There’s a Tenant In My Property But I Want to Sell It:
In the state of Virginia a tenant has the right to stay in the property throughout the remainder of their lease, regardless of what your agenda is. This holds true whether it’s a regular sale, a short sale, or a foreclosure. The tenant is the resident of the property until the specified end date as dictated by their lease.
If you’re looking to sell the property while you have a tenant, you have a few options:
1. With permission and cooperation of the tenant, you can put the property on the market subject to an existing lease. Meaning, you can either sell the property and the new owner inherits the tenant, or you can wait to close until their lease is up. *Remember, certain types of loans REQUIRE a purchaser moves in to the property within 60 days of closing if they specify they intend to owner occupy. Any disregard to that clause is fraud.
2. Discuss options with the tenant – find out what their plans are. You may get lucky and find they want to move sooner and you can let them off the hook for the remainder of their lease in order to sell it sooner.
3. If the tenant doesn’t want to move, your Realtor(R) can help find them a new place, and you could potentially offer them some sort of compensation for moving sooner, if it’s worth your while.
4. Remember to ask your tenant if they’re interested in buying the house. You never know!!
5. If you do work out something with the tenant where they allow you to market the property and arrange showings, remember to get a waiver from them to use pictures. It’s their personal property in the pictures, so if anything happens, you want to cover your rear that you had permission prior to marketing the property.
Obviously things can be a little different based on every situation, but that should help start the dialogue with a tenant about your options. Have more questions? Call or email me: 703.283.6120 or Laura@TheLJRGroup.com
p.s. An update on my post from yesterday – my brother and sister-in-law welcomed a healthy baby boy in the early hours of today! Congrats to the new parents 🙂 That makes 5 nephews for me!