Landlord will not show inside of property for fear of tenant leaving

[AC Cooley]

A landlord wants to sell his house but he will not show the inside because he is afraid the tenants will get scared and leave if they find out that he is selling the property. Is this normal? He said he maybe willingly to have me come in pretending to be a friend. The house was rehabbed two years ago and should be in great shape but who knows what the tenant has done to the house in the last two years.

How do you handle this situation?

[Jaremy Moritz]

This is really a common occurance, at least it is for me. I usually tell the prospective seller to inform the tenants that I will be coming by to do a "property condition assessment" for a potential lender, even though this isn't the case. A lot of tenants are real cautious and nosy when I'm there, but I do my best to put them at ease by explaining that the seller is considering adding properties to his rental portfolio and his current properties have to meet our "condition standards" before we approve him for additional funding. I ask the tenants if they know of any problems or issues that need to be fixed. This way the tenant is more than willing to divulge any problems or issues with the property and it is a great indicator as to whether or not you would want them to remain as tenants if you buy the property. It also opens the door for you to come back to the tenant (if you successfully buy the property) and let them know that the owner decided to sell the house to you instead of going the other route. Then it doesn't make you seem like you mislead the tenant on your initial visit.

I've used this technique for years and I've never once had a seller not be fine with it. The key is to explain to the seller ahead of time what you will say and how you will handle the sensitivity of the issue.