If you’re currently facing a situation where you need to sell your house with tenants, you may wonder how it works and what you should consider if you want to go the legal route. In this blog, we’ll discuss landlord expectations when selling a house with tenants in Nevada. 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?
While most people wouldn’t consider selling a house with tenants as their first option, sometimes there is no other choice. 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, already rented houses 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.
Nevada Eviction Laws
Evictions in Nevada are governed by the Nevada Revised Statutes. It is possible for a landlord to evict a tenant for not paying rent or for violating a provision of the lease or rental agreement through either a formal eviction process or a summary eviction process. Nonpayment of rent requires a slightly different eviction notice than lease violations.
Nonpayment of Rent
Tenants who are being evicted because they haven’t paid rent must receive a five-day eviction notice, also known as a 5-day notice to pay rent or quit. After receiving the notice, the tenant has five days to pay the rent or move out. Tenants who refuse to vacate a rental unit and do not pay rent will face an eviction lawsuit, also called an unlawful detainer lawsuit, if they choose to challenge the eviction.
After receiving the complaint and summons, the tenant would also receive information regarding the hearing. Tenants have five days to file an answer with the court, detailing any defenses they wish to use in opposition to the eviction. The landlord and tenant must both show up at the scheduled hearing, where the judge will decide whether to evict the tenant.
Lease Violations
If a landlord is evicting a tenant for infringing on a provision of the lease or rental agreement, the landlord must give the tenant a five-day eviction notice, also called a 5-day notice to quit. Upon failure to move out of the rental unit or correct the violations within the five-day period, the landlord must send a second notice, referred to as an unlawful detainer notice. In this notice, the landlord gives the tenant another five days to vacate the rental unit before filing an eviction lawsuit in court.
The landlord will need to file eviction paperwork if the tenant still refuses to leave the rental unit. Tenants who choose to challenge the eviction will receive a copy of the paperwork and have five days to respond. At the hearing, both the tenant and landlord must appear, and the judge will listen to their arguments. After the judge’s decision, the tenant will either be evicted or not.
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 develop alternative living arrangements and prevent conflict in the future.
Additionally, you should review Nevada’s landlord-tenant laws to better understand your rights and responsibilities as a landlord.
How Can I Sell a House with Tenants?
When selling a house with tenants in Nevada, you have three options: to list yourself, hire an agent, or sell to a home buyer.
List Yourself
As a first option, you can list the house on your own. There are several ways to advertise, including posting flyers and putting up For Sale signs.
This option may be convenient for you if you are comfortable handling the marketing, negotiation, and closing of a home sale. Since you won’t have to pay commissions or fees to a real estate agent, you’ll also save money.
Hire an Agent
Your second option is to hire a real estate agent to sell your home. If you don’t have time to sell the house yourself or lack experience negotiating sales, this is an option you might consider. Agent closing fees, however, are charged when the sale is final. In most cases, the fee is 6% of the sale price.
Sell to a Home Buyer
There is also the option of selling the house to a home buyer. When you want to sell your home quickly but don’t want to spend a lot of money on it, this method is ideal. Selling your house to a home buyer means that closing costs will be covered, so you won’t have to spend more money.
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 tenant’s name, address, and date 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 the 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.
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