Selling with Tenants: 3 Must-Know Tips for Landlords

Selling a rental property with tenants still living in it can be both a great opportunity and a unique challenge. At Focus Real Estate, we understand that navigating this process can feel overwhelming, but with the right approach, it can be a smooth transition. Here are the three most important things to expect when selling a tenant-occupied property.

1. Understanding Tenant Rights and Legal Implications

Your tenants' rights are protected by law, and whether they are on a fixed-term lease or month-to-month agreement, it’s crucial to honor those terms.

• Fixed-term lease: Tenants are entitled to stay until their lease expires, even after the property changes ownership. This may appeal to investors looking for immediate rental income.

• Month-to-month lease: While this provides more flexibility, you’ll still need to give proper notice (typically 30 to 90 days, depending on local laws) before asking tenants to vacate.

Understanding these legal obligations will help you avoid complications down the line and ensure a smoother transaction.

2. Adjusting to a Different Buyer Pool

Selling a tenant-occupied property shifts your potential buyer pool. Investors may see a tenant as an asset, providing instant rental income with no need for immediate tenant sourcing. However, traditional homebuyers might prefer vacant properties, as they are looking for a home they can move into right away.

Understanding who your buyer is—and how to market your property accordingly—can make a big difference in attracting the right offers.

3. Communicating Early and Often with Your Tenants

Transparency is key when selling a tenant-occupied property. Keeping your tenants informed about your intentions and how the sale will impact them is crucial to maintaining a good relationship and ensuring their cooperation. This includes scheduling showings, inspections, and appraisals at times that work for your tenants.

Incentivizing them to keep the property in showing condition—perhaps by offering a small rent reduction—can also make a big difference in the presentation of your property to potential buyers.

Selling a tenant-occupied property doesn’t have to be complicated. At Focus Real Estate, we’re here to help landlords navigate the process successfully. Give us a call at (617) 676-4082 or visit us at 34 South St, Jamaica Plain to discuss your options with our experienced team. Let’s make your next move a smooth one!