Are you currently renting out your property to tenants, but expect to try and sell the house once their current lease is up? Do you wish to help them make this transition as easy as possible? If so, then you need to help them find new housing.
Finding new housing for tenants isn’t required of the landlord if their lease is up. However, if the lease is still in full-flight, there might be other details and legalities that you need to know.
Be sure to read below for an in-depth guide on how to help your tenants find a great new situation for themselves and their families.
1. Know Their Rights
As a landlord, you must know the rights that your tenants have. If you think you have the right to sell the house at any time without telling them, you’re wrong.
First, you must inform your tenants the right way. Make them aware of your intent to sell the property.
Depending on where you live, your tenants might have what’s known as the “first right of refusal”.
If that’s the case, then the tenant has the right to know when the landlord intends to place the property on the market and how much they’ll be asking for it. The tenant can use this information to either make an offer to buy the house or decline it.
Give them an appropriate warning. Most landlords abide by a 60-day wait period from the time they make their tenants aware of their intent to sell to when they list the property.
This can also help you get your ducks in a row with the real estate agent that you’ve hired, make any necessary renovations to the home, and so forth. As long as you give the tenant proper notice, most will accommodate your intent to sell.
Be sure to read this guide for more information on when and how to sell your property.
2. Suggest Other Rental Properties
If you’re a landlord with multiple properties, then this entire situation might turn out to be a home-run for you.
If you have other properties that are currently unattended (or will be soon), then you can use those to your advantage. Whenever you go to alert your tenant of your selling the property they currently live at, you can offer the other properties up as well.
Assuming you’ve done right by your tenants during the duration of their lease, most will be happy to go into a lease with you at another spot.
Make sure that the property makes sense for them. For example, don’t try to upsell them to a 4 bed/2 bath just because you know they’ll have a sense of urgency.
Highlight the amenities of the other properties. Think of it as a presentation that you’re giving to your tenants.
If the tenant were to agree on a lease with another property, you might also consider helping them move out as an added incentive and way to support them.
This can be especially helpful if your tenants are up to their age and need assistance moving their heavier items.
3. Use Your Network
Okay, so let’s say that you’ve properly informed your tenants of your intent to sell and they’ve declined the option to buy the house.
They’ve also declined any of the other properties that you’ve offered for them to rent (or you didn’t have any other properties to offer). What can you do now? How can you help them find a good setup? By using your network.
These days, there are many kinds of people that are looking to rent out properties to tenants. With such a crazy housing market, people are looking to move out of their current place and rent it out to make a bit more money.
Ask around. Reach out to other property owners. Contact property management companies to see what properties they have available. You may just find the perfect fit for your tenants’ next house.
4. Cast a Wide Net for Your Home Sale
As much as your tenant may love the house they’re in, you should never assume they’ll make an offer to buy it.
Some people prefer to rent properties. They have no interest in buying a house, especially with the asking prices of today’s market.
Instead, build your book of interested buyers right away. As soon as you’ve informed your tenants that you intend to sell, start building a list of people that may want to purchase your home.
If the tenant wants to match the offer, great! If not, then you have other buyers who might be willing to purchase it right away.
5. Incentivize Your Tenants
Remember, your tenants didn’t ask for this to happen. They may accommodate your need to sell the property out of the goodness of their own heart, but that doesn’t make it any less difficult on their side of things.
Be sure to incentivize them in any way that you can. If you have a month or so left on the lease, lower the rent so that you can show the home.
This isn’t technically a legal requirement, but it’s a great way to do business. In a day where online reviews reign supreme, you’ll want your tenants to be able to back you up.
Help Your Tenants Find New Housing Today
Now that you’ve seen a detailed guide on the correct way to go about selling a property that has tenants in it, be sure to use this to your advantage.
Put yourself in your tenant’s shoes. You know them well enough by now, how will they take the news? How can you accommodate them?
Be sure to browse our website for more articles on new housing, as well as many other helpful topics.