Common Mistakes Landlords Make When Selling Tenant-Occupied Homes

Making the decision to sell your home can be extremely thrilling and challenging all at the same time. However, it can become even more challenging when you’re selling tenant-occupied homes.

There are several mistakes that can occur when you’re selling property in California and we’re here to detail what some of those are. Understanding these things will help you to reduce the chance of these mistakes occurring and making the most out of the sale.

Read on now to learn what you need to know about tenant-occupied homes and selling them. 

selling a tenant occupied property in California

Failing to Understand Tenant Rights

The first mistake many landlords make is failing to fully comprehend the tenant’s rights before putting the home up for sale. Not adhering to tenant rights could mean you face severe repercussions legally, which aren’t things you want to deal with when time is of the essence.

Several tenant laws are in effect, even if you want to sell the home they are living in. First, you need to know that when a tenant signs a leasing agreement, it ties them to the property.

This means that even if you sell the home while they are still living there, they have the right to remain there until their lease has expired. The person who buys the home will be legally bound to honor the previous agreement until it expires, and they can have the tenant move out.

Another right that tenants have, although it can prove to be slightly frustrating, is they can leave the home in whatever state they wish to leave it in. When you’re conducting home sales while people are still in the property, their motivation to clean things up is reduced.

Because of this, it can cause your home to remain on sale longer than you’d initially planned for it to. If you want to get a bit of help from the tenants you currently have, you will likely need to offer some form of incentive.

The incentives you offer could be a range of things. You could help them move into their new place and offer to cover the cost of moving. Or, in some cases, it could mean reducing the last few months of rent they pay so they are able to afford the move.

You’ve got to think of something that will make their life easier if you’re hoping they will help you out.

Getting A Cash Offer on a rent house

Miscommunication and the Repercussions

The next mistake you want to avoid is failing to communicate properly with your tenants. Not only does this mean you and your tenants are working on different schedules, but it also, like other things, can have a host of legal repercussions you don’t want to deal with.

If your tenants don’t know that you plan to sell the house, it can cause several problems. They will be caught off guard and struggle to find another place to live, but it could also mean they take you to court for not providing them with the proper amount of notice before you sell the home.

We recommend you create a timeline between when you initially communicate your choice to sell the home, listing it, and selling it. You need to send a communication in the form of an email or certified letter to ensure there’s documentation that you provided the tenant with the appropriate amount of notice.

From there, you will need to schedule a walk-through of the property if you intend to make repairs and upgrades before the home sells. Remember, even if there are some things you want to do, the current tenants don’t have to allow you to come in and make changes to the property.

After all, they are still living there, and you may be disrupting their daily tasks with your presence. Being transparent and upfront is always the best option compared to hiding things from your tenants.

If you need clarification on the consequences of infringing upon your tenant’s rights, we recommend you do some research. We ask that you review the tenant-landlord rights in your state.

This will ensure you’re taking the right steps to sell your home the right way, even if tenants are still occupying the home now.

Underestimating the Importance of Property Presentation

The last mistake we want to discuss is underestimating what it takes and the importance of presenting your property in the right light. You want to draw interest in the home in hopes that it will sell.

However, if you don’t present it right, you can do the opposite of what you’re trying to do. Presenting your home to potential buyers begins with the listing you post on websites for potential buyers to see.

You need to ensure that the photos you attach to the listing are correct. You should also do your best to personalize the listing to help it stand out from other listings that potential buyers could be looking at.

You should also note all of the pros of your property in the listing. This would mean different amenities and upgrades that come with the home. Some people overlook the need for landscaping, but you should realize that the home’s exterior acts as the first impression people will have.

If the exterior doesn’t look good, it can reduce the chances of people wanting to see anything else the home offers. Lastly, ensure the interior is generally clean and tidy.

Again, if you want your current tenants to help you present the property correctly, you will need to offer them some form of incentive to do so. And be prepared for them to say no because that’s also a significant possibility.

mistakes to avoid when selling occupied rental house in california

Mistakes to Avoid When Selling Tenant-Occupied Homes

Selling occupied rental property can prove to be more challenging than selling any other property. There are several mistakes that can be made and we’ve listed a few above.

Ensure you take the time to communicate properly with tenants and don’t overlook presenting your property in the best way possible. We want to help take the guesswork out of selling property in California.

Sell your home with Premier Property Buyers today. Contact us so we can tell you how everything works.