If you need to sell your house while it still has tenants, you might wonder how the process works and what you should consider. In this blog, we’ll review landlord expectations when selling a house with tenants in Texas. 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?
Selling a house with tenants is sometimes the only option when you need to sell the house quickly.
The good news is that selling a house with tenants living in it has its benefits, including:
- It can make an attractive offer: Since buyers don’t need to find new tenants, buying homes that are already rented might be appealing to them.
- It can allow you to negotiate a higher sales price: Properties that generate income usually sell for more than those that don’t.
- 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
A rental property can also present some challenges, such as:
- It can extend the process: Some buyers may find tenants attractive, but others may find them disenchanted, making the process longer.
- It can lead to additional costs & inconveniences: Damaged or dated homes may require repairs to appeal to buyers. In addition to spending more money, you’ll have to work around your tenant’s schedule.
How Do I Know If I Can Sell My House with Tenants?
It is important to review your lease agreement before selling a house to tenants to guarantee that you comply with Texas tenant rights. Lease terms must be followed when selling the property.
Texas Eviction Laws
Before evicting a tenant, a landlord must terminate the tenancy legally. As required by state law, the landlord must first give the tenant a written notice. The landlord can file an eviction lawsuit if the tenant doesn’t move out after receiving the notice.
Nonpayment of Rent
Rent is considered late after a day has passed since its due date. It is possible that a grace period will be available if it is stated in the lease/rental agreement. A landlord must give the tenant a written 3-Day Notice to Vacate before starting the eviction process.
Tenants who pay rent within those three days do not face eviction. When a tenant cannot pay, the landlord may offer them a second chance, but they are not legally obligated to provide one. The eviction process can begin immediately after three days have passed.
Violation of Lease or Rental Agreement
For the duration of the tenant’s stay, the rental lease agreement must be upheld by both the tenant and the landlord. An eviction notice must be issued by the landlord if a tenant violates any terms of the lease agreement. Eviction proceedings are halted if the issues are resolved by the tenant on time.
Lease violations can include:
- Damaging rental property
- Smoking in non-smoking areas
- Keeping pets in pet-free housing
- Staying longer than stipulated on the lease
- Causing a disturbance to other tenants with excessive noise
The landlord may proceed with eviction if the tenants do not resolve the violations on time.
A landlord may issue a 3-Day Notice to Vacate to a tenant who has engaged in illegal behavior within the property. Additionally, any evidence of illegal activity must be reported to the police.
Examples of illegal activities include theft, assault, violence, subletting without approval, or the consumption, involvement, creation, or distribution of illegal drugs. Tenants should be closely monitored by landlords to ensure illegal behavior isn’t overlooked.
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
Texas 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 can accommodate their schedules. Also, let them know if there will be any open houses or showings.
- Ensure Your Home is in Order: Assess whether your home needs repairs or upgrades. The best way to sell your house quickly is to make sure it looks good.
Sell My House With Tenants in Texas Quickly
The process of selling a house can be grueling, and even more so when tenants are involved. With Favor Home Solutions, you can sell your house for cash without spending a penny more or working around your tenant’s schedule. 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!