Telling Tenants We're Selling?
As some of you know we are planning on selling the old homestead within the next 1-2 months. Currently,we are trying to “declutter” and all that jazz. The plan is to have some agents come in Feb to give their market evaluation. What and when do I tell my tenants that we are selling our…
As some of you know we are planning on selling the old homestead within the next 1-2 months. Currently,we are trying to “declutter” and all that jazz. The plan is to have some agents come in Feb to give their market evaluation. What and when do I tell my tenants that we are selling our house? Their lease is up on June 30.
you have to give your tenants a 5 day notice who ihe security deposits were turned over to that is notifying them of a new owner.
Don’t list the place in Winter but don’t wait until June 30. I’m sorry, that’s not good advice. The market always slows to a screeching halt in late Summer. Always. If you start June 30 that gives you only one month to sell the place before you’re sitting there for 6-8 weeks through late Summer with no action looking rejected and unwanted.
Well, let’s assume your tenants are good people and have helped you pay your mortgage and you have had a great business relationship. Tell them right now. This gives them the heads up on what to do and gives you good karma. It also gives you a chance to discuss the sale with them, conversations with buyers etc.
Let’s assume that your tenants are not so good and you are afraid they will stiff you now. Yes, this is possible. Yes, it has been done before. This is why we love good tenants because they work with you, you work with them. It is still worth it to talk to them because they could become your worst nightmare and a deal killer if they go on the rampage. Talk to them and level with them, your best policy. Depending on the buyer, you may or may not want the building empty, but knowing what is going to happen will make tenants more cooperative with you and willing to work with you.
About inheriting tenants, I got two sets of tenants. One was great, many years later, she is still there, a real solid citizen and excellent tenant. The other set, well, I wanted to live in the duplex… so I had no intention of renewing that lease anyway (which I told them with 5 month’s notice) but this woman and “friends” were the straight out of Fellini’s Satricyon. You can’t make some shit up. She became the stuff of legend. Family and friends still beg for M… stories. She was haunted my dreams /nightmares for longer than I care to admit, she and her “friends and guests” finally moved with the gentle prodding of New York State Tenant Landlord court and she rode off into the sunset on her motorcycle. Bye.
So it can work both ways. But it is always best to TRY to work with everyone.
I’ve been in this situation from both perspectives. My husband and I were tenants in a house that was sold, and we inherited tenants in the house that we bought in 2007. I would definitely tell your tenants that you are selling your house as soon as it is on the market. If you want to have an openhouse then you will need to give them notice so that they are away during the viewings. I agree with dittoburg that you can then put them on a month to month rental agreement after June 1st to allow the buyer to decide if they want tenants in place or if they want the place vacant.
When our first landlord decided to sell he did something that most would advise against – he signed us up for a new 1 year lease so that the new buyer would have to keep us. He thought that the house would be more appealing to a new buyer if it had good tenants paying market rate rent. He found a buyer who agreed with him and we lived with our new landlords happily for 5 more years.
We also liked the idea of buying a house with tenants in place, but our experience on this side of the coin has not gone so well. The previous owner did not deal well with the news of the sale. He tried to hide it at first and then once it came out he let his broker communicate with them on any questions that they had rather than dealing with them directly. This resulted in quite a bit of resentment. When we moved in they were extremely nervous about our plans for the apt. (as we were when we went through it ourselves) and so they were relieved when we told them that they could stay. But some of that resentment that they felt over how the former owner handled things carried over to us. Things are fine now, but it took a while for them to relax around us.
I have great tenants as well and have told my tenants that I would totally recommend that any new buyer keep them if they are looking to have the rental income. I also told my tenants that I would let them know as soon as I have a signed contract, that way, they would have about 2 to 3 (or more) months to find a new place before the purchase closes. I agree, do not blindside the tenants. As I said above, I told them as soon as it was officially on the market and have kept them in the loop about showings, open houses, etc.
Speaking as a tenant, it’s only right and fair to tell them. their lives are going to be affected just as much as yours and its no fun being blindsided. Having been in that situation, I can say it was no fun, cost me a lot of money and was enormously stressful. I was a good tenant who always paid on time, the landlord was a real s.o.b. Another tenant in the same building was an elderly lady who lost her home of over 30 years.
CW – email me at christineb1975@hotmail.com
CW, having tenants installed is a mixed bag. Hear a couple of horror stories before you decide you want tenants that you didn’t choose.
(Not saying that the OP’s tenants aren’t delightful. Just saying that one person’s delightful tenant has the potential, in theory, to be another person’s nightmare tenant)
gemini10 – where is it, what is it, and how much would you ballpark it at? I’d love to own someplace with good tenants already situated. 🙂