Selling a House with Tenants in it.
- Thread starter smack123
- Start date
It depends on which province you`re in.
Many landlord/tenant related questions are specific to provance. Please update your profile so we know of where you speak.
Hi,
Yes, the rules depend in the province but I`ll take a stab at #3.
It really depends on the buyer. As an investor, I prefer inheriting (good!) tenants. If it is vacant, it is a little more work but typically our PM is onboard from day 1 so we can get an early start on marketing.
As a first time home buyer, obviously you would not want tenants so a seller would perhaps need to start that eviction process early (in AB it`s 3 months).
So...it really depends on who you are marketing towards and who buys your house.
Greg
QUOTE (smack123 @ Sep 26 2008, 10:34 AM) 1. What are the rules?
2. Do they have to be given notice?
3. Is it harder to sell a house that has tenants in it?
Thanks.
Yes, the rules depend in the province but I`ll take a stab at #3.
It really depends on the buyer. As an investor, I prefer inheriting (good!) tenants. If it is vacant, it is a little more work but typically our PM is onboard from day 1 so we can get an early start on marketing.
As a first time home buyer, obviously you would not want tenants so a seller would perhaps need to start that eviction process early (in AB it`s 3 months).
So...it really depends on who you are marketing towards and who buys your house.
Greg
QUOTE (smack123 @ Sep 26 2008, 10:34 AM) 1. What are the rules?
2. Do they have to be given notice?
3. Is it harder to sell a house that has tenants in it?
Thanks.
QUOTE (smack123 @ Sep 26 2008, 10:25 PM) Apologies - I live in Nanaimo, BC, and my revenue property is located in Fort Saskatchewan, AB
It depends on the type of contract that the current tenants signed. Usually the tenants need 3 months notice.
But it really depends on what your market strategy is. Do you want to market your house as a revenue property? Or, do you want to target home owners? It would be wise to notify the tenants first (give them proper notice) anyway. Have you thought about raise the rent so that it would be very attractive to investors? If you decide to market as a revenue property with good tenants then you would also save on some of the renovation cost which you would have to spend on when targeting homeowners (make it more desirable). Something to think about. It`s all about the numbers.
Yes, it is harder to sell a place with tenants from viewing perspective, as you are required to give 24-hour notice if you are going to be entering the tenant`s place. This will make your realtor`s showing more difficult. However, a cash-flow property is also very popular among investors.
It depends on the type of contract that the current tenants signed. Usually the tenants need 3 months notice.
But it really depends on what your market strategy is. Do you want to market your house as a revenue property? Or, do you want to target home owners? It would be wise to notify the tenants first (give them proper notice) anyway. Have you thought about raise the rent so that it would be very attractive to investors? If you decide to market as a revenue property with good tenants then you would also save on some of the renovation cost which you would have to spend on when targeting homeowners (make it more desirable). Something to think about. It`s all about the numbers.
Yes, it is harder to sell a place with tenants from viewing perspective, as you are required to give 24-hour notice if you are going to be entering the tenant`s place. This will make your realtor`s showing more difficult. However, a cash-flow property is also very popular among investors.
QUOTE (TommyK @ Sep 27 2008, 02:20 AM) It depends on the type of contract that the current tenants signed. Usually the tenants need 3 months notice.
But it really depends on what your market strategy is. Do you want to market your house as a revenue property? Or, do you want to target home owners? It would be wise to notify the tenants first (give them proper notice) anyway. Have you thought about raise the rent so that it would be very attractive to investors? If you decide to market as a revenue property with good tenants then you would also save on some of the renovation cost which you would have to spend on when targeting homeowners (make it more desirable). Something to think about. It`s all about the numbers.
Yes, it is harder to sell a place with tenants from viewing perspective, as you are required to give 24-hour notice if you are going to be entering the tenant`s place. This will make your realtor`s showing more difficult. However, a cash-flow property is also very popular among investors.
I concur here .. harder to sell to owners with a tenant in it .. especially one that knows he may be asked to leave !
Assuming you wish to sell to homewowners, and assuming tenant is "clean" i.e. not a messy house, and assuming it shows well .. I`d give the tenant an incentive of 2-3 month rent if they leave early, i.e. when you tell them to, as opposed to 3 months notice. So, for example, the house is listed now (Sept 2008) and sells for Dec. 1 with conditions waived Nov. 15, you tell them Nov. 16 to leave by dec 1 or dec 31 .. and they get 3 month rent cash when the leave the house clean. This has to be in writing with the tenant as he has to agree to it .. you cannot force it .. but you can tell them "I may ask you to leave in december to leave by March)" .. the risk here is that the tenant is bothered too much, pissed off and leaves anyway, and the hosue is now vacant and unsold .. so proceed carefully and intelligently !!
But it really depends on what your market strategy is. Do you want to market your house as a revenue property? Or, do you want to target home owners? It would be wise to notify the tenants first (give them proper notice) anyway. Have you thought about raise the rent so that it would be very attractive to investors? If you decide to market as a revenue property with good tenants then you would also save on some of the renovation cost which you would have to spend on when targeting homeowners (make it more desirable). Something to think about. It`s all about the numbers.
Yes, it is harder to sell a place with tenants from viewing perspective, as you are required to give 24-hour notice if you are going to be entering the tenant`s place. This will make your realtor`s showing more difficult. However, a cash-flow property is also very popular among investors.
I concur here .. harder to sell to owners with a tenant in it .. especially one that knows he may be asked to leave !
Assuming you wish to sell to homewowners, and assuming tenant is "clean" i.e. not a messy house, and assuming it shows well .. I`d give the tenant an incentive of 2-3 month rent if they leave early, i.e. when you tell them to, as opposed to 3 months notice. So, for example, the house is listed now (Sept 2008) and sells for Dec. 1 with conditions waived Nov. 15, you tell them Nov. 16 to leave by dec 1 or dec 31 .. and they get 3 month rent cash when the leave the house clean. This has to be in writing with the tenant as he has to agree to it .. you cannot force it .. but you can tell them "I may ask you to leave in december to leave by March)" .. the risk here is that the tenant is bothered too much, pissed off and leaves anyway, and the hosue is now vacant and unsold .. so proceed carefully and intelligently !!
QUOTE (thomasbeyer2000 @ Sep 27 2008, 08:39 AM) I concur here .. harder to sell to owners with a tenant in it .. especially one that knows he may be asked to leave !
Assuming you wish to sell to homewowners, and assuming tenant is "clean" i.e. not a messy house, and assuming it shows well .. I`d give the tenant an incentive of 2-3 month rent if they leave early, i.e. when you tell them to, as opposed to 3 months notice. So, for example, the house is listed now (Sept 2008) and sells for Dec. 1 with conditions waived Nov. 15, you tell them Nov. 16 to leave by dec 1 or dec 31 .. and they get 3 month rent cash when the leave the house clean. This has to be in writing with the tenant as he has to agree to it .. you cannot force it .. but you can tell them "I may ask you to leave in december to leave by March)" .. the risk here is that the tenant is bothered too much, pissed off and leaves anyway, and the hosue is now vacant and unsold .. so proceed carefully and intelligently !!
Good strategy. Give tenants an incentive for leaving the place "clean" for showing.
Assuming you wish to sell to homewowners, and assuming tenant is "clean" i.e. not a messy house, and assuming it shows well .. I`d give the tenant an incentive of 2-3 month rent if they leave early, i.e. when you tell them to, as opposed to 3 months notice. So, for example, the house is listed now (Sept 2008) and sells for Dec. 1 with conditions waived Nov. 15, you tell them Nov. 16 to leave by dec 1 or dec 31 .. and they get 3 month rent cash when the leave the house clean. This has to be in writing with the tenant as he has to agree to it .. you cannot force it .. but you can tell them "I may ask you to leave in december to leave by March)" .. the risk here is that the tenant is bothered too much, pissed off and leaves anyway, and the hosue is now vacant and unsold .. so proceed carefully and intelligently !!
Good strategy. Give tenants an incentive for leaving the place "clean" for showing.