trying to sell house - current tenants sabotajing process?

Question

Hi all,

I am currently renting out a house (sfr) in Boise. The lease expires in about 6 moths. Life happens, and I need to put it on the market ASAP. The tenants are not cooperating (not returning agent's calls, insisting that they are planning to stay in the house until the end of the lease)

What are my options at this point?

Gail K. · Answer

Inga....Your tenants are correct in regards to their "right" to continue with their lease until it would normally expire.   Typically when a rental unit is sold with a tenant in place their lease "rolls over" to the new owner.  As mentioned some landlords will offer a "cash for keys" deal with the tenants; offering them money to leave early.  The offer might be in the form of an offer to help with moving costs or perhaps to pay the security deposit on a new place.

If they decline such an offer they have the right to remain right where they are (as long as they continue to pay their rent and do not breach other clauses in their lease).

Speaking of lease; does this lease have a clause that addresses the issue of showing a place if you wish to sell (or re-rent) it?  Again, it is certainly your right to put the house on the market but the showings must be at reasonable times and after providing adequate notice to your tenants.  In many states this is defined as 24 hours notice.  The idea of one open house a week is one that many tenants will accept over having potential buyers coming over many times during the week to disrupt their life.

It sounds like perhaps it's time to sit down with these tenants and offer them the options, including reminding them that a buyer may be another investor who will simply become their new landlord.

Gail

Kim Meredith Hampton · Answer

Account Closed I've never had good luck with selling the property while it is tenant occupied!!! Did you offer them an incentive to cooperate with the showings, only show during times convenient for them, one open house a week, cash for keys to vacate early. Try and negotiate something that works for both parties

Claire Fenton · Answer

Account Closed You have received a lot of good advice from  BP members.  Our company has dealt with many investment property sales over the years and one of the first things we do is see if the tenant has an interest in buying.  Often they do.  If these tenants don't want to buy your house, or aren't in a position to, then your only option is to give them an incentive to move.  Obviously at the moment, with the weather we are having, no one who doesn't have to wants to move.  But this weather won't last forever, (I hope!) and you can agree to a "not before" date.  I would suggest you sit down and negotiate with your tenants. Approach them in a friendly way, appeal to their compassionate side.  If you are in a financial bind, put it on the table. If you are aggressive or confrontational they will dig their heels in and make things as difficult as possible for you.  A good place to start would be one month free rent, moving costs and the security deposit on their new home.  And work with their schedule in showing times.  Everybody hates to live in a home that is being shown.  Check fair housing rules.  I don't know if it covers this type of event, but if you are not careful you may have a fair housing suit on your hands.  Good luck, and next time have a professional property manager draw up your lease for you so you have better options.

Sai T. · Answer

Account Closed

I'm sure you are aware that the selling a home typically 3-5 months process but when you are selling tenant occupied home.  It may not sell before six months, if you are lucky!

Unless your property is a great location, in a great condition and below the market value!

Having said that just let the Tenant know it my take a while to sell the property.

Account Closed · Answer

It's a 210000 house and only 1200 a month in rent. I would really like to put it on the market asap.

What if I offered them one month rent plus deposit?

Account Closed · Answer

so I would have to pay them almost 8000$ to move out? I don't think I can bite that financially...

Account Closed · Answer

Thank you for all the replies – very helpful. Unfortunately it is not a good clash flowing property since it was my very first purchase (learning from my mistakes). Current rent is $1200. What would be an adequate amount to offer them in cash for keys?

Account Closed · Answer

The reality is, tenants are hardly ever cooperative when it comes to helping you sell the home they are living in. It is a HUGE inconvenience for them with no upside. If they aren't willing to terminate the lease early and move out, your best bet is to offer them a financial incentive to cooperate with the sales process. I would have a conversation with them, explain your situation, acknowledge the inconvenience and ask how you can find a win-win. See if they are open to specific days/time for showings. Maybe your agent only gets one or two open house a week. Offer them CASH if it sells.

Eddy Udry · Answer

Hi Inga,

I am an agent here in Boise and have some investors always looking.

Where is the property? Maybe I can do a drive by? let me know your thoughtys.

Eddy

trying to sell house - current tenants sabotajing process?

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