So you are thinking about selling your occupied rental property? Maybe you have had enough of being a landlord or maybe you have some life changes that make it too much work or maybe you need the cash for other plans. Here are some tips and tricks to selling that occupied rental property?
I wouldn’t say there isn’t a perfect scenario for waiting till the property is vacant vs selling while occupied. You need to ask yourself these questions and the answers may guide you down one path:
- How will the tenant(s) react if I have people scheduling showings every day and maybe multiple times per day? If they will be frustrated, then you will have to wait till they vacate
- Are the tenants messy, home all the time, and/or are there pets? You may have to wait
- What is your relationship like with these tenants? If it is bad, then maybe these problem tenants will just create issues for you when you try to show this unit.
Wait till lease ends or sell now Pros & Cons
- Easier for showings, no scheduling issues
- With no furniture, property will look larger
- You can touch up/repair items for better showings/more money
- Lost income while on the market
- Some buyers only want occupied units
I have seen this process work well or go very poorly mostly depending upon the tenant. If they are willing to work with the landlord, then this may not be a big deal. If not it can be a nightmare.
Here are some ideas to make selling your occupied rental easier on the tenants:
- Schedule all showings on the same day, 15 minutes apart and plan to have your property manager or owner there to escort the showings through. This gives the tenant one time and you are there to talk the tenant off the ledge if they get upset.
- Give the tenant a financial incentive to keep their place clean and allow showings.
- Show just 1 unit (in a multi-unit property) at a time. I often will schedule the 1st showing for the easier tenant (or vacant unit) and then they have to walk through the other unit(s) on 2nd showing with me.
- Require 24 hours notice on showings with other agents and hold firm to that. Notify the tenants in advance that you are going to require 24 hours notice to eliminate some worry.
Selling your occupied rental property can be a challenge. You must do your best in advance to eliminate any conflicts with your existing tenants.