Tenant Can Make or Break a Sale

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Dear Sue,

I own a rental that I really need to sell. I want the tenant to cooperate with my agent so that my property can be easily sold. My Realtor has shared horror stories about tenants that have sabotaged sales. Do you have any tenant tips for a smooth transaction?

Landlord Lou

Dear Lou,

A tenant facing the loss of his or her home has no motivation whatsoever to cooperate with a sale. Think about it, why would a tenant want to help disrupt his/her life?

Bottom line: An uncooperative tenant can make or break a sale. You are wise to do what you can to get your tenant to work with you.

The selling process can take time. The tenant’s time and assistance is worth something. The property will need to be maintained and reasonably available for showings and broker tours. The provision for showing can be found in your rental agreement. Most agreements require that the tenant be given a 24-hour notice.

I suggest that you and your real estate agent meet with your tenant to discuss your need to sell. Answer questions and explain the selling process so that your tenant understands what’s going on. It’s important to have compassion for your tenant’s situation. You may want to motivate your tenant to cooperate by offering a month’s free rent for full cooperation. Agree to pay it upon the close of escrow.

Let your tenant know that if over zealous agents don’t give ample notice that he/she has an advocate in your agent. Provide your agent’s phone number along with permission to call at any time. This will help to alleviate a lot of anxiety and frustration.

Be sure to make your sale subject to tenant’s rights. If your tenant has occupied the property for a year or more California law requires that he/she be given a 60-day notice.

Let your tenant know that if he/she finds a new place to live that you would be willing to prorate the rent without having to receive a 30-day written notice. It’s also helpful to release a portion or all of the tenant’s deposit before the move out. It will help him/her with deposits on their new rental.

If you help meet the needs of the tenant they will help you to meet yours. It’s a matter of good home dollars and sense.