How easy is it to sell a home with tenants in it?

Introduction

Selling a tenanted property is not a straightforward proposition. First, the situation depends on the circumstances involved, covering a range of possibilities. Even in a hot sellers’ market, single-family (SF) or multifamily (MF) homes can get stuck in a rut if you ignore the real deal drivers. On the other hand, a systematic approach can remove unnecessary obstructions from the selling process and be very rewarding.

Pick your audience carefully.

When you own a rented property but your marketing targets buyers who want the home to live in (hereon referred to as “LIs”), you’re competitively at a disadvantage. Why? Because neighborhood real estate options offering immediate buyer occupation will have a massive leg up – no matter how appealing the features you offer. Of course, there may be a few cases where prospective buyers are ready to exercise some patience. However, it generally only works when the remaining lease tenure is in months (rather than years), and the rent revenue makes ROI sense. The most important thing to remember is that trouble-free leases are vital to get the deal over the line.

Another thing – you’ll probably find that most residential realtors are out of their depth when it comes to selling properties weighed down by leases (i.e., good ones and not-so-good). But, again, that’s because the buyers are primarily in the LI category. So, how simple is it to shift the emphasis away from own use to investors seeking tenanted SFs and MFs?

One recommended direction is to rely on home cash buyers for a better resolution.

• They’re already into remodels and leased properties, so they won’t penalize you by claiming rented real estate is a disadvantage.
• Moreover, home cash buyers can give you a mortgage-free, commission-free price without disrupting the tenants in occupation.
• Other hassles that align with a traditional realtor, like creating curb appeal, staging, decluttering, and repairs, fall by the wayside.
• Finally, the cherry on the icing is that you can close the deal within a week.

Problematic tenants – what to do about them.

Let’s put it this way – the home cash buyer uniquely comes to the fore when the tenants are problematic. For example, late payers and people who disrespect the need to look after the asset they reside in will meet their match when interacting with a professional home cash buyer. Therefore, any selling transaction with the latter can remove a big headache from your property portfolio without severely cutting into the offer price (the cost of addressing the problem).

Suppose your rented house isn’t resonating with the LI segment because the buyers see tenancy as disadvantageous or okay with it, but the tenants still represent a burden. In that case, home cash buyers are the ticket to a realistically better home seller experience.