Can I sell my rental property with tenants in it?
Renting out property can be a profitable investment. However, there may come a point in time when selling the home makes the most sense. Perhaps you’re relocating for a job, and right now is the best time to sell the house for optimal profit. Or maybe the home is getting old, and you can no longer afford to maintain or make repairs. But what happens if you have renters living in the house when you’re ready to sell? Selling a house with tenants is not always easy when you have to consider leasing agreements and how your tenants may react.
Different variables can impact how and when you sell a property with tenants. Are there any tax implications from selling the property at a given time? Is eviction an option if you have problem tenants? What are the tenants’ rights when selling rental property in Atlanta, GA? Here are a few things you should know to be prepared.
How should I go about selling rental property with tenants in Atlanta, GA?
Many landlords cannot afford to wait for the tenant’s lease to run out before they sell the house. Selling rental property with tenants still living in it is a possibility, but you should first research state laws and establish clear communication with the tenant. But should you wait until the lease runs out or can you sell with an active lease? It all depends on your lease agreement and specific circumstances.
If You Have a Fixed-Term Lease
If you have a fixed-term lease, you pretty much have to wait until the lease expires. Tenants have the right to live on the property until the lease is up unless you can prove they have violated any lease terms or laws. You also might be able to terminate earlier if your lease agreement includes an early termination clause. Your other option include:
- Paying Your Tenant to Vacate (Cash-for-Keys Method) You might also be able to pay your tenant to vacate. The cash-for-keys method is especially effective for those looking to sell their house quickly. Depending on your relationship with the tenant, you can offer to help them move, pay their security deposit, or pay their first month’s rent at a new place.
If You Have a Month-to-Month Lease
In Georgia, it is easy for landlords and tenants to end a month-to-month tenancy. As long as your termination of the lease is not discriminatory, you can typically terminate a month-to-month lease without cause or explanation. Be sure to provide tenants with a written notice to move, giving them at least 60 days to move per Georgia law. Also, make sure to specify the date that their tenancy will end.
You aren’t required to tell your tenant about the sale of the property. However, any housekeeping measures you need to take (think: preparing for inspections or open houses) may go more smoothly if you keep your tenant in the loop. In some circumstances, you may not have to provide as much notice to move if the tenant has:
- Not paid rent
- Violated other terms of your rental agreement like having an unauthorized number of people living in the home
- Violated laws such as dealing drugs on the rental property
If You Have a Problem Tenant
A problematic tenant can compromise the sale of your home for many reasons. They may be untidy or unwilling to cooperate as you try to show your home to prospective buyers. If you schedule showings while tenants are still in your home, you can try offering incentives to get them to cooperate in staging the home for showings. For more problematic tenants that are violating laws or lease agreements, you can consider an early lease termination.
Early Lease Termination. If you can prove your tenant violated any laws or lease terms, you can proceed with an early lease termination notice. In Georgia, you must show cause or a legal reason, such as failure to pay rent or other lease term violations. By law, you are required to give the tenant as little as 24 hours or as much as 10 days to comply with the notice.
If You Have a Tenant That Doesn’t Want to Leave: How do you evict a tenant?
If you’ve complied with all laws and responsibilities as a landlord, and your tenant still refuses to leave, you may have to proceed with eviction. Here are the steps to proceed.
- Give notice. You are legally obligated to give notice to vacate your tenant.
- Initiate possession order. If the tenant doesn’t move out within the timeline specified in your notice, you are allowed to seek possession order at the court.
- Get professional notice servers. Consider using a professional process server to deliver any legal papers so that you can have evidence that the papers were served
ARBOR VIEW PROPERTIES TIP: Communication is key. Make sure your tenant receives everything in writing and don’t promise what you can’t deliver. As much as you’d like to sell your house fast, make sure your tenant is happy and agrees to the decision. Selling rental property with tenants in Atlanta, Georgia can go smoothly if done properly.
Can I sell my rental property with tenants in it?
Short answer – yes. Selling rental property with tenants in Atlanta, GA is quite common. It can be a confusing procedure as your decision to sell affects one (or more) people. But there are options to sell a house with an active lease.
Sell to a Buyer Interested in a Rental Property
Selling the property with tenants to a buyer is completely possible. A potential buyer might be interested in renting out a house in the first place. By leaving your tenant in the property, the new property owner won’t even have to find a tenant.
Sell to the Tenant
If your tenants don’t want to leave, you can talk to them about buying the property. Selling to tenants saves you the hassle of listing your property with a realtor and scheduling showings.
Sell to a Property Investor
If you want to sell a house with tenants quickly, you can sell to a property investor, like Arbor View Properties, for cash. After the property investor purchases the property, they will be responsible for honoring the tenant’s existing lease. Selling to a property investor eliminates much of your to-do list for selling a house. You won’t have to deal with the hassle of having to put your home on the market, invest in repairs, schedule showings, or even pay realtor commissions.
House Viewings While Renting Out the House
Can a landlord show a house while occupied?
Yes. Here’s how to handle house viewings while your tenants still live in the property:
- Communicate all dates and times with the tenant.
- You must get consent at least 24 hours in advance.
- Try to get your tenants to approve all showings in writing (by email, text, etc.)
- You must not take photographs of the property and personal belongings without the tenant’s consent.
Please note that your tenant is legally allowed to refuse viewings or realtor visits if they do not agree with the times of the viewing. To avoid legal issues, you must respect their decisions and proceed accordingly. When it comes to selling rental property with tenants in Atlanta, Georgia, a tenant has as many (if not more) rights as the landlord. Be cautious in how you proceed.
What are tenant’s rights when selling rental property?
Tenant-landlord rights may be different depending on the state or country your rental property is in. As a legal landlord, you should always be clear of all tenant’s rights when selling rental property with tenants in Atlanta, GA
- 60-day notice is required to be given to the tenant once the landlord decides to sell the property.
- 14-day notice is required to be given to the tenant before a first viewing is scheduled.
- The tenant needs to be aware of all dates and times of viewings.
Unless the tenant gives their consent,
- You must not enter the property before 8am or after 8pm.
- You must not schedule an appointment on a Sunday or holiday.
- You are not allowed to take photos of the tenant’s personal property.
- You must not put up the ‘for sale’ sign.
- You must not hold an auction on the site.
What happens if a tenant is uncooperative?
If the tenant refuses house viewings, you must arrange a time that’s most suitable for them. If they are refusing to communicate, you can appeal to the court. If a tenant refuses to leave the premises, see the cash-to-keys method mentioned earlier. Your other option is to evict the tenant.
What are the benefits of selling to a cash buying company?
Going through a cash house buying company or property investor like Arbor View, is probably the fastest way to sell a rental property with tenants. You’ll receive a quote in just 24 hours and you can close it whenever you want. Your house can be sold in a week with tenants still living there.
Do you need to sell your Atlanta area house fast? Get a no-obligation cash offer, by contacting Arbor View Properties today.