If you own a rental house in Pinellas County and have tenants inhabiting it, you are still able to sell the home. However, there are certain legal conditions you must follow. Before you begin selling your rental property in Pinellas County, it is best to start with reading your lease agreement so you have a better understanding of the requirements and regulations in place.
Review The Landlord/Tenant Lease Agreement
Before you make a move to sell, review the lease agreement between you and your tenant. There are two different types of agreements and both can have very different meanings and ways of handling certain situations. The main two types of lease agreements are month-to-month or fixed-term. Make sure you know which one you have executed with your tenant.
* Month-to-Month Lease Agreements
Tenants renting on a month to month basis require a 30-day notification before their move out date. This can be done via letter or email without a reason to end the agreement. The amount of notice time given can vary depending on your State, so double check the State laws in Florida and Pinellas County.
* Fixed-Term Lease Agreements
A fixed-term lease is any lease that is not on a month-to-month basis. Most of these fixed-leases are a year long, but they can be shorter or longer. These agreements require more caution due to the legality of the lease terms.
Before you inform your fixed-term tenant that you will be selling, there are a few options to choose from.
- Wait for the lease to expire
When you have a good tenant, one of the best things you can do is wait until the lease is up. Once the lease expires, you need to send a notice of their non-renewal. Check with the Florida State law or Pinellas County local government so that you know what the exact notice period is.
Selling In Pinellas County with People Living in Your Rental Property
This may not be the easiest option, but you can definitely sell your property with an active lease. The new owners should allow the existing tenant to live in the property until their lease expires. There should be no increase to the tenant’s rent and you can include an option to renew if you desire to keep the existing tenants in the rental property.
Keep your current tenant in mind during showings to future prospects. Give the tenant at least 24 hours’ notice (varies depending on state laws) and tell them when you will be showing their space.
You should show the property at reasonable times, such as while they are at work. Showing during business hours is convenient since the tenant is less likely to be home.
Give Your Tenant a (Good) Reason to Leave
The fastest way to sell your non-vacant property right away is to negotiate with the tenant. If there is still time before their move-out date, you can try the “cash for keys” tactic. This essentially buys your tenant out of the space.
Not sure how much to offer to your tenant? A good rule of thumb is to estimate what the difference of your tenant’s new rent will be. You can also offer to chip in for move-in charges such as fronting the security deposit or moving truck fees.
If the tenant declines your offer then you will need to postpone selling until their lease ends. You could also offer other incentives such as paying for a monthly cleaning service, providing them with a relocation allowance, or taking care of their utility bills.
Conclusion To Selling Your Rental Property In Pinellas County With Tenants Still Living In The Property
Selling property in Pinellas County with tenants in it can be challenging as it may involve telling your tenants that you are selling the property they are living in. The downside to this is anticipating what will happen when your tenants do not take it well when you tell them they have to move out.
One of the hard parts about selling your occupied rental home is that you have to let the existing tenants know they have to move out. This could lead to the tenants purposely trashing the place or talking badly about your property.
To help soften the blow to your tenants, suggest offering them a lower rent while encouraging them to keep their home in broom-swept conditions. You may also want to consider including incentives such as paying for moving costs.
You can sell your home with tenants living in it still. While it may not be the best or most comfortable option, it is best for those who need to sell immediately. If you think you will eventually need to sell your property, consider making your lease agreements month-to-month.