The strong seller’s market in the Twin Cities & suburbs has prompted homeowners to consider selling their condos, single-family homes and multi-family properties. What if your property is a rental unit with tenants in place? Can you still sell and take advantage of the rising home values? Yes, by understanding the steps and following a few tips, you maximize your profit in this strong market.
The first step in selling your home with tenants in place is to understand your rights and responsibilities. The kind of lease you hold will determine if you can simply give notice to the tenants or if the new owners will buy the home with a lease in place. Only month-to-month leases can be terminated unilaterally with
Next, you might want to meet with the tenants and discuss the situation. Explain your reasons for
selling and assure them that you wish to make it as easy as possible. An option is – to offer to sell the home to the renters first, and then discuss any future plans they may have. If they can’t or don’t want to buy the property than you will need to move forward with selling the property. Your goal is to have the cooperation of your tenants, so they will help facilitate showings and maintain the home.
When you have tenants, who will remain in the property after the close due, then you must disclose the lease terms to the buyer. The new owner will be obligated by the term of the lease. In a strong market, you may find a buyer willing to wait for the expiration of the lease, even if they intend to occupy the home.
Selling with tenants in place doesn’t have to be difficult. Do your homework, understand your obligations and be transparent with the renters and potential buyers. This way, you make it easy on all parties and can reap the reward of high home values.
If you’re looking to sell or buy a home or multi-family property in the Twin Cities or the surrounding areas, please feel free to call, text, or email me at your earliest convenience.
Shannon Lindstrom, Realtor®, AHWD, GREEN
7373 Kirkwood Court No, Ste. 300
Maple Grove, MN 55369
Minneapolis Area Association of Realtors – 2019 Exceptional Service Award Recipient