There are many reasons landlords sell your homes with bad tenants but it is important that landlords recognize tenant’s rights and follow legal procedures to avoid charges of discrimination. Bad tenant abuses may be bold and indisputable but tenants have rights and frustrated landlords can spend time and money getting rid of bad tenants and/or the property in which they reside.
About Bad Tenants
There are other reasons landlords decide to sell property but bad tenants do present major challenges. You may have inherited a building with bad tenants or you may be retiring and choose not to keep fighting endless battles with bad tenants, but whatever the reason make sure you understand the state’s laws regarding tenant’s rights before digging yourself a deeper hole.
No matter how bad and irresponsible the tenants is, you might be surprised how well they know the law. Bad tenants might enlist advice from a Consumer’s Affairs Landlord hotline or consult with an attorney to get advice. It is natural that landlords sell your homes with bad tenants, but expect resistance from indignant, informed tenants.
There are two types of leases; month-to-moth leases and fixed-term leases. Regardless of your credit and background check, bad things can happen to good people. That tenants who looked squeaky clean can come upon hard times or can experience a job change that makes them less inclined to honor the lease or rental agreement.
Experienced landlords know tenants can knowingly or unknowingly become bad tenants. Yet, good tenants and bad tenants tend to regard their rental unit as their personal property and usually resist a change of ownership.
Selling Your Month-to-Month Rental Property
It is easier for landlords to sell your house with bad tenants if they are in month-to-month agreements rather than in fixed-rate, longer term leases. Technically, with month-to-month agreements, the landlord can deliver a letter to the tenant giving 30-day notice to leave by a specific date. The specific notice requirement can vary from state to state but they are similar.
Most month-to-moth 30 day notices are deemed “no cause” terminations, meaning that the landlord does not need to give a reason to terminate the rental agreement. The “no cause” termination policy is the biggest reason landlords choose month-to-month rental agreements.
Your 30-day notice should include provisions with a specific termination date and a notice to remove all possessions and equipment on or before the stated date. You should also demand the keys be returned to you or your agent on the date.
Problems begin when the tenant does not vacate in a timely manner. That is when landlords initiate an eviction process, an expensive, time consuming undertaking that pits the landlord against bad tenants. This often drives landlords to sell homes with bad tenants.
Selling Rental Property with Fixed-Term Leases
When landlords sell your home with bad tenants, fixed-term leases can pose more problems than properties with month-to-month leases. Landlords have 5 choices:
- Wait until the lease expires – If the bad tenant is paying rent, you can bite the bullet and wait to sell after the current lease expires. If you can substantiate that the tenant is in violation of lease terms, you can attempt to terminate the lease with proper notice. If challenged, this can cost money and time.
- Sell with an active lease in place – Landlords who sell their properties with bad tenants have the right to do so, but the existing lease will stay in place and the tenants will remain in the property for the new owner to manage. An experienced buyer may insist upon a disclosure statement about the quality of the leases.
- Pay your bad tenant to leave – One way landlords can sell homes with bad tenants is to pay the tenants to leave. This option is usually described as “cash for keys.” The tenants may also insist upon the landlord paying moving costs.
- Sell the property to your tenant – Landlords who sell the property to bad tenants kill two birds with one stone. However, you may be faced with a decision to provide owner financing.
- Initiate an early termination clause in the lease – If your lease has an early termination clause, usually 30, 60 or 90 days, you may be able to execute an early termination clause.
As you can see, landlords can sell homes with bad tenants but be prepared for unexpected and costly resistance. Or, do what many other landlords have done and contact www.Sellyourhomefastonline.com for a quick, contingency-free, all cash sale of the house with bad tenants. This just may be the best route for landlords to sell their properties with bad tenants.