Being a landlord in Stockton, Sacramento or anywhere in California, for that matter is not what it used to be. if it’s not one issue with a tenant it’s about the rules of engagement and progressive, ongoing erosion of an owners property rights for the past 30 years. Unfortunately, it isn’t getting any better and that erosion has continued with new State and Federal HUD regulations that make it impossible for a property owner to exercise their rights without costing a lot of money. Now with rampant talk of “Rent Controls” in many communities, and added new tenant rights; here is my question; is it all worth it?
I talk to a lot of landlords and sometimes they say that they have just had enough.
Selling any house in Stockton has its challenges, but when you add tenants, its a whole other ball game. I am hoping this article helps you if that is what you are looking to do.
As I write these articles I sometimes wonder what insight am I going to give a seasoned landlord that they dont already know. It’s then that I realize that not all seasoned landlords are directly involved in their rentals and one day there may be one article that catches your eye and you to call me. I do this because my exposure is limited to the people that I know and that is a very small slice of the universe.
Selling a house under normal conditions in any real estate market is difficult enough. Everything that you add to the equation just complicates the process and narrows the potential universe of buyers even further.
Most homes being sold in today’s market are occupied by the owner and most buyers are used to walking into a house with furnishings in place, clutter and a lived in house. It is assumed that they will be cooperating with any potential buyers or buyer’s agent to make sure that the house is presentable and ultimately sold. That is the goal of the seller so that is what they typically do.
So, what changes when the occupant is not the owner, but a tenant that has a legal right to be there? EVERYTHING. First, the list of potential buyers evaporates as most buyers are not real estate investors looking to buy a rental property. Even experienced real estate investors or cash home buyers would prefer have a choice of their own tenants inside a house rather than inheriting them from the current owner.
With only so many buyers in any market and its important to be mindful of the things that you can do to turn them off. Last week’s yard waste still on the side of the house, the ripped off screen door in front, the buckled flooring in the bathroom, the broken tiles in the kitchen or bath, or just the way that the cars are parked can send a Buyer looking at the next house.
Couple that with an angry tenant to greet a buyer and you have a recipe for disasters. Threatened tenants often sabotage a sale at hello. Ask any real estate agent about the dangers of showing a house with renters. Renters are not the best sales people and because they will mot likely have to move, the showings are invasions of their privacy and what they consider to be their home to be sold.
But if you are intent on selling your rented property, make sure you do everything by the book and give the tenants at least 24 hour notice if you need to show the house. As silly as it may seem, you may have to offer them incentives for cleaning and leaving the property in its best light prior to a showing.
Tenants DO NOT Have To Co-Operate When You Sell?
It is not up to the renters who you sell to, but they have more of a power than you think.
If first impressions are important, then second and third are priceless and while you can sell your property to anyone, keep in mind, that your tenants aren’t there t0 help you in that process. Keep in mind that if there is a the lease, it will remain in effect as well. Give your tenants at least 24 hour notice before someone enters the property, and dont be surprised if even an agreed upon date is cancelled. While its true that tenants must give reasonable access to the property, your tenants don’t need to be nice and cooperate.
What if I don’t have a written lease agreement?
If you don’t have a written lease agreement, it is assumed that the lease is month to month. If this is the case, you’re must give at least a 30 day notice to vacate. Keep in mind that if you want your tenants gone before you sell or close, you may have to pay them what I call Cash for Keys. Its legal but it must be in writing. Also keep in mind that If the tenants have been occupying the property for more than 1 year, this notice may increase to 120 days. Check with the an eviction specialist that handle evictions like us if you are not sure.
How to get Tenants To Cooperate When Selling A House
Only a buyer can tell you whether selling a house with long term lease will affect the sale and the property value, because they are the only ones that need to agree to the transaction.
For me, I buy tenants out because they are seen as “in the way” or a liability because as much as I may want to buy the house I am not crazy about buying your problem tenants. I see the challenge as convincing someone else to purchase your problem and that is harder than you may think.
The truth is even good tenants pose a problem for most potential buyers as you can be certain that they will in some manner affect any the sales price. I believe that most buyers will not want to take possession of a house or close escrow while the tenant is still in the house. Having experience in both buying and selling houses while having an ongoing eviction is both costly and time consuming.
One last thing to remember, renters are famous for exit scenes and can cause so much damage. It is better to give even the best rener and incentive to behave than roll the dice and take the risk and just let whatever happens, happen. In the case of evicting a tenant create a positive exit strategy that pays them cash for keys as an incentive to avoid an eviction.
Still Determined to Sell A House With Tenants In Stockton
The easiest way to sell your house with a tenant is to try to get the tenant on YOUR side. There are a number of ways to do this.
- Ask them for their help.
- Give tenants at least 24 hour notice.
- Offer moving expenses to the tenants.
- Compensate the tenant every time there is a sbut only pay once the property is sold.
Great Tenants or Bad … If you are NOT honest with them right away, it will probably cost you a lot of money. Be honest with them about what you want to do, protect them and build a plan B if they become uncooperative.
Should You Hire a Real Estate Agent or Sell to a Cash Home Buyer in Stockton?
If you hire a real estate agent dont expect a lot of open houses or results. Real Estate Agents spend all of their energy attracting buyers of vacant single family homes. Sure, some real estate agent is going to take your listing and shop it to the We Buy Houses Company’s like mine and you are going to pay the 6% commission.
You can avoid that commission and the paperwork associated with a real estate agent and the closing cost by calling a cash house buyer yourself.
My name is Peter Westbrook and I am a cash home buyer in Sacramento, Stockton, Modesto and Manteca CA. I am the owner of Westbrook REI and I have been in the real estate investment business for for many years.
If your Selling a House With Tenants In Stockton and are looking for an offer … Fill in the quick form below or call us at (209)481-7780 or visit our website and we’ll deal with the existing tenants for you! If necessary we’ll honor the existing lease, offer a cash incentive for them to move or start the eviction process.
We have years of experience and we are here to help. Click here to find out more.
There are many reasons why a direct sale is beneficial for people who need to sell their house with tenants in Stockton. Not all investors are happy to take over a property that already has a tenant in place, especially when they are in good standing. It saves them time and money advertising, marketing, and showing the property. They won’t have to bother screening tenants or running the background checks because those things have already been done. Even if there is a difficult tenant living in the home, an experienced investor won’t have trouble pursuing the eviction process if the tenant is in violation. They have likely had to do it before, and won’t be bothered by the process.
If you want to sell a house with tenants in Stockton, there are certain ways to go about doing it. Always make sure you are being fair to your tenants, and giving the proper amount of notice. Not only is it the law, but it is the right thing to do.