Do you need to sell your house with tenants in Florida? If so, you might be wondering what the process involves and how it will impact you and your tenants. In this blog post, we’ll explore the process of selling a house with tenants, including buyer and seller expectations.
In addition, we’ll cover some of the things to keep in mind when deciding whether or not to sell your property with tenants. Keep reading if you are considering selling your Florida house with tenants!
The Pros of Selling a House with Tenants
Selling a house with tenants has a few benefits.
An Appealing Offer
Potential buyers can find it easier to buy a house with tenants already in place since they won’t have to worry about finding new tenants.
A Higher Sales Price
A house with tenants can also fetch a higher price than one without since it comes with an income stream.
A Solution to Avoid the Eviction Process
Selling the house with tenants can help you skip the hassle of evicting your current tenants in order to sell the property.
The Cons of Selling a House with Tenants
Selling your property with tenants also comes with a few challenges.
A Long Process
Some buyers may find buying a house with tenants in place appealing, but for others, it can cause disenchantment, making it harder to sell.
A Chance for Additional Costs
In order to make the house more appealing to buyers, you may need to make repairs if the house has been damaged or needs a facelift.
Determine If You Can Sell a House with Tenants
You should first review your lease agreement to verify your tenants’ rights before selling your house with tenants. If your tenants have a valid lease, you will have to follow the lease terms when selling the property.
Florida’s Eviction Laws
If your lease is year-to-year, you can legally terminate the agreement in three ways:
Pay Rent or Quit Notice
In the state of Florida, renters who haven’t paid their rent are given a pay rent or quit notice, which gives them seven days to pay rent or move out.
Cure or Quit
When the tenant violates a term of the lease, landlords can give them 3-30 days to correct the error in order to avoid eviction. This can include keeping pets in a no-pet building, disrupting other tenants or neighbors with parties or loud music, or if there is an unauthorized person living on the property.
Unconditional Quit Notice
This Florida tenant eviction law applies if a tenant violates their lease more than two times, has done things that can’t be corrected (such as property alterations) or engages in illegal activities on the property. If a tenant fails to comply with your unconditional quit notice, you may file a lawsuit for eviction.
Though available if needed, evictions can often become messy. Selling the property will be easier with a month-to-month lease or no-lease agreement. Whatever the case, giving your tenants notice before listing the property is a good idea. This step will allow them to make alternative living arrangements and avoid conflict later.
Overall, as a landlord, it’s also a good idea to review Florida’s landlord-tenant laws to be aware of your rights and responsibilities.
How to Sell a House with Tenants
If you are able to sell the house with tenants, you have three options: to list yourself, hire an agent, or sell to a home buyer.
Listing the home on your own is the first option. You can advertise online, post flyers, or put up a For Sale sign.
If you are comfortable handling a home sale’s marketing, negotiation, and closing, this option may be convenient for you. You’ll also save money since you won’t have to pay real estate commissions or fees.
Hire an Agent
The second option involves hiring a real estate agent to sell your house. You can use this option if you don’t have time to sell the house yourself or lack experience negotiating home sales. When the sale is final, however, an agent’s closing fee is charged. The fee is usually 6% of the sale price.
Sell to a Home Buyer
A third option is to sell the house to a home buyer. Using this method is ideal when you need to sell the home quickly and don’t want to spend a lot of money on it. If you sell your house to a home buyer, they will take care of all closing costs, so you don’t have to spend more money on the process.
Things to Keep in Mind Before Listing Your House for Sale with Tenants
If you plan to sell your property with tenants still living in it, you will need to notify them in advance. Ideally, this should be documented in a letter with as much information as possible to clarify your expectations. The more upfront you are, the more likely your tenants will be to cooperate with you.
The letter should include the date, the tenant’s name, and the property’s address. To ensure the tenant receives the correct rental property documents, they must provide identification information.
The next step is to share your plans to sell with the tenant and explain what will happen next. For example, when you plan to put the home on the market, if there are any showings scheduled, or if they need to do anything while the house is on the market.
Preparing the House for Sale
Once you’re ready to sell your house, there are two things you need to take care of:
Talk to Your Tenant
Have a conversation with your tenants about your plans to sell the property. It’s important to inform them that they do not need to move out and that you will work around their schedule as much as possible. You should also let them know about potential showings and open houses so they are prepared. In Florida, this notice must be given with at least 12 hours of anticipation.
Get The House in Order
This involves taking care of any repairs or updates that need to be made. The first impression you make on potential buyers will be very important, so make sure your house looks good. Make sure all utility payments are current as well.
Closing Tips to Sell a House with Tenants
It’s important to comply with Florida’s landlord-tenant laws when it comes time to close on a sale. Tenants must be notified of the sale at least fifteen days before closing. The notice must contain the closing date and the new landlord’s name and address. Afterward, make sure all utilities are transferred over to the new owner.
Sell My House Fast in Florida
Tenants can make selling a house stressful and time-consuming. With Favor Home Solutions, you can sell your house quickly and without spending an extra dime by receiving a fair cash offer. Our team is prepared to buy your houses as-is, so you can put cash in your pocket and move on with your life. No hidden fees or commissions! Get started now!