Pros and Cons of Having Renters in Place When Selling

 

I'm selling my rental property.  Should I or shouldn't I get rid of my renters? 

Here are the pros of selling a home with renters:

1. Little to no preparation needed to sell the home.  
2. Sell " As Is " 
3. Investors might like a renter in place

Here are the cons:

1. Owner occupied buyers do not want to buy homes with current leases in place because they fear the leasee could damage the property and/or not get out.  Eviction process is long and expensive.  With a lease in place you have substantially decreased your Buyer pool.
2. Only 30% of sales are all cash buyers. (mostly investors) Your home will appeal to more of these folks and not bring you top dollar.  Investors want a deal.
3. Some investors may NOT want a current tennant in place because they want to control/review/choose the leasee.  I got burnt on a deal like this one time.
4. You cannot properly prepare the home.
5. You cannot properly show to potential Buyers, thus reducing your pool of qualified purchasers again.  As the pool is reduced so does your sales price. Simple supply/demand
6. With restricted showing some agents won't show the home.  You want the home readily available.

New carpet, paint, and baseboards can be installed in one week.  The home would only take a few days to sell. If you have any money at all to invest to increase your rate of return I would advise this highly.

If you have cooperative Tennants, and a property in very good condition, as long as the tennants are on the way out during escrow, you shouldnt have a problem.  Buyers will make offer subject to the home being vacated. If this is your situation then you may not need to wait until they are out to sell the home.
 
From the list you can decide what works best for you and your situation.  Either way I can help sell your home quickly in this market.  Please contact me to discuss listing your home for sale in the Livermore and Pleasanton area. 
 
Natalie Swanson    925-580-9829

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About the Author Bill

I help small businesses be more successful.

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