When you’re ready to sell your house, there are a lot of things to take into consideration. If you have tenants living on the property, it’s essential to understand the process and what to expect.
In this blog post, we’ll provide you with everything you need to know about selling your house with tenants in Arkansas. We’ll cover the process as well as the pros and cons of doing so. So, whether you’re just starting to think about selling or are already in the process, be sure to read on!
Why Sell Your House with Tenants?
There are a few reasons why you might want to consider selling your house with tenants.
An Attractive Offer for Potential Buyers
It’s usually simpler to sell a house with tenants in place since potential purchasers won’t have to worry about finding new tenants.
A Higher Sales Price
Houses that already have tenants on the premises typically sell for a higher price than those that do not. Buyers will be more prepared to pay a premium for a home with an income stream already in place.
Avoid the Eviction Process
Selling your home with tenants can save you the trouble and expense of evicting your current tenants.
The Disadvantages of Selling a House with Tenants
In Arkansas, there are also some potential drawbacks to selling your house with tenants.
A Longer Process
Finding a buyer willing to take on an existing lease can be challenging, so it may take longer to sell a home with tenants. If you’re in a hurry to sell, listing your house with tenants may not be the best option.
Additional Expenses
If you’re attempting to sell your house while your tenants are behind on their rent or have caused significant property damage, things may get more complicated and expensive.
How to Determine If You Can Sell Your House with Tenants
It’s necessary first to assess whether you can sell your property with tenants, which involves reading your lease agreement to see how much time the tenant has on the premises. If your lease paperwork says that the tenant has the right to use the property for a set length of time, you will probably not be able to sell it until after that period has ended.
However, if there is no stipulation of time in the lease agreement or your tenant has breached the lease in any manner, you may be able to proceed with the sale in Arkansas while complying with landlord-tenant laws.
Arkansas Eviction Laws
Before evicting a tenant, a landlord must have legal cause to do so. Among the legal causes of eviction in Arkansas are failure to pay rent, violations of a lease or rental agreement, failure to maintain a safe rental, or committing illegal acts.
Landlords must terminate tenancies before they can file an eviction lawsuit, which means they must give written notice to tenants that their tenancies are ending. The type of notice required will vary depending on the reason for the eviction.
Failure to Pay Rent
When a tenant fails to pay rent, landlords in Arkansas have two options. There are two types of evictions that landlords can initiate, civil eviction or criminal eviction, and each requires different types of notice.
- Civil eviction: A landlord in Arkansas must wait five days before evicting a tenant who fails to pay rent on time. An unconditional notice to move out can be served by the landlord if rent is not paid within five days. The tenant who receives unconditional notice to quit has no other option than to move out or face eviction. Three days must be given to the tenant to vacate the property. The landlord can file an unlawful detainer suit if the tenant doesn’t leave after three days.
- Criminal eviction: A landlord can pursue criminal charges against a tenant who fails to pay rent on time. It is the landlord’s responsibility to provide the tenant with written notice of 10 days before the tenant is required to leave. A misdemeanor is committed if the tenant does not leave during this time. Courts may fine tenants up to $25 per day they remain in the rental after the notice has expired.
Violation of the Lease or Rental Agreement
A landlord in Arkansas must give a tenant a 14-day notice to cure (fix the problem) or quit (move out) when they violate a lease term. Unlawful detainer lawsuits can be filed if the tenant does not fix the problem or leave within 14 days.
Failure to Maintain A Safe Space
A landlord must give the tenant 14 days’ written notice if the rental becomes unsafe or uninhabitable due to a tenant’s actions. Examples include removing the hot water heater or allowing trash to accumulate in the unit. Landlords can file unlawful detainer lawsuits if tenants don’t fix the problem. In the event the situation can’t be resolved, the landlord can file an unlawful detainer lawsuit immediately.
Criminal Actions
It is also possible for the landlord to evict the tenant if the tenant commits certain criminal acts in the rental unit. Illegal acts such as gambling, prostitution, and alcohol sales are included in this category. An unlawful detainer lawsuit can be filed immediately by the landlord in this situation.
Should You Evict?
Despite being legal, evictions are complicated and can get messy. Regardless of the circumstances, it is always a good idea to give your tenants notice before listing your property. By taking this step, they will be able to come up with alternative living arrangements and avoid future conflicts.
Your Options When Selling a House with Tenants
The process of selling a house with tenants can go in any of three ways: listing the house yourself, working with a real estate agent, or selling the house for cash.
Listing the House Yourself
One alternative is to sell your home on your own. This may be a good choice if you’re familiar with the real estate market and can handle the sale without help. You’ll be responsible for setting up open houses and negotiating with potential buyers.
Working with a Real Estate Agent
If you’re working with a real estate agent, they’ll take care of the details. On the other hand, you may expect to pay a commission if your property sells. The procedure can also last many months before a transaction is complete.
Selling the House for Cash
Another option is to sell your home to a cash house buyer company. This is an excellent choice if you need to sell your property fast and don’t want to deal with the hassle of showing it or negotiating with buyers. When you sell your property to a cash home buyer, they will offer you an as-is price for your house, which can save you a lot of money that would otherwise be needed on repairs.
Steps to Take Before Listing Your House for Sale with Tenants
Before listing your house for sale with tenants in Arkansas, there are a few things you need to take care of to comply with landlord and tenant rights.
For starters, you should give your tenants at least 30 days’ notice that you will be listing the property for sale.
You’ll also need to provide potential buyers with a copy of the tenant’s lease agreement, so they know the contract’s terms.
Finally, it’s a good idea to take care of any necessary repairs on the property and ensure all utility payments are up to date to make the sale more appealing to potential buyers.
How to Show Your House with Tenants
When showing your house with tenants, there are a few things to keep in mind.
First, you should give your tenants as much notice as possible before each showing. It’s also a good idea to have someone present during showings to answer potential buyers’ questions. And finally, be sure to schedule showings at times that are convenient for your tenants to minimize any disruption to their daily routine.
Closing Tips For the Sale Process in Arkansas
When you’re ready to close on the sale of your house, there are a few things to keep in mind to comply with Arkansas landlord and tenant laws.
You’ll need to send a notice of sale to your tenants, and this notification should give your renters at least 30 days’ notice that you are selling the property. Then, make sure all of the utilities are transferred into the new owner’s name.
Sell Your House As-Is & Hassle-Free Today!
Selling a house with tenants can be a complicated and extensive process. Avoid the inconveniences by selling your home to a trusted home buyer company! At Favor Home Solutions, we provide competitive cash offers and work with you every step of the way so you can sell your house as quickly and hassle-free. You won’t need to worry about paying hidden commission fees or making repairs to the house when you work with us! Let’s get started!
