Have you been facing financial constraints lately and require some cash to help you with liquidity? If you own a house that has tenants living on rent and they are paying you monthly, then it’s time that you bid goodbye to them if you’re serious about selling the house. However, you must keep in mind your rental contract and the laws that are in favor of the tenant, which means you cannot take any steps that might be unfair.
1. Have a discussion with your tenants
Once you are certain that you need to sell your house, the first thing you should do is visit your tenants and inform them about your plans. As it takes at least 2 to 3 months to sell a house, your tenant will have enough time to look and search for a new house they might want to settle in. Assure them that you will only ask them to move out once the rental agreement expires and that they can take their time to look for a new house without any pressure. Also, let them know that potential buyers might come and visit the house at appointed times, so they should keep the house clean to maintain a good impression.
2. Wait for the rental contract to expire
When you already have tenants living in your house, then you must have had an agreement with them about renewing the rental contract every 6 months or once a year. The easiest and the most respectful way to abide by the contract are to make sure that you ask your tenants to move out once the contract expires. However, if you’re in a hurry to sell the house or the buyer wants to move in quickly, then you can discuss the terms with your tenant. If your tenant is able to find a house in a short period, then you can ask them to move out before the contract expires.
3. Work out an arrangement with the tenant
If you have tenants who have been living in your house for a long time, then it is necessary that you get the renovations done before you can sell the house to someone else. Now because the tenants are living in your house and you’re probably short on time, that is why you can have a chat with the tenants. Inform them that you will be taking care of some renovations and maintenance inside the house so that they can be aware of the situation. If they go to work in the mornings, you can call over the maintenance workers in their absence so the repairs can be done before they arrive home in the evenings.
4. Request your tenants to help you out a little
If you are on good terms with your tenants and they have been living in your house for some years, then they won’t mind helping you. Request them to guide the potential buyers when they come to visit the home and give them an impressive home tour. In return for this favor, you can provide them with some discounts on their final rent or help them find a new rental home. Moreover, already having a tenant is a good marketing strategy as it helps increase the market value of the house and also assures potential buyers that the people who are currently living in the house are satisfied and have no issues. This way, they will be comfortable and will also be able to ask your tenants questions about the house.
5. Make an offer to your tenants to buy the house
Not many people may think of this, but offering your tenants to buy the house will save you from a lot of hassle and time. If you immediately require cash, you could sell the house to your existing tenants by providing them with some discounts. If they are financially stable and can make the purchase discuss the benefits with and convince them of making the purchase. If they agree to purchase it, you won’t have to look for new buyers or set a market rate.
Make sure that you effectively conversation with your tenants before taking any decision, as whatever decision you might take will directly or indirectly have an impact on them. It is recommended that you discuss everything in the beginning so that there are no issues later on.