How Do I Sell My Home With A Renter In It?

On May 28th, 2015, at 7:19 PM, Mike wrote:

Jeff:

I’m thinking about listing my house in Jupiter in early 2016. However, I have a renter in the house from Christmas until Easter. They are good people and I wouldn’t want to disturb them. Any ideas on how to do this or do I just wait until they leave?

Thanks,

Mike

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Mike,

Thanks for the email. I see three options for you.

1. Put on the market now and see if we can sell it to someone who will take the renter as an investment property or close after Easter.

2. Put on the market with the renter in place. The advantage to this is huge, because you won’t lose that critical part of the season. The only way to do this is to offer to renter an incentive; say a half month’s or one month’s rent off of the total if the home goes under contract while the renter is there and it closes successfully. If the renter likes this and agrees to it, the renter will make sure the home shows nicely and will become an advocate for the sale. It strictly depends on if the renter is willing to do this in a positive way. The extra time in season lets you market it to the buyer who will pay the most money. If the renter likes the idea, then this is the best option, as we don’t have to take an offer, either. The half month’s or month’s rent therefore will pay for itself. You can talk to the renter about limiting the showings to a few times a week or even once a week with one or two open houses in total. You’d be surprised. Sometimes renters with nice relationships with the landlords like to help, and if it’s structured in a limited way with an incentive, they actually like it. If they aren’t open to it at all, then leave it alone, as it would have to be their choice.

3. Wait until they leave. The least desirable option, but it might be the only choice you have if options 1-2 don’t work.

My personal opinion is to do options 1 & 2 together. The more time you have, the better the odds you will find the perfect buyer.

Hope that helps.