Tips for Selling a Tenant Occupied Home

Selling your home can be complicated, but selling your investment property with the tenants in place can add a whole new layer of complexity!

Tenant cooperation is vital for the sale of the property, so once you have decided that you want to sell your home with tenants in place, here are our recommendations.

First and foremost, we recommend that you talk to them and let them know of your intention to sell the home. Far better for a tenant to find out about ‘their’ home being sold from the owner, as opposed to anyone else!

It’s likely to be a huge (and usually unpleasant) surprise. Remember, it’s their home too and they have families and lives which are going to be disrupted. We recommend having a frank and honest conversation with them: Tell them the reasons for the sale and that you understand that it is their home and you will be respectful of that. Explain that there will be disruptions such as having professional photographs taken, scheduling viewings, and allowing access for inspections and the agent’s appraisal.

And explain that you need the home to be in the best condition for showings. Ask the tenants to keep the clutter to a minimum and if they have pets to take them out during viewings.

Have a meeting with the tenants and your agent to go over the process, so a tenant knows what to expect. The tenants can be the gatekeepers to the home and make or break the deal. Communicating up front with them to let them know the process and what to expect can help the process move along smoothly.

Now that you are asking for all this cooperation from the tenant, what’s in it for them? Offer to incentivize them in some capacity. Reducing their rent during the period it’s listed, or offering no rent, usually helps. Remember, the tenant is basically helping you sell your home so you need their cooperation.

In summary, if you treat the tenant with respect and you keep them fully informed you are more likely to get their cooperation, and their cooperation is essential if you want to get the best price.

Using an agent experienced with selling tenanted properties will ensure you get the best possible result. Don’t forget that your tenants have legal rights that you must observe. Before starting any proposed sales process be sure to discuss with your property manager!