In our current low inventory climate, any listing may sound like a good listing, but take note, tenant occupied rentals—as you can imagine— may come with their own set of issues.
The most commonly raised concerns are:
- The tenant does not want to move or vacate the property
- The property may not be pristine for showings or photos
- The tenant may simply not cooperate when it comes time to show the home
Although not all tenants will be cooperative, some will and they may even consider buying the home if asked. So, after it’s listed, just ASK them! Then send them to me for a complimentary pre-approval for either the subject property or another property that you show them.
To mitigate any potential tenant concerns, consider the following options:
- Ask the seller about the tenants to get an overview of who lives there. Identify if there are any known times or days that work better for them than others (maybe they work the night shift). Find out what they do for a living. Identify if they have been good or difficult tenants. But most importantly, find out if they been notified that the home is being listed.
- Meet the tenants to establish rapport and always treat them with compassion and empathy. Explain the listing and sales process to them and what they should expect. Confirm their work schedule, their contact information and help them prepare to move by providing them with packing tips and any contacts you may have for moving companies.
- Consider hiring a cleaning service. If the home is unkempt, this could be especially important. Let them know that at your expense (or the sellers) and at their convenience, you will be hiring a cleaning crew to come in and clean carpets, wash down cabinets and work through a general cleaning checklist. If needed, consider hiring the cleaning crew to return on a bi-weekly basis until the home is sold.
- Provide reasonable notice to the tenants when showing the home. Assure them and then stick to not doing any surprise showings, always providing them with a 24-hour notice. Ask them if they could kindly make the beds and pick up around the house for those showings.
- Remember, the tenant could be a potential client for you! Ask them upfront if they are planning to rent again and if you could be a resource to help them find another home. Or ask if they would like to buy a home and then refer them to me for a complimentary pre-approval. If they are not able to buy now, I will provide them a strategic plan that if they follow, will help them become future buyers, which means a future client for you.
- As an added incentive to obtain the tenants cooperation, find out if the seller will reduce their rent while the home is being shown.
Would love to see what’s worked for you! Please share your comments below!