Selling a house is already a big task, but selling a house with a tenant living in it? That can feel like a whole different ball game. But don’t worry—if you’re in Texas and facing this challenge, you’re not alone! Let’s dive into how you can sell a house with a tenant and make the process as smooth as possible (for both you and your tenant).
Can You Even Sell a House With a Tenant in Texas?
First things first: yes, you can absolutely sell a house with a tenant in Texas. There’s no law that says you can’t. However, it’s a bit trickier than selling an empty house. The good news? You’ve got a few options depending on the kind of lease your tenant has and how cooperative they are.
Let’s explore how you can go about it!
Option 1: Sell the House With the Tenant Staying
This is probably the easiest route if your buyer is an investor who doesn’t mind having tenants. Investors often prefer buying properties that already have tenants since it saves them the hassle of finding someone new to rent the place. It’s a win-win. You sell the house, and the tenant doesn’t have to move.
Key Things to Keep in Mind:
- The Lease Stays: If the tenant has a lease, it stays in place even after the sale. So, the new owner must honor the existing agreement.
- Security Deposits: Make sure you transfer the tenant’s security deposit to the new owner, and let your tenant know about it.
- Notice of Sale: Give your tenant a heads-up that the property is being sold, and keep them in the loop about what’s happening.
Option 2: Ask the Tenant to Leave (But Be Nice About It!)
If you want to sell the house vacant, asking the tenant to leave might be your best bet. But be careful—tenants have rights, and you can’t just kick them out without following the proper steps.
Here’s How to Handle It:
- Offer Incentives: If you ask nicely (and maybe offer some cash to help with moving costs), tenants might be more willing to leave early. This is called “cash for keys.”
- Give Proper Notice: In Texas, if the tenant is on a month-to-month lease, you’re required to give them a 30-day notice before asking them to move out. However, if they have a fixed-term lease (like a 12-month lease), they’re entitled to stay until the lease is up.
- Be Considerate: Remember, moving is stressful. Try to work with your tenant, not against them.
Option 3: Wait Until the Lease Expires
This might be the least exciting option, but if the tenant has a fixed-term lease and you don’t want to go through the hassle of trying to sell with them still living there, you could wait until their lease is up before putting the house on the market.
Pros of Waiting:
- No Tenant Drama: You won’t have to deal with any awkwardness or tenant concerns during showings.
- More Buyers: Some buyers prefer to purchase homes that are vacant, making it easier to show the place and potentially increasing your chances of a faster sale.
Cons of Waiting:
- Time-Consuming: You’ll have to wait for the lease to end, which could delay your plans if you’re looking to sell ASAP.
Showings and Tenants: How to Keep Everyone Happy
If you decide to sell the house while the tenant is still living there, one of the trickiest parts is scheduling showings. Tenants have lives too, and having strangers come into their home isn’t exactly fun for them.
Here’s How to Make It Easier:
- Give Plenty of Notice: In Texas, landlords are required to give tenants at least 24 hours’ notice before entering the property for showings. But let’s be real—giving more notice is just polite and will keep your tenant happier.
- Be Flexible: Try to work around the tenant’s schedule as much as possible. It’s a small gesture that can go a long way in keeping things peaceful.
- Keep It Clean: Offer to help with cleaning services before showings. Not every tenant will keep the place spotless, and you want the house to look its best to potential buyers.
Selling a House With a Difficult Tenant
Not every tenant is going to be a dream to work with, and that’s where things can get complicated. If your tenant refuses to cooperate, you’ve got a few options.
What Can You Do?
- Negotiate: If the tenant is being difficult about showings or moving out, try offering incentives like covering moving expenses or giving them a break on rent for the last month.
- Legal Action: If the tenant is outright refusing to leave or violating their lease, you might need to consider legal options. Texas is known for being landlord-friendly, but it’s still important to follow the law carefully. Consult with a lawyer before taking any drastic steps.
How Does This Affect Your Sale Price?
Now, you might be wondering: does having a tenant affect how much you can sell your house for? The answer is—it depends.
- Investor Buyers: If your buyer is an investor, they might actually prefer having a tenant, and you could potentially get a better price for a property that’s already generating rental income.
- Traditional Buyers: On the flip side, traditional buyers looking for a home to live in themselves might offer less because they’ll have to wait until the tenant’s lease is up or deal with the hassle of asking them to leave.
Texas Laws You Should Know
When selling a house with a tenant in Texas, it’s important to be aware of both federal and state laws.
- Tenant Rights: Texas law protects tenants’ rights, meaning you can’t just kick them out because you’re selling the house. They have the right to stay until their lease ends.
- Fair Housing Act: Remember that you can’t discriminate against tenants based on race, religion, gender, or any other protected status when selling your property.
The Best Time to Sell a Tenant-Occupied Property
Timing can be everything when selling a house, and it’s no different when your house has a tenant. If your tenant is on a month-to-month lease, the best time to sell might be during the spring or summer when the real estate market is at its busiest.
But if your tenant is on a long-term lease, you may need to be patient and work around their lease’s expiration date.
FAQs:
Do I need to tell my tenant that I’m selling the house?
Yes, you should definitely tell your tenant. It’s not only a matter of courtesy, but in Texas, you’re required to inform them about the sale, especially if it will impact their lease agreement.
Can I sell my house if my tenant won’t leave?
Yes, but it might be harder. You’ll either need to find a buyer who’s willing to keep the tenant or negotiate a way to get the tenant to move out.
How much notice do I need to give my tenant before showings?
In Texas, you’re required to give at least 24 hours’ notice before entering the property. However, giving more notice can keep things smoother.
Can I raise the rent when I sell the house?
Not during a fixed-term lease. You’ll need to wait until the lease expires or the tenant agrees to a new rental price.
Conclusion: You’ve Got This!
Selling a house with a tenant in Texas might seem complicated, but with a little planning, it doesn’t have to be a nightmare. Whether you decide to keep the tenant, ask them to leave, or wait until the lease ends, you’ve got plenty of options to make the process work for you.
We can help cash home buyers in Texas get the best prices regardless of where they are. Interested to sell a house fast? Give us a call!
