Time to enact your exit strategy on an income property as a part of your original investment strategy? Or have circumstances changed and it is now in your best interest to sell rather than hold your income property, read on to learn the best way to proceed. We will cover the top tips for selling your house in Philadelphia if you have tenants.
For your tenants this is more than a business transaction, it is their home, so treading lightly considering the emotions that may be stirred at the news is a wise path when you advise them of an impending sale and change of ownership. It is important to be aware of their rights and the terms of the lease if you have tenants when you’re selling your house in Philadelphia. Unless the lease was written to allow for early termination, they have the right to remain in the home as tenants, until the end of the lease term. This could be rather tricky, especially if your potential buyer wants an empty property, A misstep with how you handle your tenants could possibly land you in legal trouble.
Paying your tenants to sweeten a request to vacate the premises prior to the end of the lease is another tip for selling your house in Philadelphia if you have tenants. If you find yourself in a position that exiting the property prior to your originally planned exit date becomes necessary, you may be able to pay the tenants to leave. This benefits you firstly because when the tenants vacate, you can make any updates or repairs before showings, empty housing statistically sells much faster and you are alleviated of any risk of legal fees for breaking the lease early. Let’s face it, if your tenants would prefer the property not to sell and emotional at the prospect of losing their home, lack of cooperation could make the process difficult.
Rent to Own
Renting to own as an exit strategy makes for a longer period of time for a full exit, but may be well suited for those in a good financial position with reliable tenants. If you have built a good rapport over time, you could inquire as to any interest in a rent to own agreement, when you are selling your house in Philadelphia if you have tenants. Typically the tenants would become responsible for the property, as if it were already fully their own and the term is over a two-year period, to allow time for correcting any credit issues. A down payment is typically made and because you are working with them, you may be able to set a higher price. Regrettably, higher profits come along with higher risks. One of which is common to most rent to own agreements, the tenant may decide at the end of the term not to buy and walk away, extending your exit strategy for an unknown length of time.
Selling Your House Directly
Do you have tenants? Are you ready to stop being a landlord now without any hassle? Want to know the best tip for selling your house in Philadelphia? Sell to Mike Buys Houses! Why wait for months or even years? You can stop worrying about your property 24 hours a day and leave the hassles of collecting rent behind. Mike Buys Houses buys property as is, so you’ll no longer be responsible for maintenance or repairs. Mike Buys Houses buys homes with tenants in them just for this reason. Why not make it easy on yourself and your tenants? Call Mike Buys Houses at 267-984-4765 or send us a message to learn more about how we can help you.