If you take a look at your local market, you may decide that now is a great time to sell your house. On the other hand, if you have people living in the house, should you go through with the sale? In general, there are no federal, state, or local laws that prevent you from selling a house that currently has renters in it. What do you need to know?
The Lease Will Carry Through With The Sale
The lease will carry through the sale. Essentially, the new owner will inherit the current lease agreement you have with your renters. They cannot change the agreement or kick them out unless there is a provision in the contract that allows them to do so. You also need to deliver the security deposit that your renters paid to the new owner.
The Benefits Of Selling An Occupied Property
There are also a few reasons why you may want to sell a property that is occupied. For example, another person looking for an investment property may like the idea of not having to find their own renters. When they see that people are already living in the home, they will know that they should have an easy time collecting rental income.
Furthermore, you might be able to get rid of some renters that have been difficult for you. Maybe a new owner might have better luck getting the renters to settle down. If you are not living in the local area, this could be a way to alleviate some stress as well.
The Drawbacks of Selling An Occupied Property
There might be a few challenges that you encounter when you try to sell an occupied property. Remember that you are not allowed to harass your residents, so you may have to coordinate visitors on their schedule. This can make it harder for you to find time slots to show the property to a potential buyer. In addition, if the house is a bit messy, you may not get the offer you are looking for. You cannot simply force your residents to clean up the property, and a dirty home could give someone ammunition to give you a low-ball offer. Think carefully about whether you want to show a home that is occupied.
