Selling your house with a tenant is complicated in Palm Beach and the Miami and Ft. Lauderdale area. One option is getting a cash offer to sell as-is from a cash home buyer like House Heroes LLC and not worry about the tenant. The sale of rented property is different than vacant/owner-occupied property. In the vacant/owner-occupied scenario, the buyer can immediately move in. When selling a leased home, the tenant is permitted to stay the term of their lease. Make sure to consider these three things if you need to sell your rented home.
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Call Us (954) 676-1846 Send Text or Fill Out This Form For Your FAIR Offer.
Raise Rent to Market:
Landlords commonly buy tenant-occupied houses. Unlike selling to an everyday homeowner, landlords are not concerned with finishings, upgrades, or curb appeal. Landlords are looking at the return on their investment – which boils down to the revenue earned on the property (i.e. the rent) vs. the cost of purchasing and maintaining the rental. Some landlords don’t increase the rent as the market goes up. Landlords may be unaware of the rental market, not willing to push their tenant out by raising he rent, or friendly with their tenant such that they don’t want to create a financial burden. Nonetheless, you are in for a big loss if you try to sell your rented property collecting less than market rent. To figure out market rent, you can look on Zillow, Rentometer, Craig’s List, or speak with a leasing agent. Detailed research near the time of lease renewal will help you know where to go with the monthly rent.
Cash For Keys:
Give the tenant cash to terminate the lease and move out. Its a win-win scenario for tenant/landlord. Smart landlords often want to sell single-family houses vacant and, if so, the tenant will be forced to leave. The tenant can accept moving costs/first months’ rent from the landlord, get to their new apartment, and the landlord can proceed to the home sale sooner rather than later. Landlords can make the cash contingent upon leaving the property in tip-top shape.
Month to Month / Don’t Renew:
Anticipate your sale. Once you are serious about selling, don’t enter a 6 or 12-month lease. Month-to-month tenancy gives landlords flexibility to sell within one or two months, while still collecting rent while making the final decision to sell. Tenant often are agreeable to month-to-month as they also are not tied to the lease. Similarly, don’t automatically renew an expiring lease. Although it may be painful to go a period without rent, if you’re ready to sell, losing 1 or 2 month of rent is a small cost for the bigger pay day from sale price.
We Buy Houses
Call Us (954) 676-1846 Send Text or Fill Out This Form For Your FAIR Offer.
