Are you a homeowner in Louisiana who is looking to sell your house? If you have tenants living in your home, you’ll need to take into account the process of selling a house with tenants. This blog post will give you an overview of what that process looks like and some tips for making it as smooth as possible.
The Pros of Selling a House with Tenants
There are a few advantages to selling a house with tenants:
- In general, it’s easier to sell a home with tenants, which means potential buyers won’t need to look for new tenants.
- Selling a property with tenants allows you to sell the house for higher prices as the property comes with an income source.
- You can avoid the inconvenience of evicting your current renters if you can sell the house with tenants.
The Cons of Selling a House with Tenants
There are also a few disadvantages to selling your property with tenants, including:
- Some buyers may not be interested in buying a property with tenants.
- The sale process can be longer as you’ll need to work around your tenants’ schedules to do showings.
- The home may require repairs or modifications to make it more appealing to potential buyers, which involves additional costs.
Determining If You Can Sell a House with Tenants
The first step to determining if you can sell your house with tenants is to review your lease agreement and check your tenants’ rights. In Louisiana, tenants have the right to purchase the property they are renting under certain circumstances. If your lease agreement does not allow for the sale of the property, then you cannot sell your house with tenants.
If your lease agreement does allow for the sale of the property, you will need to give your tenants notice that you intend to sell the property. The amount of notice you are required to provide will depend on the terms of your lease agreement. Once you have given your tenants the appropriate notice, you can list your house for sale.
When you receive an offer on your house, you will need to notify your tenants that a potential buyer is interested in the property. Your tenants have the right to object to the sale of the property, but they must do so within a certain timeframe and for specific reasons. If your tenants object to the sale, you can still sell the house, but you must go through the eviction process.
Louisiana Eviction Laws
Louisiana landlords must first terminate a tenant’s lease before evicting them. This can only be done if the landlord has a legal reason to terminate. Legal cause for eviction in Louisiana is defined very broadly. Rent default or lease violation are the most common causes. A tenancy can also be terminated for any other reason (except for illegal reasons, such as discrimination-based eviction). Therefore, the landlord can also evict a tenant if they engage in illegal activity, abuse drugs, or engage in similar behavior.
Terminating a tenancy starts with giving the tenant notice. Landlords in Louisiana use a five-day notice to vacate regardless of the reason for eviction. There is no requirement for the landlord to give the tenant a grace period for paying rent or correcting lease violations. The landlord may give a five-day notice to vacate as soon as rent is late or a violation occurs. The tenant must vacate the rental unit by the end of the five-day notice. Tenants who don’t move out can be evicted by the landlord through court action.
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.
How to Sell a House with Tenants
Once you have the green light to sell the house with tenants, you can go about it in one of three ways: listing on your own, hiring a realtor, or selling the house to a home buyer.
Listing on Your Own
The first approach is listing the house on your own. You can do this by putting up a For Sale sign in the yard, advertising online, or sending out flyers in the neighborhood.
The advantage of this approach is that you don’t have to pay a real estate commission. The downside is that you’ll have to do all the work of marketing the house and showing it to potential buyers. You’ll also need to be comfortable negotiating with buyers on your own.
If you decide to go this route, make sure you understand the Louisiana Tenants’ Right to Purchase Act. This law gives tenants the first right to purchase the property if it’s listed for sale.
Hiring a Realtor
The second approach is hiring a real estate agent to list and sell the house. The advantage of this process is that you’ll have someone else doing the work of marketing and showing the house. You’ll also have someone to help you negotiate with buyers.
The downside is that you’ll have to pay an agent closing fee, typically 6% of the sales price.
Selling to a Home Buyer
The third approach is selling the house to a home buyer, such as a company that buys houses for cash. This process is usually ideal as it’s quick and easy. Additionally, home buyers buy your house as-is, so you don’t need to spend additional resources on fixing up the property.
What to Do Before Listing a House for Sale with Tenants
Before listing a house for sale with tenants in Louisiana, there are a couple of things you need to keep in mind:
- Louisiana law requires you to give your tenants at least 60 days’ notice before listing the property for sale.
- You will also need to provide your tenant with a disclosure form that outlines their rights during the sale process.
- Be sure to communicate with your tenants throughout the process to keep them updated on what’s happening.
Preparing the House for Sale
Once you have taken care of the logistical details, you can begin preparing your house for sale. This includes things like:
- Decluttering and deep cleaning the property
- Making any necessary repairs or updates
- Staging the house to appeal to buyers
Closing Tips to Sell a House with Tenants
When you’re ready to close on the sale, there are a few things to keep in mind to comply with Louisiana’s landlord-tenant laws.
First, you must give your tenants at least 60 days’ notice that you are selling the property. You should also include a statement in the lease that the property is for sale and that the tenant will need to accommodate showings. Finally, you’ll want to be sure to have all of your paperwork in order to avoid any last-minute surprises.
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