Tenants not cooperating

[Lori Goldsmith]

Hi BP Community,

Took a listing to sell a property where the tenants have 3 months left until their lease is up. My sellers offered them first right to purchase the property. They cannot afford it, we put it on the market, will be in the MLS this week (after pictures are taken on Thursday) and a sign in front with "do not disturb occupants" rider. Done everything by the book. We advertised we need a minimum of 24 hours notice for showings. I have been kind and respectful.

In my 22 years in Real Estate, I have only dealt with this situation one time and it went well, but unfortunately tenant already being difficult by making me wait 8 days to get in and take photos.

I come from "You attract more bees with honey" train of thought but I might need a different approach.

Looking for investors point of view on this one. How do you deal with tenants that might be difficult during the sale process? 

Thank you 

Lori 

[Juan V Lopez]

Sorry to hear that, Lori. My property managers have dealt with this in the past at my properties. You can go 1 of 2 routes:

1) Vinegar: There should be something in the lease agreement that states the tenant must cooperate with showings. If the tenant is uncooperative, that becomes breach of contract. If a tenant is not cooperating with showings or inspections your option moving forward is to serve the tenants with a “three-day notice to perform covenant or quit.”

2) Honey: Offer the tenant a bonus or rent reduction if the property is sold. "If the property sells within the first 30 days, we'll give you a $500 bonus. If it sells in the first 60 days, we'll give you a $250 bonus." Something you're comfortable with offering. This is to hopefully get them pulling in the same direction as you and presenting the property in a good way to potential buyers. Having a good conversation with the tenants may be good to smooth some things over.

I hope this helps. Hate when this stuff happens and people are disrespectful.