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Sales

Asset Hero Property Management offers alternative strategies to sell your tenant-occupied home!

The challenges of selling your tenant-occupied home should not discourage you from selling! Asset Hero Property Management has several creative solutions that can be used to get the most of your investment property:

  • Wait until the home is vacant to sell
  • Incentivize tenants with cash for keys
  • Sell to a Cash buyer

Wait Until the Home is Vacant

Depending on how quickly you need to sell, you can wait until the property is vacant to put it up for sale giving you control over the condition of the property to list for sale. Asset Hero Property Management has established relationships with buyers looking to invest on a regular basis and are experts in certain regulations that must be considered when waiting for a vacancy.

You will likely need to issue a 30 or 60-day notice to the tenants, depending on how long they have been in the home. This calls into question multiple notices and important paperwork that, if not completed correctly, could invalidate, and complicate the eviction process even further.

It is also important to consider the additional tenant protections that were added as a result COVID- 19. As of the time of this writing (July 2021) the eviction moratorium is likely to continue through the end of summer. It may be challenging to work with tenants without the help of a property manager.

Cash for Keys

Another option in selling your tenant-occupied home is through a cash for keys agreement, which essentially means paying tenants a sum of money to move out of the property within a certain number of days.

This can create a win-win scenario where you, the owner, gain possession of the home earlier than the lease expiration date, and the tenant receives cash that they can use to transition to their next living situation. These legally binding private contracts are a great way to incentivize tenants to move out before the end of the lease (and to avoid the legal hurdles of an eviction).

This can allow you to sell the property sooner, but it does come at a cost. If you are wondering: “How much should I give a tenant for cash for keys?” There is no correct answer or industry standard.

While there is not a set amount you have to offer, there are regulations surrounding cash for keys renters’ rights. Consider how long the tenants have lived in the property, how early they are leaving, and how much you can offer without undermining your return on investment.

Sell to a Cash Buyer

Asset Hero Property Management has access to buyers who are willing to take on tenant-occupied properties by either keeping the tenants in place or paying and facilitating a cash for keys agreement with the tenants directly.

This is a great way to sell the property quickly and avoid losing money with a cash for keys agreement. Investors may find this to be the most convenient solution because they will not have to wait for the property to be vacant. Cash buyers will also be able to close on the property in as little as three to five days.

Cash buyers typically accept as-is properties, allowing for minimal inspections and viewing.

Asset Hero Property Management will request two appointments at the home. While other buyers may need more time at the property, this is still a quick timeline compared to traditional transactions.

Less property walkthroughs and inspections mean less coordinating with and disturbing of the current tenants in place. This creates a relatively seamless experience for tenants, as the buyers assume the same terms of the lease. Security deposit money would transfer at the time of the sale, and you as the seller can move on after a clean, successful, easy transaction.

Summary

It is entirely possible to sell a home with tenants in place — though it can present some challenges. Asset Hero Property Management has already established a relationship with the current tenants and can successfully market the property to a smaller pool of buyers they have established relationships with.

Luckily, there are a few alternatives that can provide investors with a quick sale and simple closing.

Consider how a cash buyer could help you sell your tenant-occupied home, so you can get started on your next investment opportunity.

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