If you’ve found yourself in a situation where you need to sell your house with tenants in Illinois, you might be wondering what the process looks like and what you need to consider. In this blog, we’ll discuss buyer and seller expectations when selling a house with tenants.
Additionally, we’ll discuss some factors to consider when selling a property with tenants. Read on to learn more.
The Benefits of Selling a House with Tenants
Selling a house with tenants living in it has several benefits, including:
- It’s an attractive offer: By not having to find new tenants, potential buyers might find it more appealing to buy houses already rented.
- It allows for a higher sales price: A house with tenants has an income stream, so it can be worth more.
- It can be a solution to avoid the eviction process: If you are selling a property with tenants, you can avoid the inconvenience of evicting them.
The Challenges of Selling a House with Tenants
Selling your property while tenants occupy it also presents a few challenges, including:
- It can be a long process: Having tenants in place can be attractive to some buyers but may disenchant others, making the sale more difficult.
- It can lead to additional expenses & hassle: If a house needs a facelift or is damaged, repairs may be necessary to make it more appealing to buyers. Not only will you spend more money, but you’ll need to work around your tenant’s schedule to get them taken care of.
Can I Sell My House with Tenants?
Your lease agreement should be reviewed before you sell a house with tenants so that you comply with tenant rights. The terms of the tenant’s lease must be adhered to when selling the property.
When you don’t have cause to evict your tenant, you wait until the lease or rental agreement expires before expecting them to leave.
Illinois’s Eviction Laws
Illinois laws require landlords to have a legal reason to evict tenants before their lease or rental agreement expires. The most common reasons for eviction are non-payment of rent or a violation of the rental agreement. A landlord may also evict a renter who destroys rental unit property. In order to evict a tenant for one of these reasons, a landlord must first give the tenant notice.
Pay Rent or Quit Notice
Unpaid Illinois renters receive a pay rent or quit notice, which gives them five days to pay rent or move out.
Cure or Quit Notice
When tenants violate lease terms, landlords can give them a reasonable amount of time to fix the problem before evicting them. In the event the tenant does not resolve the issue within the given timeframe, the landlord has the right to evict the tenant.
Ten-Day Quit Notice
Landlords may give tenants ten-day notices to quit if they violate any of the terms of the lease or rental agreement. As a result of violating the lease, the tenant has ten days to move out of the rental unit. Landlords are not required to give tenants any time to correct violations. Failure to move out of the rental unit within ten days means the landlord can terminate the tenancy and file an eviction lawsuit.
Evictions can be messy affairs, even though they are a legal alternative when necessary. You should give your tenants notice before listing the property, regardless of the circumstances. By taking this step, they can make alternative living arrangements and prevent future conflict.
Additionally, you should review Illinois’ landlord-tenant laws to understand your rights and responsibilities as a landlord.
How to Sell a House with Tenants
You can sell a house with tenants in Illinois by listing it yourself, hiring an agent, or selling to a buyer.
- List Yourself: Your first option is to list the house yourself. You can advertise with flyers and For Sale signs, among other methods. This option may suit you if you are comfortable with marketing, negotiating, and closing a home sale. Additionally, you’ll save money since you won’t have to pay a realtor’s commissions.
- Hire an Agent: Another option is to hire a real estate agent. You might consider this option if you don’t have time to sell the house yourself or lack experience negotiating sales. However, an agent closing fee is charged after completing the sale. Most often, the cost is 6% of the sale price.
- Sell to a Home Buyer: You can also sell your house to a home buyer as a third option. This method is ideal for selling a house quickly while not spending more money on it. When you sell to a home buyer, closing costs are covered, making it more cost-effective for you.
Things to Keep in Mind Before Listing Your House for Sale with Tenants
If you intend to sell your property while tenants are still living there, you should notify them in advance. Providing as much information as possible in an official letter will help clarify your expectations. Ensure that the letter includes the date, the tenant’s name, and the property’s address. If you are upfront with your tenants, they will be more cooperative.
A tenant must then be informed of what will happen as a result of the sale. It might be helpful for your tenant to know when the house will go on the market, when showings are scheduled, or if there is anything they need to do while the house is on the market.
Preparing the House for Sale
Two things need to be taken care of when you are ready to sell your house:
- Have a Conversation With Your Tenant: Talk to your tenants about selling the rental property. Be sure to let them know that they don’t need to move out and that you’ll work around their schedules. Be sure to let them know ahead of time about potential showings and open houses.
- Make Sure The House is in Order: Check for any repairs or upgrades that need to be done. You want your house to make an excellent first impression on potential buyers, so make sure it looks great.
Sell My House With Tenants Fast in Illinois
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