How To Sell A Tenant Occupied House in Denver?
Rental property is great for a steady income, isn’t it? Until it needs so many repairs, it just isn’t worth your energy and time. But can you sell your Denver house while there are tenants living in it?
Ethically, if you need to sell a tenant occupied house in Denver, you should make it an easy transition, if possible. Start by advising the tenant of your intentions, provide them some sort of timeline and what they should expect during this time.
If they choose to stay, you’ll need to let any perspective buyer know there are current tenants. Hopefully, you can sell to someone that is willing to honor the current lease and make the transition smooth for the tenant.
With all that in mind, remember this is a business for you. So, avoid any possibly of losing money. If you get a reasonable offer that doesn’t include the current lease being honored, don’t hold on to the property. You need to do what is in your best interest.
The Tenant Has Rights
Remember, the lease the tenant signed obligated you as much as it did them. So before you make that decision to sell a tenant occupied house in Denver, CO, review the lease and make sure you have a clear understanding of tenant’s rights.
If you are asking the tenant to vacate the Denver property, you are required by law and the lease to give them the ample time notice. Just as they need to abide by the law and the lease, so do you as the landlord. Any lease you have should always have a termination clause that allows you as owner and landlord to end the lease early.
Selling your Denver, Colorado house with tenants can seem challenging and difficult. But there are legalities on your side and when they are adhered to, the process can flow easily and quickly without a lot of disturbance to either party.
Sell Your Denver House Directly
By selling your Denver house directly, you can eliminate the usual requirements of cleaning, staging, marketing, and showing the house. When a rental property is occupied, it makes it difficult to do all of that within the timeline a realtor request. And then there is the part of finding a buyer that will honor the lease and work with the tenants. By selling direct to an investor like Property Scouts LLC, a rental property that is occupied is a perk.
Offer The Tenants Incentives
If you are listing the rental house with a Denver, CO real estate agent, you will either need to wait for the tenants to move, or ask them to cooperate with the cleaning, staging, marketing, and most of all, the showings! Nothing will lose a sale faster than uncooperative tenants that sabotage a showing, intentionally or unintentionally. To make sure they are on your side, you may consider reducing their rent or hiring somebody to clean the house and do the yard work while the house is on the market. Some tenant-occupied property owners have offer to pay the tenant deposit and first month rent at a new location to encourage the tenants to move. Remember, while you own the house, it is their home and it is them that will be inconvenienced. Financial assistance or some type of incentive will make this an easier transaction for them.
Respect The Tenants
Again, this is the tenant’s home, and chances are they have grown attached to house and neighborhood. To get uprooted can be disruptive on many levels for them, especially if there are children in the house. Make this sale as easy on them as you can without putting your own personal interest in jeopardy.
Sell Your Denver House To The Tenants
Your tenants may be so attached to this house, they’d be willing to buy it from you. If they have lived there for a length of time, they have become a part of the community and made this house their home. This may be your first approach before contacting a real estate agent, and if they do want to buy it, think of all the money, time, and trouble you’ll save!
Wait Until The Lease Is Up
This is the other option to consider, while it may not be the one you prefer. If you can wait to sell until the lease is up, you’ll avoid a lot of headaches for the tenant and yourself.
Selling a Denver house that is tenant occupied doesn’t have to be difficult, but it may have some challenges to overcome. Just remember to be considerate, plan ahead, stay open with the tenant and above all, follow the law.
