Just for Property Managers, Manager News, Rob's Tips
When it comes to selling an occupied rental house you should first address any concerns your renters may have. Before considering this arrangement, inspect the home and make sure that the residents are keeping it in reasonable, showing condition. If the home passes the suitability test then it is critical to get the residents’ cooperation in showing the property, otherwise, your effort to sell will be futile. The best method for accomplishing this is by establishing an addendum to the lease that specifically addresses the following:
• The amount of advance notice required prior to a showing. Governmental restrictions sometimes will determine what is permitted, but by mutual agreement with monetary or other consideration it may be possible to deviate from the norm. A four-hour notice is helpful for marketing a home for sale. Consult your attorney for guidance.
• The expectation for the property’s condition at time of showing it
• Monetary or other consideration to compensate the resident for their inconveniences. Lowering monthly rent during the sale period or agreeing to pay a moving allowance in the event of a sale are both effective methods for motivating residents to cooperate in opening their home to prospective buyers.
• Modification of lease term, if any, and possible change in notice requirements for vacating. Consult attorney for what may be permissible.
Selling an occupied rental house can be successfully accomplished if you meet the needs and desires of both the resident and the seller. Establishing an agreement (beforehand) for how it is to be handled is the key.
Rob Massey Jr., is a Certified Property Manager (CPM) and past President of the Louisville Chapter of the National Association of Residential Property Managers (NARPM).
The views expressed by the author are his own and do not necessarily reflect the views of Rentals.com or it’s affiliates