From the Forum: How to Tell Your Tenants You're Selling?
A Brownstoner reader is planning to sell her house, and isn’t sure how to inform the current tenants. crownheightmrs writes: We are planning on selling our house next year and need to do some work in our rentals before listing. We’ve been overly generous with our tenants, raising their rent once in five years and…
A Brownstoner reader is planning to sell her house, and isn’t sure how to inform the current tenants.
crownheightmrs writes:
We are planning on selling our house next year and need to do some work in our rentals before listing.
We’ve been overly generous with our tenants, raising their rent once in five years and they are both easily paying $800 – $1000 under market. The one time we did raise the rent, we also switched to month to month leases…they were not happy about the increase and the new lease in spite of the enormous discount they receive. We have an open electrical permit that we have not been able to close out since we have not been allowed to do the work in one of the units for two years. On the other hand, they pay on time every month and are generally good tenants.
My question is, how do you notify everyone of your intent to sell and how much notice do you give them? We would have to ask one of the apartments to move out in order to do the work but not necessarily the other. This part concerns me…since they are certainly going to have to cough up a sizable amount more per month than what they are paying now. I don’t want to be the bad guy if we say one has to go but the others can stay. Is it better to ask everyone to leave to do the work and then not have to deal with open houses, etc?
Have you had to cut ties with tenants before selling a home? Or have you been on the tenant side of the situation? Share your thoughts in the original post.
Have answers? Need help with something? Visit the Brownstoner Forum.
[Photo illustration: Barbara Eldredge]
I recommend talking with your lawyer prior to giving notice. They may not like this, especially having rents below market rate, plus everyone knows how horrible it is to look for another place. Talk with your lawyer, these nice tenants can make your life miserable, month to month lease or not.
Also agree. It’s hard to give tenants legal notice, especially if you like them. But you have been extremely generous and you can’t allow too much leeway or they might take advantage of your kindness. Then it’s Housing Court to get them out, and speaking from experience, it’s the seventh level of hell. You don’t want to do it unless absolutely necessary. And do not offer them money to leave! It’s not necessary.
Your tenants are not your business partners. They have a lease which spells out the length and terms of their tenancy. Give them 3 month’s verbal or written notice and make it clear that you need the unit vacant by a specified date. Unfotunately, the landlord-tenant relationship cannot always be smooth. And do not entertain the thought of paying your tenants to leave.
Totally agree. Your tenants don’t own the property and they are not your business partners. Be very careful about giving them too much power.