The process of selling a house involves many factors. For this reason, understanding the process and what to expect is crucial if you have tenants on the property.
In this blog post, we’ll provide you with everything you need to know about selling your house with tenants in New Mexico. We’ll cover the process and the pros and cons of doing so. So, be sure to read on whether you’re just starting to think about selling or are already in the process!
Why Sell Your House with Tenants?
There are a few incentives to selling your house with tenants.
An Attractive Offer for Potential Buyers
Having tenants in place makes selling a house easier since potential buyers won’t have to find new ones.
A Higher Sales Price
A house with tenants typically sells for a higher price than one without, as the buyer will be more apt to pay a premium for a house that is already generating income.
Avoid the Eviction Process
Selling your home with tenants can save you the trouble and expense of evicting your current tenants.
The Drawbacks of Selling a House with Tenants
In New Mexico, there are also some potential drawbacks to selling your house with tenants.
A Longer Process
A home with tenants may take longer to sell if it is difficult to find a buyer willing to take on the lease. You may not want to list your house with tenants if you’re in a hurry to sell.
Selling a house while your tenants are behind on their rent or have caused significant property damage may become more difficult and expensive. Moreover, you’ll have to work around their schedules to get things done.
Check If You Can Sell a House with Tenants
When you need to sell a house with tenants in New Mexico, you should first check your lease agreement to make sure you comply with tenant rights. Unless you have a valid reason to evict your tenant, you should wait until the lease or rental agreement term is over before you expect them to leave.
New Mexico’s Eviction Laws
If a landlord wishes to evict a tenant before the tenancy has expired, a legal cause must be provided. As defined by New Mexico law, a legal cause is either a tenant’s nonpayment or violation of a lease or rental agreement. The landlord must first terminate the rental agreement through a written notice before evicting the tenant for one of these reasons. For each reason for eviction, a different notice is required.
Three-Day Notice to Pay Rent
Tenants who have not paid rent can be given a written three-day notice by the landlord. In this notice, the landlord must inform the tenant that the rental agreement will be terminated after three days if the rent is not paid in full. Upon non-payment of rent by the tenant, the landlord may file an eviction lawsuit in court.
Seven-Day Notice to Remedy
Renters who violate their lease or rental agreements can be given a seven-day notice by their landlords. Tenants must be informed that the landlord will terminate the rental agreement unless the violation is fixed within seven days. The landlord can file an eviction lawsuit against the tenant if the tenant fails to fix the violation within seven days.
Three-Day Unconditional Quit Notice
If a tenant commits a substantial violation (like hurting another person), the landlord can give the tenant an unconditional three-day notice to leave. The notice must inform the tenant that the landlord will terminate the tenancy after three days due to the substantial violation by the tenant. There will be no opportunity for the tenant to fix the violation. A landlord may file an eviction lawsuit against a tenant after three days.
Seven-Day Unconditional Quit Notice
Upon a tenant’s second material violation of the lease or rental agreement within a six-month period, the landlord is not required to give the tenant a chance to remedy the situation. The landlord can instead provide the tenant with a 7-day unconditional quit notice. The tenant must be informed that because the tenant has repeatedly violated the lease, the landlord is terminating the tenancy within seven days. Tenant eviction lawsuits can be filed by the landlord after seven days.
Is Eviction The Answer?
When necessary, eviction can be a legal alternative, but it can also be messy. In any case, it is a good idea to give your tenants notice before listing the property. This will allow them to find alternative accommodations and avoid conflict in the long run.
Furthermore, as a landlord, it’s also recommended to review New Mexico’s landlord-tenant laws 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 property yourself. This option may be convenient for you if you are familiar with marketing, negotiating, and closing a home sale. As an added benefit, you will be able to save money by avoiding real estate commissions and fees. Your property can be advertised online, through flyers, or with a For Sale sign.
Hire an Agent
The second option is to hire a real estate agent. In case you are short on time or don’t have much experience negotiating home sales, this may be a good option for you. However, at the conclusion of the sale, the agent’s closing fee, usually 6%, is charged.
Sell to a Home Buyer
A third option is to sell your house to a home buyer. If you want to sell your house quickly and don’t want to spend more money on it, this method is ideal. All closing costs will be covered by the buyer, so you won’t have to spend more money to sell the home.
A Few Things to Note Before Listing Your House for Sale with Tenants
In the event that you are selling your property while tenants are still living there, you must notify them in advance. It is also a good idea to document your expectations in a letter. The more upfront you are with your tenants, the more likely they are to cooperate.
As you prepare to sell the house, you should explain what happens next to the tenant. For example, 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 take care of:
Talk to Your Tenant
You should discuss selling your property with your tenants. Make sure they know they don’t need to move out and that you’ll work around their schedule. You should also inform them about potential showings and open houses so they are prepared.
Prepare The House for Sale
This entails taking care of any repairs or upgrades that need to be made. It is very important to make a good first impression on potential buyers. Ensure that all utility payments are current as well.
Sell My House With Tenants Fast in New Mexico
Having tenants in a house can make selling it stressful and time-consuming, especially if you struggle with landlord-tenant relations. When you work with Favor Home Solutions, you receive a fair cash offer for your house without spending an extra dime or worrying about dealing with your tenants. 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!