Selling a property is equally exciting and stressful. On one hand, you are about to free some cash that could be invested elsewhere. On the other hand, however, the selling process is often accompanied by a package of worries, legal aspects, and uncertainties. Especially when you’re considering selling a house with tenants in Kansas City.
You could be an investor who owns a number of properties. You could also be someone who resides in a different location and likes to make some money on the side by renting their home. Regardless, there are a few things to keep in mind when selling rental property with tenants. Being informed and prepared can not only ensure a smooth and successful selling process but it could also save you a lot of unpleasant surprises and legal conflicts.
In this article, we will equip you with important information about what you need to remember when selling your rented property with sitting tenants.
Tips And Options On Selling A House With Tenants In Kansas City
Finalizing your Plan to Sell the House
For starters, gather all relevant information and make all the necessary decisions when it comes to how to sell your house in the first place. Do your research and speak to professionals to establish the right selling price, decide how you will market the property to potential home buyers, and gather as much additional information as you can. Find the tenancy agreement with your current tenants and check when the agreement ends. It may be more beneficial for you to wait until the property is free before you let potential buyers view the house. Get in touch with your tenants to discuss your plans to sell and see how they feel about it. They may be understanding and ready to make the necessary changes but this may not always be the case.
Wait Until The Lease Ends
As an owner of the property, you have your right to take any action that you want with your property. At least to some extent. There are also certain tenant rights in Missouri that you need to take into consideration. For instance, landlords do not have the right to simply force the tenants to leave the property once they have made a decision to sell. The tenant rights in Missouri that apply protect the residents of the property. There are some exceptions that we will go over later on in this article. But first, let’s see how you can easily deal with tenants in order to reach a mutual agreement.
Dealing With Tenants
Regardless of whether your tenants are easy to communicate with or not, contacting them once you’ve decided to sell the property is an absolute must. Besides, it can save you a lot of frustration and doubt.
Communicate and Inform The Tenants
When selling a house with tenants still living in it in Missouri, as a landlord you are advised to communicate with them openly and honestly. Although you won’t be able to ask them to leave before their lease agreement is over, other options may be more favorable for both sides.
- Propose a Special Arrangement with the Tenants
In some situations, you may be able to reach a special agreement with your tenants. For instance, if you are selling your property to another investor or someone who will not be moving in before the tenancy agreement ends, they may be happy to take over the rent and enjoy additional monthly income with no extra effort. This way, your tenants will have enough time to find a new rental property, you will be able to complete the sale, and the new owners will be happy about the rent coming in the bank account.
- Offer a Chance to Tenants to Buy the Property
Alternatively, you could speak to your tenants about the sale as potential buyers. Selling a house in Kansas City can happen faster than you could have ever imagined with the buyers being right in front of you. Especially if the tenants have spent years living in your property, the likelihood is that they have grown an attachment to the property and will be happy to make it their own. Discuss the possibility and see if their financial resources match your expectations for a selling price.
Deal with Cooperative Tenants
Communication is easy when your tenants are cooperative and open to new ideas and solutions. Notifying them about the sale will be enough for them to make a decision on what they would like to do next. Don’t’ forget to regularly stay in touch with them and update them with any changes that take place during the process. Make sure to speak to them about convenient times for property viewings and agree on all other steps that will involve them during the process.
Deal with Uncooperative Tenants
Unfortunately, not all tenants will embrace contacting landlords openly and positively. If your tenants fall under this category, you’ve likely experienced difficulty with them already. Missouri tenant eviction laws are there to support you in case that your tenants are uncooperative and fail to continue abiding by the requirements of your existing contracts. For example, they may have caused damage to your property, they may be regular party people that make noise and cause conflict with neighbors, or they may constantly have something to complain about regarding the property. They may completely refuse to be compliant with property viewings. In such cases, there are certain actions that you may take to stay protected.
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Review Tenants Right and Lease Agreement
If you feel that your tenants are not complying with their tenancy agreement and are difficult to communicate with, there are a number of solutions that you can undertake. You could even terminate the contract under special circumstances, in compliance with Missouri tenant eviction regulations. In order to evict your tenants before their lease agreement ends, you will need to have a valid cause. In most cases, this cause is related to the inability or refusal of tenants to pay rent on time. You could also file for eviction if the tenants are violating parts of your tenancy agreement. Alternatively, you could also legally force them to leave if they are involved in illegal sales, prostitution, gambling, drug sale, and more. They could be subletting your property, which is also illegal and a legit reason for eviction.
The notice that you will be obliged to give to your tenants for eviction when having a valid cause will depend on its characteristics. For instance, you may need to give a ten-day notice to vacate if there are proven lease violations, illegal activities taking place, subletting, or property damage. If the tenants fail to comply, you are to file an eviction lawsuit with the court.
Determine your Legal Options
In order to take the appropriate measures, you need to be armed with reliable and sufficient information about your legal rights and your tenancy agreement. Keep in mind that in the case of uncooperative tenants who have violated your contract, they could always seek defense and try to turn things around. Their defense could be, for example, that you have discriminated against them. In this case, the investment of time and money into lawsuits increases dramatically, causing serious postponements of your potential property sale. To prevent this, you may want to partner with a professional or regularly speak to the relevant institutions to ensure that every step that you make is the correct one for your specific situation.
Selling a house with tenants in Kansas City certainly has its peculiarities. However, with enough information, adequate decision making, and open communication, the property sale with tenants could be a pleasant experience. Partnering with the right home investors like Offer House who can make the process quicker is a great and valuable advantage for the homeowner. This allows you to receive a reasonable selling price for your property, complete the sale effortlessly and stress-free, and have no conflict with your tenants. After all, in most cases, investors are in search of more money-making avenues, and renting out to tenants is one of them. Simply let them take over and enjoy the money coming into your bank account from your property sale.
We hope that this article has provided valuable insights into the world of selling property in Kansas City with tenants still occupying it. Hopefully, you are now better prepared to make the right decision.