Today we’re talking about whether you can sell your property while it’s being rented. You can absolutely do this, and it’s actually possible to maximize the proceeds from the sale when you have tenants in your house. Here’s why: a traditional sale occurs when the house is vacant. It might be vacant for two to four months while it’s on the market and being prepared for sale. Then there’s an additional wait while the buyers are getting their financing in order and the appraisal complete. You don’t actually make any money until the sale closes. Most people have a mortgage on the property they’re selling and they lose that cash every month it sits on the market. Many sellers also feel pressured to drop the price in order to move it quickly.
With a quality renter in place who is willing to be helpful with showings and the sales process, rent is still coming in. At Mark Brower Properties, we give our good tenants an incentive to allow potential buyers to access the home. We also incentivize them to end their lease early in the event we need to accommodate a buyer who wants to buy the home and move in.
There are two types of buyers – the investor, who would love to buy a rental property with a tenant already living there, and buyers who want to move in themselves. You can successfully manage this process by using your negotiation and communication skills. Talk to your tenant about your plans for selling the home and be respectful of their time and schedules. You can keep your tenant
in place and paying rent while still showing home and getting it under contract. Then, you can work together to get the tenant out early if necessary so the sale can close. This type of situation is a benefit to you as a landlord and an investor.
If you have any questions about this, please don’t hesitate to contact us at Mark Brower Properties, and we’d be happy to help you.