Selling a House With a Tenant Living There: What Are Your Options?
DISCLAIMER: As a friendly reminder, this blog post is meant to be used for educational purposes only, not legal advice. If you need assistance navigating the legalities of your sale, HomeLight always encourages you to reach out to your own advisor.
The national median price of an apartment in March 2024 stood at $1,987. This is $355 more than the median price five years ago and $15 more than March last year. Though rent prices are cooling after the inflated prices brought on by the pandemic, owning rental property continues to hold a huge appeal for people who want a stream of passive income as well as a solid real estate investment.
Trouble is, selling a house with a tenant can be as big a headache as finding a suitable tenant in the first place. The terms of the lease come into play, as do landlord-tenant laws and state statutes. Your state’s bar association outlines landlords and tenants rights and responsibilities, such as providing reasonable notice to enter the property barring an emergency.
Plus, even if you have a good relationship with your tenant, that person generally won’t be as invested in the property as you are. Matt Mauro, a top-selling agent in Des Moines, Iowa, who helps clients sell their rental properties, explains:
“A tenant has no incentive to not only make the home available but to show it in the condition that would maximize its appeal, therefore maximizing its value.”
To make that process a little easier on everyone — your renters included — we’ve broken down specific considerations and options for selling a house with a tenant.
