If you’re currently facing a situation where you need to sell your house with tenants, you may be wondering how things work and what to consider if you want to go about it the legal route. In this blog, we’ll discuss landlord expectations when selling a house with tenants in Michigan. Additionally, we’ll discuss some factors you should consider when selling a property with tenants. Read on to learn more.
Why Sell a House with Tenants?
Although most people wouldn’t consider selling a house with tenants as their first choice, sometimes there is no other option. The good news is that selling a house with tenants living in it has its pros, including:
- It can make an attractive offer: Since buyers do not have to find new tenants, houses that are already rented can be more attractive.
- It can allow you to negotiate a higher sales price: Rental properties generally have a higher value since they generate income.
It can be a solution to avoid eviction: Selling a property with tenants could save you from having to evict them.
What to Consider When Selling a House with Tenants
Trying to sell a renter-occupied property can also present some challenges, including:
- It can extend the sales process: Some buyers may find tenants appealing, but others may disenchant them, making the sales process longer and more challenging.
- It can lead to additional costs & complications: A house that needs a face-lift or is damaged may require repairs in order to attract buyers. There will be more money spent, and you’ll have to arrange everything around your tenant’s schedule.
How Do I Know If I Can Sell My House with Tenants?
You should review your lease agreement before selling a house with tenants to ensure that you are complying with tenant rights. If you don’t have grounds to evict your tenant, you must wait until their lease or rental agreement has expired.
Michigan Eviction Laws
The eviction of a tenant from a rental property may be triggered by many factors, such as nonpayment of rent, damage to the rental property, safety concerns, or illegal behavior at the rental property. A landlord must follow specific steps in order to complete an eviction in accordance with Michigan law.
Landlords must serve the tenant with a legal notice advising the tenant of the reason the tenant must vacate and the deadline for doing so before the eviction process can begin. In the event the landlord wishes to evict a tenant for nonpayment of rent, a 7-day Demand for NonpaymentNonpayment of Rent must be served on the tenant.
Michigan law calls for a 30-day Notice to Quit if the landlord wants to evict the tenant for any other lease violation or for the end of the lease or rental agreement.
How to Proceed
Despite being a legal alternative, eviction can be tedious and time-consuming. Whatever the circumstances, giving your tenants notice before listing the property is always a good idea. Taking this step will allow them to come up with alternative living arrangements and prevent conflict in the future.
Additionally, you should review Michigan’s landlord-tenant laws to better understand your rights and responsibilities as a landlord.
How Can I Sell a House with Tenants?
Michigan homeowners can sell a house with tenants by themselves, by hiring an agent, or by selling directly to a home buyer.
List It Yourself
The first alternative is to list the house yourself. If you’re comfortable marketing, negotiating, and closing a home sale, this option might be for you. You’ll also save money since you won’t have to pay a realtor’s commission. Advertisements can be made via flyers or For Sale signs, among other methods.
Hire a Real Estate Agent
Another way is to hire a real estate agent. This option might be of interest to you if you lack the time or experience to sell the house on your own. There is, however, a closing fee charged by the agent after the sale has been completed, which is usually 6% of the sale price.
Sell to a Home Buyer
As a third option, you can sell your house to a home buyer. The benefit of this method is that a house can be sold quickly without spending more money on it. Additionally, closing costs are covered when you sell to a home buyer, so it’s more cost-effective for you, and you don’t have to worry about dealing with the tenants.
Things to Consider Before Listing Your House for Sale with Tenants
You should inform tenants in advance if you plan to sell your property while they are still living there. Providing as much information as possible in an official letter will also help clarify your expectations. You should include the name, address, and date of the tenant in the letter. Being upfront with your tenants will make them more cooperative throughout the process.
Afterward, the tenant must be informed of what will happen. Your tenant might find it helpful to know when the house will go on the market, when showings are scheduled, or if there are any additional steps they need to take.
How to Prepare the House for Sale
When you are ready to sell your house, you need to take care of two things:
- Communicate With Your Tenant: Discuss selling your rental property with your tenants. You should let them know they do not need to move out and that you will accommodate their schedules. Be sure they are aware of any potential showings or open houses.
- Ensure Your Home is in Order: Assess whether any repairs or upgrades are needed on the home. You need to make sure your house looks fantastic if you want to sell it quickly.
Sell My House With Tenants in Michigan Hassle-Free
Selling a house is not a simple process, much less when conflicting tenants are involved. With Favor Home Solutions, your house can be sold for cash without spending a dime more and without having to deal with tenant issues. Our team will buy your house as-is within your preferred timeline so you can move forward with your life. No hidden fees or commissions- Just cash! Get started now!