one year or longer because, they may be inclined to purchase your property instead of facing the hassle of searching for another rental and moving again.
Tip #2 – Make Sure the Home Shows Well
After communicating with your tenant and establishing a clear understanding with them that your goal is to sell your rental property the next step is to make sure that the rental property will show well. This can be done by offering your tenant incentives to clean the rental, or hiring a professional cleaning company to come in and clean.
Besides cleaning the home to make sure that it shows well you should also make improvements like painting, cleaning carpets, refinishing flooring or fixing anything that’s broken in the home.
Tip #3 – The Sale Must Be a Win-Win for Tenant and Buyer
Last of all, but most important, the sale of your rental property must be a win-win for both your tenant and the buyer.
If your tenant signed a 12-month lease, and 9 months remain, they have a right to continue living in the rental property but they must keep making their monthly rent payments as before to the new owner once the rental has sold.
The lease must be honored, and the sale of the rental property does not change your tenant’s right to refund or security deposit when they move.
To learn more tips about how to sell a rental property when you have tenants, or to view homes for sale in Sothern California, contact Fred Sed Realty today by calling us at (800) 921-9231 or connect with us online.