Do you need to sell your house with tenants in Indiana? If so, you may wonder what the process entails and how it will impact you and your tenants. In this blog post, you will learn about the process of selling a house with tenants, including the buyer and seller’s expectations.
Additionally, we will discuss some things to keep in mind when selling your property with tenants. If you are considering selling a house with tenants in Indiana, keep reading!
The Perks of Selling a House with Tenants
There are a few benefits to selling a house with tenants.
An Enticing Offer
A house with tenants already in place can be convenient to buy since buyers don’t have to worry about finding new tenants.
A Greater Sales Price
Having tenants can also increase the price of a house since they provide an income stream.
An Alternative to the Eviction Process
By selling the house with tenants, you can avoid the trouble of evicting your current tenants.
The Drawbacks of Selling a House with Tenants
Tenants also pose a few challenges when selling a property.
A Lengthy 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 Potential for Additional Expenses
If the house needs repairs or a facelift to make it more attractive to buyers, you may need to make repairs, and these would need to be worked around your tenant’s schedule.
Determine If You Can Sell a House with Tenants
If you plan to sell your house with tenants, you should first review your lease agreement to ensure you comply with tenant rights. If your tenants have a valid lease, you will need to follow the lease terms when considering selling the property.
If you don’t have cause to evict your tenant, you wait until the end of the lease or rental agreement term before expecting your tenant to move.
Indiana’s Eviction Laws
According to Indiana’s laws, a landlord must have a legal reason to evict a tenant before the lease or rental agreement expires. Rent non-payment or violation of the rental agreement are the most common reasons for eviction. Renters who willfully destroy rental unit property may also be evicted by their landlords. To evict a tenant for one of these reasons, the landlord must first give notice to the tenant.
Pay Rent or Quit Notice
In the state of Indiana, renters who haven’t paid their rent are given a pay rent or quit notice, which gives them ten 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.
Unconditional Quit Notice
Tenants who willfully damage or destroy rental property can have their tenancy terminated immediately by the landlord. Tenants must still receive notice, but this notice will inform them that their tenancy is ending immediately. After that, the landlord may file a lawsuit for eviction against the tenant in court.
Though a legal alternative when necessary, evictions can be messy affairs. Giving your tenants notice before listing the property is a good idea, regardless of the circumstance. Taking this step will allow them to make alternative living arrangements and avoid conflict later on.
Moreover, as a landlord, it’s also a good idea to review Indiana’s landlord-tenant laws in order to understand your rights and obligations.
How to Sell a House with Tenants
There are three ways to sell a house with tenants: you can list yourself, hire an agent, or sell to a home buyer.
The first option is to list the home yourself. A For Sale sign, flyers, or an online advertisement are all great ways to advertise your property. Choosing this option may be convenient if you are comfortable handling a home sale’s marketing, negotiation, and closing. By cutting out real estate commissions and fees, you’ll also save money.
Hire an Agent
Second, you can hire a real estate agent to sell your house. It may be a good option for you if you are short on time or if you have no experience negotiating home sales. However, when the sale is final, an agent’s closing fee is charged, which is usually 6% of the sale price.
Sell to a Home Buyer
Selling the house to a home buyer is a third option. If you need to sell the home quickly and don’t want to spend a lot of money on it, this method is ideal. The home buyer will take care of all closing costs, so you won’t have to spend more money on the process.
Things to Keep in Mind Before Listing Your House for Sale with Tenants
It is important to notify tenants in advance if you plan to sell your property with them still living there. In order to clarify your expectations, you should document this in a letter with as much information as possible. Tenants are more likely to cooperate with you if you are upfront.
The date, tenant’s name, and property address should all be included in the letter. Identifying information is necessary to ensure the tenant receives the correct rental property documents.
The next step is to explain to the tenant what will happen next as you prepare to sell the house. In other words, when you plan to put the house on the market, if any showings are scheduled, or if anything needs to be done during the selling process.
Preparing the House for Sale
Once you’re ready to sell your house, there are two things you need to address:
Talk to Your Tenant
Talk to your tenants about your plans to sell the property. Informing them that they do not have to move out and that you will work around their schedule is important. It is also a good idea to inform them about potential showings and open houses, so they are prepared.
Prepare The House for Sale
This involves taking care of any repairs or upgrades that need to be made. Your house’s first impression will be very important to potential buyers, so make sure it looks good. Ensure that all utility payments are current as well.
Closing Tips to Sell a House with Tenants
When closing on a sale, it’s crucial to comply with Indiana’s landlord-tenant laws. Before closing, tenants must be notified of the sale at least thirty days in advance. As soon as the new owner has been transferred, make sure that all utilities have been transferred over as well.
Sell My House Fast in Indiana
Having tenants in a house can make selling it stressful and time-consuming. With Favor Home Solutions, you receive a fair cash offer for your house without spending an extra dime. Our team is prepared to buy your house as-is, so you can put cash in your pocket and move on with your life. No hidden fees or commissions! Get started now!