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Time to Sell; How to Break the News to Your Renters

Spring Hill Investor Meeting with RentersInvesting in Spring Hill single-family rental homes may begin with buying properties, but it’s important to keep your end game in mind. In the future, you will be forced or want to sell your rental homes, and a few of them may still be occupied. Selling rental property with existing tenants can be a true struggle. Your renters may have various potential responses to the news, and you probably would not be able to anticipate their reaction. But if you approach your tenants in the proper way, you can help lessen some of their worries and even get them on board with the selling process.

Getting ready to speak to your tenant about selling a rental house requires some thorough planning. It is also advisable to do some research into local laws. Landlord laws can vary widely from place to place and may place restrictions on property owners looking to sell an occupied rental home. Before you mention the proposal of selling with your tenant, make sure that you understand the laws in your area and that your next steps do not violate the law or your tenant’s rights. You have to think about your tenant and what you know about them. That can help you to plan out how and what you say to them more carefully.

When you have a clear knowledge of how you want to approach your tenant, it’s a great way to discuss your plans with them in person. While you can and should notify your tenants about the property’s new status in writing, things will likely go much easier if the first time they hear about it is from you directly. Preferably, think about creating an in-person meeting or video conference with your tenant. Explain your plans to sell the house, and then allow them to ask questions.

You may want to try and anticipate their questions ahead of time so that you have answers ready. Most of the time, tenants would want to inquire if they will be forced to move when the property sells, even if their lease hasn’t expired. They will probably want to know who will be buying the house, even though you may not know that at first. If you are selling to another investor, try to share as much as you know about the new owner’s plans, including whether the new owner will assume the current lease or require new terms. If you don’t already have a buyer, try to ask your tenants if they are interested in buying the property themselves. They may want to reside in the home so badly that they are willing to buy the property from you directly.

Conversations about selling your rental house can be very emotional for your tenants. Ultimately, selling the home they live in likely means considerable changes for them. They may even feel resentful or betrayed. Those can be tough emotions to manage. If your tenant does become emotional or upset, do your best to stay calm.

Together with comforting them, try to offer them as much time as you can to adjust to the news of the impending sale. Giving information about the expected time frame can help give your tenant a sense of how the next few months will proceed and encourage them to start making any necessary plans. From there, as the transaction begins to proceed, be sure to send regular updates about the sale and tons of notice if you need to enter the property with a potential buyer.

If you treat things well and maintain open lines of communication, your tenant may not only accept your plans to sell; they may even be willing to participate in the process. With the proper communications and assurances, your tenant could help make the selling process a smooth and efficient one. But irrespective of how they react or feel, it is imperative to respect your tenant’s privacy and to obtain their permission before showing the house.

Are you feeling a little overwhelmed with all the tasks and responsibilities of property management? See what Real Property Management Connection can do for you! Give us a call at 352-428-2316 or contact us online to get more information.

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