Whether you’re looking to move on from your current rental property or you’ve inherited a property with tenants, you may wonder – can I sell my rental house with tenants in it in Virginia? The answer is yes, but there are a few restrictions and rules. Here’s what you need to know about selling a rental home with tenants in Virginia.
Do I Have to Notify My Tenants?
Yes, you must give your tenants at least 60 days’ notice before you sell the property. This is so that they have time to find a new place to live if they need to. You should include information about the sale in your notice, such as the date of the sale and who the buyer will be. If they have a fixed-term lease, you’ll need to pass that information on to the new owners.
Can My Tenants Refuse to Leave?
No, your tenants cannot refuse to leave because you’ve sold the property. They may only stay if the buyer agrees to let them continue renting and of course, they’re paying rent. However, if your tenants have a lease that extends past the date of sale, they can stay until the end of their lease agreement. However, it has to be a lease that expires rather than a month-to-month lease agreement. Also known as fixed-term leases, the rental agreement includes a security deposit and often an early termination clause.
What if the Buyer Wants to Move in?
New owners must give tenants at least 90 days’ notice if they want to move in. This is so that the tenants have time to find a new place to live. The new owner can only do this if it’s allowed in the lease agreement.
Can the New Owner Raise the Rent?
The buyer can raise the rent, but they must give tenants at least 60 days’ notice before doing so. To support your renters, ensure they understand their tenant’s rights in Virginia before you sell the property. This can help them advocate for themselves if the buyer tries to raise the rent too high or doesn’t give enough notice.
How Can I Show the Property?
It’s best to work with a real estate agent when selling your occupied rental property. They can help you show the property to potential buyers while respecting your tenants’ privacy. You’ll need to give your tenants at least 24 hours notice before anyone comes to see the property.
Depending on the state of the real estate market when you begin the process of selling a house, it may take time to sell a rental property. Your current tenant should get written notice of the pending changes.
What Are the Pros and Cons of Selling a Home With Tenants?
There are several pros and cons to selling a home with tenants. Ultimately, it’s up to you to decide if selling your occupied property is the right choice.
Pro: You won’t have to worry about finding new tenants
Property owners often sell when finding new tenants becomes too difficult or time-consuming. If you sell your occupied property, you won’t have to go through the hassle of finding new renters. This can be a big pro, especially if you live in an area with a low rental vacancy rate.
Con: You may have to wait longer to find a buyer
Since you can’t show the property to potential buyers whenever you want, finding a buyer for your property may take longer. This isn’t always the case, but it’s something to keep in mind if you consider selling your investment property to tenants. Also, some buyers don’t want to deal with the hassle of having tenants on the property.
Pro: You may get a higher price for your home
You may get a higher price if you sell your property while it’s occupied. This is because buyers are often willing to pay more for a home already generating income. So, selling with tenants may be the right choice if you want the most money possible for your rental properties.
Con: You may have to sell for a lower price than you would if the property were vacant
While you may get a higher price for your property if it’s occupied, there’s also a chance you’ll have to sell for a lower price. This is because some buyers are hesitant to purchase a property already rented out. If you’re considering selling your tenant-occupied property, be prepared to sell for a lower price.
Pro: You won’t have to worry about evicting your tenants
If your tenants have a lease, you can’t evict them just because you’ve sold the property. The buyer must go through the proper channels to evict the tenants if they want them to leave. This can be a big pro, especially if you don’t want to deal with the hassle of evicting your tenants.
Con: You may have to deal with difficult tenants
If you sell your property with tenants, you may have to deal with difficult renters. This is because some tenants may take advantage of the situation and cause problems with the real estate agent or buyers during the sales process. If you’re considering selling your rental building with tenants, be sure to screen the tenants carefully.
Pro: Your Tenant May Want to Buy
Although the buyers’ pool can shrink with tenant’s lease agreements, a tenant who doesn’t want to pay rent anymore may be interested in a lease-to-own agreement. This can save you time and money. For example, you can skip the open houses and not worry about the current lease terms or how much notice you have to give existing tenants. Instead, a landlord selling a house or primary residence to an existing tenant during a seller’s market is a prime example of a successful sale.
Selling rental property with tenants can be frustrating, even with the right real estate agent. The steps you take to protect your investment and tenants’ rights can make all the difference. Of course, if you have difficult renters, you may not care about their rights as much – you just want to sell the property! But, remember, difficult tenants can cause problems for the new landlord and may even lead to a lower sale price.
The best way to prevent problems with challenging tenants is to screen candidates carefully every time you rent your property. However, even the best tenant can become an issue if they think you’re trying to sell the rental property from under them. So it’s important to be up-front with your tenants about potential plans to sell the property.
Cash Home Buyers: An Alternative to the Real Estate Agent
If you’re considering selling your property with tenants, you might work with a cash home buyer. Cash home buyers are investors who purchase properties for cash. This means you won’t have to deal with showings or wait for a buyer to get approved for a loan. Instead, it’s a simple and straightforward real estate transaction with a company that buys and sells investment property.
We Buy Houses RVA will take your home as is, with tenants and all. You don’t even need to clear out the home or do any repairs. We’ll take care of it all for you. Plus, we can close in as little as two weeks. So, if you need to sell your rental property fast, we can help. Call us today to learn more.