How To Sell a Home With a Tenant

Having worked a lot with buyers lately, I've come across an issue that has a profound impact on the sale of the property that many seller agents don't appear to be properly addressing with their clients - namely, how to properly sell a home with a tenant in residence.

Ideally, it would be best to have the home vacant rather than having a tenant there.  However, most people can't afford the loss of income during the transition period.

While many renters maintain and keep their home clean, in general, a property is devalued with a renter not just because of wear and tear, but also because agents and buyers are less likely to view a property with a tenant and, even if they do, quite often the restrictions involved in scheduling a showing are prohibitive. In Ontario, a notice period of 24 hours is required to be given to the renter for entry.

Additionally, sellers must remember that renters consider it their home and not an "asset" and, therefore, may be reluctant to co-operate to the advantage of the seller.  Just by doing or not doing simple things, a renter can potentially hold up a sale for a long time, or affect the final selling offer if and when it does come in.

GETTING RENTER CO-OPERATION

In order to show a home properly and take advantage of every potential buyer, the tenant should be ensuring the home is clean and tidy; dishes and laundry done, beds made, etc....  Ideally, the tenant would be open to allowing shorter notice periods than 24 hours.

But how does a seller get a renter to help sell the home - provide an incentive!

One idea could be to provide a rebate of half of the last month's rent back to the renter if it sells in the first month.  Perhaps a gift certificate for dinner for two each month while the property is on the market.

The point is that the seller needs to recognize the importance of the renter in the selling process. 

In order to make it as easy as possible for showings and to get the tenant to maintain a clean and tidy home, they need their co-operation.  And you can only get that by showing the tenant that you appreciate their help and respect that the sale of "their" home is a major transition.

If you have any questions about the sale process or would like a market evaluation of your home, please contact me today.