Selling A Home With A Tenant Still Living There

Selling A Home With A Tenant Still Living There

What if you have a property this is currently rented and now you want to sell that home? There are so many pieces of this puzzle, it’s important to look at it from all angles before you make a decision:

  1. Timing. In Virginia, a tenant has the right to stay in a property through the duration of their lease, whether you are the landlord or you sell the property and there’s a new landlord. The new owner would basically inherit the tenant, their lease and their security deposit. The bad: if your potential buyer is intending to live in the property, the tenant must be out by 60 days from closing for the buyer to use an owner-occupied loan.
  2. Showings. A tenant needs to be willing to cooperate with agents to allow for showings, which means more than just allowing people in the door. The house also needs to show well – tidy, clean, pets secured or removed, etc. Usually the lease states they must cooperate if you intend to sell, but reality is different than words on paper.
  3. Reality. Most tenants don’t care if the place is “show ready” or easy to show, they don’t care if you sell it or not. Sometimes it might be better to wait until the unit is vacant, depending on the tenant. That said, if you don’t want to or can’t wait until it’s empty to sell, it’s important to maintain open and honest communication with the tenant to make it as easy as possible on everyone.

Have a specific question on selling a property? Email or call me!