Are you tired of being a landlord and considering selling a house with tenants in it in Idaho?
Selling a home with tenants in it can be slow, expensive and difficult, especially through the MLS in a traditional sale. This article goes over some of the issues that landlords face when selling a house with tenants in it in Idaho.
It can be a pain to sell tenant occupied properties because:
Tenant occupied property is often messy.
A lot of property with tenants is cluttered and messy, making it hard to sell rental property with tenants. People are busy and it is really difficult to keep a clean house when they work full time or more and have kids and pets at home. Since tenants don’t have pride of ownership, often the yard is poorly kept and the house isn’t furnished or cleaned well – making it show poorly. Even homeowners who have listed their home for sale have a hard time keeping their own personal residence perfect all the time so it’s ready to show at a moments’ notice – and they are the ones who want to sell the house! Imagine how a tenant feels who doesn’t want the house to sell and feels that their home is being sold out from under them? Not exactly motivated, to say the least. Most of your prospective buyers who come through the MLS are looking for a home they connect with emotionally and have a really hard time looking though mess and clutter, so they are often turned away by messy, cluttered, ugly houses with overgrown or dying lawns.
They’re usually in need of repairs and updating.
Selling a house with renters is made even more challenging because they usually need repairs and updating. Especially if the property has been tenant occupied for a long time, rental property owners usually can’t afford to keep kitchens, appliances, bathrooms, paint, and floor coverings in sparkling new shape, just to have tenants use and abuse them. It would kill your cash flow! If these items are functional, clean and safe that’s good enough for most rental property with tenants in it. But, that’s not good enough for a buyer looking for a house to call home! A typical buyer’s home inspection will usually turn up multiple repairs and updates that don’t seem necessary as a rental property, but are very necessary in the eyes of a personal home buyer – and they will usually negotiate these items off of the sale price during the process of a traditional sale.
The majority of your prospective buyers are looking for a place to live
Most buyers on the MLS are looking for a home to live in and planning to finance the purchase with a mortgage for a primary residence. If you are selling a house with tenants and your buyer is buying with a mortgage for a primary residence, they will not be able to get financing for your property. If you and the buyer withhold the fact that you’re selling a house with renters, that’s mortgage fraud. Real estate agents know this and will let their buyers know, which is yet another reason it can be difficult to sell rental property with tenants because you have a much smaller pool of eligible buyers.
They’re really hard to show around the tenants’ busy schedules.
Just picture this: your rental property is occupied by a couple who both work full time and have three children who each have their own busy schedules of sports, school, clubs, etc. Since you’re selling a house with tenants, the listing will require the agent to give 24-48 hour notice to show the property and they will need to set an appointment with the tenants to do so. How motivated is that tenant going to be to cooperate, especially given that they don’t want the house to sell in the first place? The answer, in our experience, is not motivated at all, which is another reason that selling tenant occupied property can be really difficult. The most motivated prospective buyers will often find a different property to buy before they ever get a chance to view your rental property with tenants.
Your best tenants often leave as soon as they learn that their home is for sale.
Most of your best tenants are people who plan ahead and want housing security, which means that your highest quality tenants tend to leave as soon as they learn that you’re planning to sell. This leaves you holding the bag of a property that is not only negative cash flowing, but has also been moved out of recently revealing scuffed up old paint, worn out floor coverings, and dated fixtures and appliances. This vacancy and maintenance can cost you thousands of dollars as compared to selling your rental property with tenants still in it and paying rent.
But there’s a better way.
At Brady Buys Houses we buy homes directly and we work with landlords who are looking to sell a single property with tenants, or even entire portfolios.
We buy with cash, as-is, in any condition, with no inspection contingencies, appraisals or any of the hassles of a traditional sale. There are no commissions and we pay all the closing costs. Also, instead of bothering your tenants with dozens of walkthroughs we will only visit the property one time and we are used to looking through clutter, mess and deferred maintenance. And as investors, we can usually accommodate those tenants at least until the end of their current lease, if not longer.
So if you’re looking for a better way to sell your tenant occupied rental property, just fill out the quick form at the top of the page and then we’ll reach out to you to set an appointment. Or send us a message or call us at (208) 298-5422 today to see if we can come up with a good solution for you.