How to Sell a Property with Tenant Issues to a Cash Buyer

When a Property is Sold, What Happens to an Existing Lease?

When a tenanted rental property is sold, the current lease is transferred to the new owner. Unless the new owner and renters agree to changes, the lease terms, including the rent amount and duration of the tenancy, stay unchanged. The terms of the existing lease bind the new owner and cannot ask the tenant to depart or raise the rent until the contract is up for renewal. However, if the current renters have decided to leave rather than stay, you can create a lease modification to change the lease termination date. 



A lease amendment is a legal document signed by the landlord and tenant that modifies the conditions of the lease.

How to Sell a Property with Tenant Issues?

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Auction

Many people who purchase and sell real estate are unfamiliar with auctions. For sellers, the assumption is that auctions are a “last resort” for getting rid of a property that cannot be sold conventionally and will result in a low selling price. Meanwhile, cash buyers are more inclined to consider auction if they have done their study thoroughly, have cash on hand, and have a strong appetite for risk - which many potential landlords possess. Here are the benefits of selling through an auction. 



• Fast: This is the most important advantage of auctions. If an offer is accepted, the buyer is legally obligated to execute the transaction within a particular time frame (typically 28 days).
• High likelihood of sale: Over the last ten years, around 77% of homes put up for auction have sold. When you consider that estate agents only sell around half of the homes on their books, this is a pretty good success rate - and doubly so because many properties that come to the auction may have some form of difficulty that prevented them from being sold on the open market.
• Transparent: Bids are made in public, and there is the possibility of competition bidding driving up the price.
  

Be Open and Honest with the Buyer

Being honest with potential cash buyers can increase the likelihood of a successful transaction. Make it clear in your listing description that the home is occupied by a tenant so that interested buyers are aware. To ensure a smooth transition, prioritize disclosing the specifics of any existing lease agreements and management practices (such as the rental property management software you use). 

Check for Any Lease Violations

If your tenant will remain after you sell the property, make sure any lease violations are handled before closing. This includes recovering any past-due rent payments, as a late tenant can have an impact on the outcome of your sale. If you don’t manage the property yourself and you don’t have a direct relationship with the tenant, ask the letting agent if there have been any lease violations.

Check That the Property is in Good Condition

The state of your property can significantly impact the outcome of your sale. Since cash buyers don’t necessarily expect you to repair your property, you may choose not to do any repairs. The issue with this is that the buyer will give you the lowest offer. A buyer may alter their mind if too much upkeep has been neglected or there is excess property damage. 

Before you sell my house fast for cash Allentown PA complete some activities such as gardening and interior cleaning to keep the house in good condition. These services may also be more dependable and constant than enlisting the assistance of your tenants.  

Make Showing Times Available

For showings, tenants require at least 24 hours (or longer, depending on local landlord-tenant rules regulating notice of entrance). This advance notification also allows them time to prepare the home, which may help them create a better impression on a buyer. When scheduling a showing with a cash buyer, remember your tenant’s schedule. If you know your tenant works from home three days a week, avoid scheduling tours on those days.

Maintain Communication with Your Tenants

When you choose to sell my house fast, Allentown, Pennsylvania, communicate your plans to your tenants as soon as possible so that they have enough time to decide what they want to do. Inform them that you intend to sell the property and what they may expect from the process in general. Once they’ve formally purchased the home, any prospective purchasers can also assist in keeping your tenants informed. They can send a landlord introduction letter introducing themselves, sharing contact information, and outlining any modifications they intend to make.

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