Do you need to sell your rental property with tenants in San Antonio? The process isn’t always that easy depending on your lease and depending on the tenants that are in place. Learn more about how to do it in our latest post.
Can You Sell A Rental Property With Tenants In San Antonio, TX?
The short answer is – Yes.
Selling a rental property with tenants is something that is not unusual in San Antonio, TX, but there are some additional things to consider when your decision impacts other people and may require their assistance.
Whether you have inherited the property, your tenants damaged the property or stopped paying rent, or you may just feel like its time to cash out and move on from being a landlord. Whatever your reason for selling, you’ll want to know your rights, the rights of your tenants, and the different options for selling a rental property while it still has tenants.
Ethically, when selling your house with tenants in San Antonio, you’ll want to make the transition as easy as possible, for the tenants and for you.
But, it is a business and if you are losing money or need to sell for other reasons, don’t hold on to the property longer than you have to. The longer you hold on to a property that you know you should sell, the more stressful and aggravating it will become.
However, navigating the sale of a rental property with tenants in San Antonio can be complex. It’s essential to navigate the legal and ethical considerations associated with selling a property that is still occupied by tenants. Moreover, you may need to coordinate with the tenants to allow potential buyers to view the property, which can require sensitive handling to ensure minimal disruption to their lives.
Communication with your tenants is key. Keep them informed about your intentions to sell the property and discuss any potential changes that may affect them. Providing clear information about the sale process and addressing any concerns they may have can help foster a cooperative relationship during the sale process.
Consulting with a real estate professional who has experience in selling rental properties with tenants can also be beneficial. They can provide valuable insight into local market conditions, assist you in determining an appropriate listing price, and offer guidance on navigating the complexities of selling a tenant-occupied property.
In summary, while selling a rental property with tenants in San Antonio is possible, it requires careful consideration of legal, ethical, and practical factors. By proactively addressing the concerns of both the tenants and yourself, you can facilitate a smoother transition and achieve a successful sale outcome.
Ways to Sell a Rental House with Tenants
# 1 Wait for the Lease to End – If waiting is an option, consider holding off on the sale until the lease is up. Then, let your tenants know that they will need to relocate as you will be putting the house on the market. Make sure that you give the proper amount of notice according to the lease.
Helping with moving or offering to serve as a reference can help soften the blow, especially with a long-term tenant. If the sale isn’t needed immediately and you want to spend the time and money on a listing, waiting until the house is vacant can be a good option.
# 2 Sell with a Lease in Place – Selling to a landlord who is looking for another rental property is another possibility. This is often possible when you have a great long-term tenant who would like to continue to rent the property. Any additional documentation that you can provide showing the length of lease and good payment history will make your property more attractive to a potential landlord buyer.
# 3 Sell to the tenant – Aside from you, there are not many people who know the house the same way you do. If your tenant has been there for a while, they will have likely developed an attachment not only to the house but to the community where they are living.
If the house has truly become their home, they may be interested in buying the house from you. Before you spend time and money on repairs and the listing process talk to your tenants to see if there is any interest.
# 4 Sell With A Realtor – If you plan on listing the house with a San Antonio real estate agent you will either need to wait until the tenants have moved out or have their cooperation in showing the home.
Sometimes, the tenants will do a great job of keeping the property clean and will accommodate realtors showing the property. Unfortunately, this is not always the case and it can be difficult for a realtor to sell a property that is occupied by tenants.
You don’t want to have a tenant sabotage a showing whether intentionally or unintentionally, so you will need to make sure they are on your side and that you have set your expectations upfront. To help you do this, you can consider offering reduced rent in exchange for their time, property maintenance, cleaning, etc. You could also offer reduced rent as an incentive to get them to move out. Or maybe offer to pay the first months rent at their new place.
Selling your house with tenants can be very inconvenient for them and offering financial or other such incentives can help make the transaction an easier one for them.
# 5 Sell Directly to An Investor – Selling your house directly will eliminate the need to clean, market, stage, and show the home. Avoiding these can save you time and money because these can be difficult when there are tenants living in the house.
In order to successfully sell your house directly, you will need to find the right buyers who are willing to take on a house with tenants already in the property. In fact, there are many investors who will see this as a perk. One less thing they have to do if there is a quality tenant in place and having an instant income, without any costs for renovating, cleaning, can prove to be valuable to them.
Professional home buyers also have the knowledge and expertise to handle more difficult tenants. They are familiar with the eviction process and will be willing to buy the property as-is and this can save you a lot of time and money when you are dealing with a difficult tenant.
# 6 Cash for Keys – Offering Cash for Keys just means offering your tenant money to move out of the property so that you can more easily sell the property. This is not always just cash, it can be helping with moving, forgiving rent, or helping with the deposit on a new place.
It may involve a larger investment than you would prefer if you want to sell because you need the money quickly. However, it is a very effective way to resolve the situation as soon as possible and with a good resolution for both parties.
# 7 Send a Notice to Terminate the Lease – Make sure you review the lease first. If the tenant has broken the lease you may be within your rights to terminate the lease, but you can’t just terminate a lease without good cause. Terminating the lease will set an end date for the tenant to be out of the property.
If, on the other hand, the tenants have been there for a long time and have been punctual in payments and property care, it would be better to consider the alternatives mentioned earlier.
Additionally, you must take into account, especially when tenants have been good, that they also have rights which should not be violated, or there could be unfavorable consequences for you. Later, we will discuss this topic further.
# 8 Eviction – We wish that all tenants were perfect and that we had a great relationship with all of them, but we all know that this is not always the case. Filing for eviction and completing the eviction process is an option when you are not able to work with the tenants in a way that works for both of you.
Make sure you educate yourself about the eviction process and follow all the rules and guidelines for posting notices and filing with the courts. The eviction process is going to cost you time and money, but sometimes it is the only option you have.
If you are unfamiliar with the process or find it too complicated, you might reconsider the idea from point #5, selling directly to an investor. This way, you can avoid this tedious process and achieve an effective and quick solution to your problem with bad tenants.
Review the Lease
Take the time to carefully review your lease. Or have an experienced professional review the lease with you.
Is it a month to month lease? Most month to month leases state the amount of notice that is necessary to end the lease. This is often 30 or 60 days.
Is it a long-term lease? Most long-term leases cannot be canceled without good cause. Good cause may include things such as non-payment of rent, un-authorized occupants living on the property, or criminal activity in the home.
Tenants Rights
Before you decide to sell your house with tenants in San Antonio, make sure you are familiar with the tenant’s rights. If you are asking them to vacate the property, make sure you are giving them the right amount of notice and are operating according to the law.
You will need to have a termination clause in your lease allowing you to end the lease early if you give the correct notice. Selling your house with tenants in San Antonio can seem difficult, but if you adhere to the legalities and work with the right type of buyer, the process can be done quickly and without much disturbance to anyone’s lives.
If possible, try to work with your tenants to come to a solution that works for both of you. This is not always possible, but when it is, it makes things much easier for you and the sale of your rental property.
How can we help?
We are professional home buyers in San Antonio, TX and we purchase homes directly from sellers in all types of situations including selling rental property with tenants.
We will make you an all-cash offer for the home as-is without you having to make any repairs. We do not need to do costly inspections of the property or require appraisals in order to purchase your home.
We have helped many homeowners who wanted or needed to sell a house quickly and easily. If this is you or even if you just have a few questions that you would like to ask, we would be happy to speak with you and see if we can help!
Selling your house with tenants in San Antonio may pose challenges depending on your circumstances and the nature of your tenants. However, with careful planning, thoughtful action, and adherence to legal requirements, it can be accomplished smoothly. We are eager to discuss your options with you and provide further insights into the process. Feel free to reach out to us for a consultation; we are here to assist you every step of the way!