If the time has come to sell your real estate property, there many factors to consider before listing. Of course, you’ll want to take a look at the current real estate market and weigh the costs and benefits of listing now versus later to get the best return on your investment. But if your property currently has tenants, the market may not be your most important consideration when deciding whether or not to list. With an occupied investment property, you’ll also want to factor in a few more things before listing.
#1 – Understanding Your Legal Obligations
First and foremost, it is important to understand your legal obligations as a landlord before deciding whether to list your property with tenants. Depending on where you are located, you may be required to give your tenants a certain amount of notice before selling the property. This is to give them time to find a new home to live in and to avoid disrupting their lives unnecessarily. It is important to consult with a real estate lawyer or your local housing authority to understand your legal obligations and to ensure that you are following the proper procedures.
#2 – Considering the Impact to Your Tenants
Another important factor to consider before listing your investment property is the impact it could have on your tenants. If your property is listed for sale, it is likely that there will be a lot of foot traffic as potential buyers come to view the property. This can be disruptive and stressful for your tenants, especially if they are not expecting it. It is important to communicate with your tenants and let them know what to expect during the sale process. If you’re not sure how to approach this conversation or what you should include, consider bringing your real estate professional to go over everything with them. That way, if they have any questions, you’ll have trusted, experienced answers on-hand!
#3 – Considering the Impact on Sale Price
When considering whether or not to list with tenants, it is also important to consider the potential impact it could have on the sale price of your property. If your property is occupied, it may be more difficult for potential buyers to visualize themselves living in the space. This can make it harder to sell the property, and it may potentially impact the sale price. If your property is vacant, potential buyers will be able to see the property in its entirety and may be more likely to make an offer. On the other hand, if you plan to market it as an investment property for sale, showing that it is currently occupied may interest buyers considering real estate investing. This is an important discussion to have both with your tenants and with your REALTOR® when discussing a marketing plan.
In conclusion, whether or not you should list your real estate property with tenants in it will depend on a variety of factors. It is important to consider your legal obligations, the potential impact on your tenants, and the potential impact on the sale price of your property. Ultimately, the decision will depend on your individual circumstances and should be made in consultation with a real estate lawyer or other professional.