What if landlord sells property

Few buyers in this category will want to take on a high monthly mortgage bill while waiting for a low-rent-paying tenant's lease to expire. Also keep in mind that different investors will expect certain types of properties to have better returns on investment than others—put yourself in an investor's shoes and run some numbers on your property.

The tenant and state of the tenancy. Personal characteristics of your tenant will come into play when selling.

A tenant who doesn't keep up with housekeeping, isn't responsive to communication, or is just generally difficult will only hinder your selling efforts. On the other hand, a tenant who is neat, clean, responds to communications such as requests for showings , and who is willing to assist can be an asset. Also, keep in mind the financial side: A current tenant who owes money or is paying below-market rent is likely to be a headache that few buyers want to take on.

What to Do When Having a Current Tenant Would Hurt Your Chances of Selling Once you've examined the pros and cons, what are your options if you decide that selling without a tenant is the better option?

Marketing Considerations When Selling With a Tenant in Residence Assuming the tenant will be staying on post-closing, and depending on your property's size and layout, you might want to market it as both a primary residence and a potential investment property.

Make showing times easy for the tenant. Let the agent marketing the property know that the tenant needs at least 24 hours' notice for showings or whatever time is specified in the lease for entry. Let the agent know if there are times that the property cannot be shown due to the tenant's schedule.

The listing agent will make sure that any buyers and other agents wanting to view the property will abide by your timing requests. You can always contact the tenant with a special request to show the property on shorter notice, but unless you reach a new agreement with the tenant, the notice required for entry is governed by the lease.

Ask the tenant to depart the property during showings. No buyer, investor or otherwise, likes to be followed around by a resident—especially one who may be grumpy about the impending move. The buyer should be able to freely view the property. Offer the tenant a gift card to a nearby coffee shop to use while the property is being shown.

Make keeping the property in good condition easy for the tenant. Offer to hire a cleaning or yard service for the time when the property is on the market. Since a tenant doesn't have a stake in the sale of the property and may even be in the process of moving out , it's important that you, the seller, take some responsibility for keeping the property in show-worthy condition. Help the tenant find a new residence, if needed. If you own other investment properties, alert the tenant to any appropriate openings.

If you are not an investor, you could suggest sources of local listings or let the tenant know that you will ask your friends whether anyone knows of available properties. Ensure that the tenant is caught up with rent.

Some landlords are more lenient than others in letting tenants get behind in rent. If the tenant is staying on and is behind in rent, it's time to take action. A delinquent tenant is not a good selling point. One option may be to forgive the delinquency in exchange for the tenant moving out.

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Our advisers have noted an increase in the number of people contacting us for help because their home is being sold by their private landlord. Some of the tenants we have spoken with think that the emergency COVID extension to notice to quit periods does not apply if the landlord is selling the property.

This is simply not true. If the tenant remains in the property after the notice expires, the landlord must apply to a court for a possession order. Instead, an order for possession must be enforced by court officers. A property can be sold with a sitting tenant.

If this happens, the new owner will become the landlord, and must register as such. The new owner will have to honour any terms set out in the tenancy agreement the tenant had with the former owner until the contract expires.

Some purchasers will not want to complete the sale until the tenancy has been ended and will put pressure on the landlord to evict any sitting tenant.