Challenge of Selling a Rented Home

Realtors say homeowners should not attempt to sell if they have tenants, as such an arrangement works only if they have the tenant’s cooperation. However, some homeowners need to rent out the home all the way up until the sale closes because they depend on the rental income; and in some areas, like Washington, D.C., the sale of rental property is complicated by laws requiring that tenants be given the “right of first refusal.” Homeowners need to communicate their expectations to tenants early on, letting them know what must be done to keep the property in showing condition. They might give them a discount on the rent while the home is on the market as an incentive to keep it in good condition, and they should reassure them that the Realtor will be handling the showings. However, they must keep in mind that once the tenant vacates the home, they need to have money set aside to cover cleaning and painting. Moreover, homes with tenants generally sell for less than vacant or owner-occupied properties. | Read More