It might be confusing to know how the process works and what considerations you should make if you need to sell your house while it still has tenants. In this blog, we’ll review landlord expectations when selling a house with tenants in Wisconsin. 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 oftentimes the only way when you need to sell the house quickly.
The good news is that selling a house with tenants in it comes with its benefits, including:
- It can make an attractive offer: Buying a home that is already being rented may appeal to buyers who don’t need to find new tenants.
- It lets you negotiate a higher sales price: Income-producing properties tend to 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
Rental properties also come with a number of challenges, such as:
- An extended sales process: Tenants may attract some buyers but disenchant others, thereby prolonging the process.
- 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.
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 Wisconsin tenant rights. Lease terms must be followed when selling the property.
Wisconsin 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 number of days associated with the notice will vary depending on the reason for eviction.
Violation of Lease or Rental Agreement
Lease agreements can vary between tenants; nonetheless, landlords and tenants must adhere to the lease terms at all times.
Lease violations can include:
- Not paying rent on time
- Overcrowding the rental unit
- Smoking in non-smoking areas
- Keeping a pet in a pet-free rental unit
The landlord has legal grounds to refuse to let the tenant correct the violation (or pay overdue rent) if the tenant is a month-to-month tenant. Rather than a 5-Day Notice to Comply, the landlord must provide the tenants with a 14-Day Notice to Comply.
When a landlord wishes to grant the tenant an opportunity to fix a violation or pay rent on time or if the tenant has a tenancy of more than a year, they must give them a 5-Day Notice to Pay/Comply, a 5-Day Notice to Comply, or a 30-Day Notice to Comply.
If tenants fail to resolve the issue (or pay rent) after being given notice, landlords can continue to file for eviction.
In the event that a tenant engages in illegal activity on the rental property, the landlord must give them five days’ notice to vacate. All tenants residing inside the rental unit are subject to the violation.
Illegal activities include, but are not limited to:
- Involvement in criminal activity
- Endangering the safety of neighbors and other tenants
- Creating, distributing, or consuming controlled substances
It is not possible for tenants to fix their violations. The landlord can file for eviction if the tenant remains on the rental premises after the notice period has expired.
Under Wisconsin state law, a landlord must give a 5-Day Notice to Quit to tenants who are deemed a threat to another tenant and meet the conditions below. After receiving this five-day notice, the tenant has five days to vacate the property or face eviction.
The conditions include:
- There is a protection order against the tenant
- A criminal complaint has been filed against the tenant, alleging stalking, domestic abuse, or sexual assault
- A condition of release prohibits the tenant from interacting with the person they are deemed a threat to
Non-renewal of The Rental Period
When a lease term ends and no renewal is arranged, a tenant can be evicted. Eviction notices of this type are usually used by landlords who wish to terminate the lease of their tenants. Tenants are required to give notice depending on their tenancy type or lease term.
Week-to-week tenancies require a 7-day notice, while a month-to-month tenancy requires a 28-Day notice. Tenants who continue to occupy the rental premises after their notice period ends may be evicted by the landlord.
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. Moreover, landlord-tenant laws should always be followed.
How to Sell a House with Tenants
Wisconsin 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 ensure it looks good.
Sell My House With Tenants in Wisconsin 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!