Selling a property with tenants can be tricky. Especially if the tenant is not willing to leave or there are other circumstances that make it difficult for them to move out in time. In this blog post, we will discuss some of the laws that might apply and what you should do when selling a property with renters inside. We will also talk about how to sell your rental property through a reputable company like Philly Home Investor.
Many people think they may not be able to sell a property with tenants living inside of it. However, there are a few ways around this potential issue, including working with Philly Home Investor to sell your rental property in Philadelphia and beyond.
1. What are the benefits of selling a property with tenants in it
There can certainly be benefits of selling a property with tenants in it. For one, the rental income may be a good way for you to keep up with your mortgage payment each month. You could also sell it on consignment or lease-to-own through an agent who specializes in this type of business model.
Another benefit is that if there are tenants living inside the property then they will likely take care of any damages before moving out which can help reduce costs. There’s no need to pay for repairs after someone has already moved out and left them behind!
Keep in mind that most of the people who buy properties with tenants in them are usually investors. They will often buy properties for resale or as part of their rental portfolio and not to occupy themselves.
One of the biggest challenges when selling a property with tenants is that you need to be sure they are able to move out on time before listing. This means having an exit plan ready so they can leave once the sale goes through. You may work with them directly or hire someone else to ensure everything runs smoothly including finding a new place for them!
Another challenge could include dealing with one tenant who refuses to follow your instructions about how things should go when moving day arrives which can cause complications like delays, damages, late notifications, etc. They might also refuse requests for access into their unit if there are items left behind such as furniture or other belongings after being evicted.
2. How to find out if your property is worth more with or without tenants
Understanding whether or your property is worth more or less with tenants can be difficult. There are a number of factors to consider such as the square footage, current or potential rent rates, and other items that could impact its value. You’ll need to go through an appraisal process in order to learn more about this which may take some time but is well worth it!
In our experience it will most likely come down to the condition of the property, rent being paid, and the potential ARV of the property.
The appraisal process will take into consideration these factors and others to come up with the estimated value of the property without tenants living in it.
It’s important that if you decide to sell your home, whether you have a tenant or not, make sure that there is no lease agreement still active on the property. If this does happen then notify both parties immediately so they can work together to find a suitable solution for everyone involved!
3. How to get rid of unwanted tenants
There can definitely be challenges when selling a property with tenants especially with problem or unwanted tenants.
Sometimes there isn’t a lease agreement still active on the property which is going to make it even more difficult.
In order to get rid of unwanted tenants, you need to first identify what their problem is and how that can be solved. You might find out they want more space or are looking for an apartment in your area. Or maybe they just don’t like the neighborhood?
It’s important not to bother them too much while trying to solve these problems because some people will stop paying rent as revenge against being hounded by landlords who are busy with other aspects of running their business!
If all else fails then one option could be eviction proceedings but this should always be a last resort because it can take months before anything happens especially right now during COVID as the courts are completed booked up for months and months.
Currently, in the city of Philadelphia, the eviction courts are backed up at least 6months to 1 year. This can be a very lengthy and costly process, roughly up to $6000 or more to get someone out of your property. I know, crazy right!
4. The importance of getting an independent valuation before you sell
Understanding the value of your property before proceeding is key. A homebuyer can provide an accurate market valuation to help you decide if your property might be worth the risk of taking on tenants and potentially going through a lengthy eviction process.
The other option would be to work with an independent appraiser. They will come in and assess your property, then provide an accurate market value.
We’re fortunate to have both options available for you!
-You could sell it with tenants on the inside if you can’t find someone who is willing to wait out the eviction process or pay more money upfront. That might be a better option depending on what type of time frame you are dealing with.
-On the other hand, if we work together as partners, I’ll help facilitate all aspects of selling your rental property from start to finish while giving you peace of mind that this won’t turn into another headache.
5. What are the risks and disadvantages associated with selling a property with tenants in it
There can certainly be risks involved with selling a property that has tenants in it. This can impact the sale price, and how long it takes to sell the house. But there are some advantages as well:
A tenant will take care of maintenance issues that come up while living on-site, which can help keep your home looking great for prospective buyers and make them more likely to bid higher on your home. On the other hand, you might have a tenant that completely destroyed the property as well which is VERY common.
Risks- The rental income you would have earned over time will be lost if you need to close early or don’t get enough bids during negotiations; You may not be able to find someone who is willing to wait out an eviction process or pay upfront costs since they’ll want occupancy before closing day; Inability to show the property will be a major headache and will only lengthen the time it takes to sell your property.
And lastly, you might have a squatter situation and if that is the case it can take months and months before you can get them evicted. The laws that are set up currently give the squatter more rights than the owners which are completely INSANE! So be careful, don’t let anyone stay in your property without some kind of lease or contract in place, even if it’s friends and family.
6. Should I hire an estate agent when I’m selling my house with tenants in it
Now when it comes to getting your house sold you might be wondering if it’s best to hire an estate agent or work with a local cash home buyer like Philly Home Investor?
Here are some things to consider when deciding:
– Do you want someone else coordinating everything? If so then an estate agent is a good choice or a top local real estate agent. You have to remember that they will be taking commissions on the sale, which can make your property sell for less money than if you just work with one of these other options.
– Can I afford it financially? Working with an estate agency usually means paying them more upfront and waiting longer before getting any kind of return at all. With Philly Home Investor there’s no commission taken out, and we’ll buy almost anything! So this option might be better for people who need quick cash or don’t have much in assets available (bank account balance).
– How quickly do I need to sell? With an estate agent, you might need to wait as long as a few months before your property is sold. With Philly Home Investor, it could be done in three weeks or less!
Why list the property when you can SELL IT!!!! We make the process of selling property easy and hassle-free which is why we have so many happy clients and 5-star reviews.
So if you’re saying you need to sell your investment property or rental property we’d love to make you a fair cash offer today with or without the tenants inside. We buy houses all over the greater Philadelphia region, New Jersey, and parts of Florida. For over 6 years we’ve been helping people just like you!