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How to Sell a Denver Property with a Tenant

Posted on: August 31st, 2016 by , No Comments

Property with a Tenant

Yes, the landlord and tenant have rights if you have a property with a tenant.

If you have a property with a tenant situation: You own a rental property and you either are tired of the management or the tenants trashed the placed when they were evicted, sound familiar?

Selling is probably the best option at this point but it may not be as easy as you think if you own a property with a tenant.

The tenant is considering this house a home and has a personal life of their own. This is much different then selling an iPhone you don’t want on Craigslist. You do own the property, the tenant has a right to live there every month they deposit that check to you.

Despite horror stories most tenants are terrific. They pay rent on time, keep the house well cleaned and they’re very flexible with you. But change is hard, especially with bad tenants. This is where locks are changed or they never answer the phone.

No matter what type of property with a tenant you have it’s critical to know when the landlord and tenants rights start and stop.

If your property with a tenant is month-by-month

Look up the laws of your state to determine how much notice you’re required to give your tenant to vacate. Usually, it’s 28 or 91 days depending on lease length. Especially in a hot market like Denver, you need to give them time.

Notify your tenants via letter when their tenancy is going to end well ahead of anything else you do. Even if you’ve had an unpleasant landlord-tenant relationship and are thinking, “Don’t let the door hit you on the way out,” this is business, not personal! Politely ask your tenant to remove all belongings by move-out day and to leave the keys on the counter.

If your lease agreement allows, you can show the property with your tenant still in it. If not, wait until your tenant has moved out to show the place. Landlordology is a great resource to use if you’re unsure about what to do.

If they are on a fixed-term lease

Assuming that the lease in good standing and there is not an early termination clause, your tenants get to live out the lease period.

Of course the obvious one is if your tenant failed to pay rent or violated any lease terms, then go ahead and terminate the lease.

Start by showing the property while your tenant is there. As long as you give proper notice and your lease allows this. Don’t go overboard and disturb them. Hold out until the lease is up and the place is vacant to sell the property.

Sell to a professional home buyer

Why not sell to a professional home buyer? Who better to sell a property to then somebody who’s already in the game and experienced. The beautiful thing about selling a property with a tenant in place is that it actually makes the job easier for the investor. Inheriting a tenant for a new owner is common and not something you have to lose sleep over. Just make sure you let the buyer know about the current lease’s terms.

Pay Your Tenant to Leave

This is another one of those obvious yet overlooked things.

Have a sit down with the family at the property and be honest about how you feel in selling the place. Make sure they know it’s not them it’s just that things have changed for you. You have other plans. Think about these scenarios:

  • You could pay their security deposit for the new home
  • You could give them a month free to use that money instead
  • You could pay them any amount you negotiate
  • Offer incentives like paying for the moving truck, appliances included, etc.

Think outside the box on this one but at the end of the day this is not forcing them out, it’s just an option. If they won’t move just wait it out.

Let the property with a tenant be the Buyer

If paying them wasn’t an option and they won’t leave because if a thing like location, sell it to them! Buyer is already in place. Consider seller financing or a lease with an option to buy. These are great ways to give your tenants a choice to keep the home in case they don’t want to leave anywhere else.

If You Have A Problem Property With A Tenant

What if your renters refuses to let you show the place, even if you’re allowed to per the lease? You can enter still. But a hostile tenant probably won’t keep the house exactly show-ready and might even scare away potential buyers. So you may want to tread lightly until this tenant is out.

What if that tenant changes the locks? Call the police who can force an entry into the property.

Altogether in having a property with a tenant

At the end of the day don’t feel left alone in this process if you have a property with a tenant. This is something that happens everyday, every year and will continue to happen. Time and circumstances change for all of us in many different situations. If you feel lost on this https://www.landlordology.com/colorado-landlord-tenant-laws/ is a great way to know what the Colorado Rental Laws are. We wish you the best in selling a Denver property with a tenant.

Take care!

Related Posts You May Be Interested In:

Why Selling in Denver May Be Better Than Landlording

4 Reasons To Sell Your Rental Property

3 Options For Selling A House in Colorado: Pros and Cons

Sell Your Home As Is – The Quick and Easy Guide

 

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