The Phoenix rental market is a thriving seller’s market, and you might want to sell your rental property for several reasons. However, handling the sale of the property can be tricky and awkward when your renters are still residing there.
At Service Star Realty, we have over 60 years of combined experience during which we have helped several investors sell their occupied rental properties. We know how hard it can be to ensure that renters don't feel uncomfortable and prospective buyers get a fair idea of the property they are planning to purchase.
Here are a few key tips that will help you handle the sale of a tenant-occupied rental property efficiently.
Negotiate Showing Timings with the Tenant
Provide the tenant with at least 48-hours’ notice before scheduling a showing. Tell the buyer that showing the property on short notice will not be possible, as you have to respect the privacy of the tenants. Improperly accessing the property is not only an inconvenience to the tenant, but it can result in financial consequences to the owners. Infringing too frequently or disturbing their privacy can spoil the relationship between you and your tenant and end the lease on a sour note.
Also, ask the tenant to depart the premises during the showing. Perhaps work out a scheduled day or time of the week where the tenant is amenable for you to freely schedule tours.
Help the Tenant Easily Maintain the Property
If your tenant is going to continue living in the property after the sale, they are likely to continue to take care of the maintenance on their own. However, if they are not going to continue living there, they may neglect regular maintenance and upkeep of the rental. In such a scenario, take steps to ensure the maintenance is as stress-free as possible, to make it easy for your tenants and still keep the property well-maintained.
Ensure That You End the Lease Properly
Selling a home becomes easier when the tenants are living on a month-to-month lease. Landlords are expected to give the tenants a minimum of 30 days' notice to vacate the home. If the month-to-month residents are unsupportive or refuse to cooperate in the process, you can serve the non-renewal notice to end the lease and get the rental property ready for sale.
Fixed-term leases can prolong the process of selling your tenant-occupied property in Phoenix. If your lease does not have an early termination clause, and the residents do not wish to leave, the residents have the right to stay in the rental house as long as they abide by the terms of their lease.
If the sale of your home is unduly prolonged due to the occupancy, perhaps offer an incentive and negotiate for your fixed-term lease to terminate early.
Evict Bad Tenants
Bad tenants can be extremely troublesome when you are showcasing the positives of your home to potential buyers. They might leave the house dirty for the showings, use items irresponsibly, or even refuse to move out on the expected date.
If you are not on great speaking terms with these tenants, at such times, you must make an effort to mend your ways with them. Look for the early-termination clause in the lease, or try to negotiate one. If they still don't show any sign of improvement, you can evict them if there is a material breach of the lease, and then proceed with preparing for the sale.
When you wish to sell your tenant-occupied Phoenix rental, you need to be smart, considerate, and understanding of the tenants’ and the buyer’s requirements. At Service Star Realty, we guide investors like you to sell their tenant-occupied properties.
If you'd like to discuss the details about your pre-rented Phoenix home and ways to sell it sooner, contact us at Service Star Realty.
Service Star Realty
2929 East Camelback Road #119, Phoenix, AZ 85016
(480) 426-9696
