In the event that you need to sell your house while it still has tenants, you might be wondering how the process works and what to consider. In this blog, we’ll review landlord expectations when selling a house with tenants in Pennsylvania. Additionally, we’ll discuss some important factors you should consider when selling a property with tenants. Read on to learn more.
Why Sell a House with Tenants?
When you need to sell the house as soon as possible, sometimes there is no other option than selling a house with tenants.
The good news is that selling a house with tenants living in it has its benefits, including:
- It can make an attractive offer: Buying houses that are already rented might appeal to buyers since they do not have to find new tenants.
- It can allow you to negotiate a higher sales price: Income-producing properties usually sell for more than non-income-producing ones.
- It can be a solution to avoid eviction: If you sell a property with tenants, you won’t have to evict them.
What to Consider When Selling a House with Tenants
Renter-occupied properties can also present some challenges, including:
- It can extend the process: Tenants can be attractive to some buyers, but disenchant others, which can prolong the sales process.
- It can lead to additional costs & inconveniences: Damaged or dated homes may require repairs to appeal to buyers. Besides spending more money, you’ll have to accommodate your tenant’s schedule to get them done.
How Do I Know If I Can Sell My House with Tenants?
It is important to review your lease agreement prior to selling a house with tenants to guarantee that you are complying with Pennsylvania tenant rights. Lease terms must be followed when selling the property.
Pennsylvania Eviction Laws
Landlords in Pennsylvania are not permitted to evict tenants without a valid reason. If the tenant complies with all rules, they can stay until the rental period ends.
Notice to Quit
Generally, a Notice to Quit is a written notification by the landlord that the tenant must vacate on or before a certain date.
A Notice to Quit may be used for several reasons, including:
- There is no automatic renewal of the lease after the term has ended.
- There has been a violation of the lease or rental agreement by the tenant.
- The tenant has failed to pay the rent due as stipulated in the lease.
Depending on the reason for the termination, the tenant must move out by the specified date in the Notice to Quit.
Nonpayment of Rent
Pennsylvania law requires tenants to move out or pay the rent due within 10 days of receiving a Notice to Quit. Tenants can change this deadline if they previously agreed to it in their lease or rental agreement.
Violation of Lease or Rental Agreement
If a tenant violates their lease or rental agreement, the landlord must provide the tenant with 15 (for leases less than a year) or 30 (for leases longer than a year).
If the tenant doesn’t move out of the property by the deadline written on the Notice to Quit (or doesn’t pay the rent due if it hasn’t been paid), the landlord needs to file an eviction lawsuit, in court to force the tenant out.
Should You Evict?
Even though evictions are legal, they can be 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 conflict.
Additionally, you should review Pennsylvania’s landlord-tenant rights and obligations to better understand your responsibilities and rights as a landlord.
How to Sell a House with Tenants
Pennsylvania 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. Advertisements can be made via flyers or For Sale signs, among other methods. You’ll also save money since you won’t have to pay a realtor’s commission.
- 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. The cost 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.
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: Let your tenants know you are selling your rental property. Make sure they know they don’t have to move out and that you will accommodate their schedules. Additionally, inform them ahead of time if there will be any showings or open houses.
- Ensure Your Home is in Order: Evaluate whether you need to make repairs or upgrades on the house. If you want to sell your house quickly, make sure it looks great.
Sell My House With Tenants Fast in Pennsylvania
Selling a house can be a grueling process, and even more so when tenants are involved. With Favor Home Solutions, your house can be sold for cash without spending a penny more and without worrying about working around your tenant’s schedule to get it done. 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!