Selling a tenant occupied property in Miami is not an uncommon way to sell a property in this city. In fact, many investor buyers are interested in properties that are already tenant occupied. However, it’s not ideal for every type of home or condo. It’s important to have your Miami real estate agent research if this makes sense for your type of property. It’s also important to actually understand if your tenant will be agreeable to the process and cooperate throughout the listing process.
It’s important to take into consideration who will most likely be the end user of the property when it sells. For instance, if you own a condo in a building where renting is popular, then selling a tenant occupied property is super common and may be considered ideal. On the other hand, if you are selling a property where the end user will need to make the property their primary residence, then selling with a tenant can be more challenging and will limit your pool of buyers. One big reason why it may restrict the pool of buyers is that if the buyer needs financing, the lender will require that the buyer moves into the property upon closing. If there is a tenant in the property, depending on the length of the lease, that may not be possible.
If you have a tenant and you think this may be an ideal way to sell the property in Miami here are four tips to get the wheels into motion now.
4 Tips For Selling a Tenant Occupied Property in Miami
1. Make sure to establish a plan with the tenant and clear communication.
-If you put the property on the market will the tenant cooperate with showings?
-Will the property be clean for showings?
-If the tenant has pets, what is the plan for the pets during showings?
-Establish the logistics and expectations in advance.
2. Discuss with the tenant what this means regarding their lease.
Some tenants are concerned that they will be kicked out at closing. The typical Florida lease (that we use as agents) allows a tenant to complete the term of the lease. Always consult with a legal professional to be certain you understand your lease terms and if the lease allows the tenant to stay until it finishes, let them know.
3. Be respectful and make sure your listing agent is polite.
When you are a tenant, and the owner is selling the property, it is not always the most ideal situation to have strangers walking through your property. So it’s important to make sure everyone understands that this is someone’s home.
4. Is the tenant willing to allow showings and make the property look presentable?
If the tenant is not agreeable to the situation, it may make better sense to wait until their lease is finished and then list the property for sale. Some residents can make the property hard to show or worse, make the property unpresentable during showings.
In the end, if you really need to sell your property, make it attractive to the tenant to help you out. Some owners do this by reducing the rent or allowing them out of the lease early. Do what you need to get the property sold and also make the process easy for the tenant. Making the situation a win-win for all involved will allow you to sell the property easier.
Bonus Tip Two:
Before listing the home for sale, check and find out if the tenant is interested in purchasing the property. Many tenants fall in love with the places they rent but just aren’t sure how to make homeownership a reality. Have a discussion with them and see if they are interested.
In the end, selling a tenant occupied property in Miami is not an uncommon way to sell a property in this city.
Many buyers are interested in properties that are already tenant occupied. Talk to your local Miami real estate agent find out if it’s suitable for your particular property.