Central Coast Real Estate: 3 Tips to Selling a Home with Tenants
Pismo Beach Coastline
1) Review your lease. Make sure you know when the lease will end, and when the tenants will begin a month to month tenancy. These are important facts to relay when selling a home with tenants. Investor buyers willl want to know, and other buyer will want to know when the tenants can vacate the property. Also, make sure you know how much notice the tenants are entitled to for showings – a well written lease will include a provision about notice.
2)Communicate. Don’t send your REALTOR® over to tell the tenants that the home is being sold. If they regularly deal with you or a property manager, they should be the first person’s to tell the tenant that the home is going on the market. This first impression can go a long way during the process. You don’t have to tell them why you are selling though, as this information might be casually relayed to buyers if the tenants are present for showings.
3)Offer an incentive. A small incentive can go a long way. Don’t just tell your tenant you are selling the home. Offer them a discount off the rent in exchange for the inconvenience of cooperating with showing appointments. Showings are inconvenient and the tenant is paying to live in the home, by offering a small discount off the rent you may turn around what could be a negative situation into one that is smooth as silk
Of course, the most important thing is to work with an experienced REALTOR® who will treat the tenant respectfully during the process of selling your central coast home. Selling a home with tenants is more of an art than a science. If you are interested in selling your central coastrental property, please contact my office at (805) 938-9950 and schedule an in person or telephone consultation. If you need a short sale on your home with tenants in it, I can also help guide you through that process. I can be reached at (805) 878-9879.
*Based on the information from the Central Coast Regional MLS. Neither the Association, the Multiple Listing Service, or Mint Properties guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market. Those considering a selling an investment home or a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a listing agreement — this blog does not offer legal and tax advice. This blog offers general information only which may not apply to your specific situation.
1) Be prepared for an “as-is” purchase. Many times there is deferred maintenance on short sale listings. Often owners in financial distress stop performing maintenance on the home either willfully and because they lack the funds. You can ask a short sale seller to make repairs, but often they are unable or unwilling to do so since they are losing their home. You can also approach the short sale lender and ask that they allow the cost of the repairs to be deducted from their “net” but often the answer will be no, even if the repairs are required by your lender in order to originate your new loan.
