It's happened more times than I can count.
I have a client that has an interest in looking at a property for sale. The listing indicates 'tenant occupied, showings only on weekends, no showings Monday through Friday.' So, I called to set up an appointment for Saturday. 'No, I'm sorry, you can't see it on Saturday, and Sunday is a holiday.' "How about Tuesday after the holiday weekend?," I asked. 'No, there are no showings during the week.'
Well, it sounds like the owner/seller hasn't discussed a workable situation with the tenant, so that buyers can get in and look at the property. But, sometimes a lack of communication is the reason that a landlord is selling their rental property.
So often, tenant occupied properties are the hardest to get in to look at. Many of them indicate that a 24 hour notice is required in order to show it. Many tenants are happy where they are; they don't want to leave. I can certainly understand that. Some tenants make it incredibly difficult to look at a house. Some investors that are buying are interested in buying the house with the tenant in place.
I had one recently listed for sale. I spoke with the owner and the tenant when I took the listing. "Will there be any problems with showing the house? I would like to put a lockbox on the front door. The houses that sell the quickest are the houses that are easy for buyers to get in to look at. Are there any times that won't work for you?" The tenant indicated that she would cooperate in anyway she could to accomodate showings.
I called her with an appointment. "Will 6:00 to 7:00 be alright for an agent to show a buyer the house?" She told me it was fine. That evening I received a voicemail at 6:11 from the tenant indicating that the agent had not shown up yet and she was calling off the showing. I contacted the owner right away, explained the situation and asked that he contact his tenant. He did and the situation was quickly resolved.
I've seen tenant occupied properties sit on the market indefinitely, as buyer's agents are unable to get in. I've seen tenants determined that they are not leaving, and they have no interest in helping sell "their" home.
It can be a precarious situation for all parties involved, but open communication between an owner, the tenant and the real estate agent are crucial in order to get a tenant occupied property sold.
Sandy Shores Realtor, Melbourne FL Real Estate
Brevard County Real Estate and Investing
I specialize in Residential, Investment and Relocations.
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Hi Sandy~ Some listings that have tenants in them do cost the sellers a sale. If you can't get in within a few hours, chances of selling are slim!
Vickie, I agree, sometimes the tenant occupied homes do cost the sellers a sale. Buyers don't want to wait to get in to see a house.
In my area it can be a real problem, as the tenants have nowhere to move to (a resort based community, here, with no rental/apartments), if someone buys a house and needs it for themselves.
Hi Sandy, Yep. I've had trouble showing properties too. When I list a tenant occupied property I work super hard to make sure showings work. Sometimes it's an education process. It is in their best interest to get it sold quickly and have less of an interruption. Their lease stays as is with a new owner but they may get an incentive to move. Hope all is well in Florida!
Hi Sandy, I just had a situation like this, tenant would not respond to listing agent's calls regarding my showing request which was well in advance. My buyers bravely put in an offer without seeing the inside of the property first and that finally forced the tenant to cooperate.
Sandy - Tenants limiting showing also reduce sales prices, sometimes by a huge amount. Why? Smaller market.
Hi Sandy, this is so true. Great post. When you do get into the home tenants will usually say something that can kill the deal. We have also put in offers subject to interior inspection.
I agree. Great post.
Sometimes it's helpful to offer the tenants an incentive for the home to sell.
I think the tenant sometimes think they are going to be put out or have their rent increased. We always try to keep things as they are when buying a rental unless something obviously must be changed.
Hi Sandy,
You are so right that a tenant can make or break a sale. I was showing several properties this Spring with some difficult tenants. The listing agent was great and she did the best she could with a couple of foreclosure tenants. One tenant was squatting for over six months and had a household full of pit bulls and he wasn't happy about moving if the house sold(there goes his free stay). We never got into the house but I ended up getting the sale when the first deal fell through and the squatter finally moved out.
The second home had unique showing instructions: "Don't worry about the lady facedown on the couch when she doesn't move-she's NOT dead!" We never got into that house but bought the one right next door with friendly tenants but wall to wall debris!!!!
I really enjoyed working with that listing agent as she communicated very well and did a great job in spite of a very difficult circumstances with properties in foreclosure that had tenants still in the houses.
Excellent post, Sandy!!!
Ugh, don't even get me started on this one. Working with this issue as we speak.
Tenants really don't want the home to sell because they will either be asked to leave or the rents will go up. So more often than not, it just won't show that well. We've had some luck with offering a bonus to tenants that cooperate.
Hi Oompa! The many trials and tribulations of real estate that exist on a daily basis.
Tenant occupied properties have always been a pain challenge. I avoid them whenever possible.
This is so true it is scary. I interview each tenant that agrees to having the house shown while they live there. Some don't have a problem until the second buyer shows up and the realization that they will have to move or rent from a new owner sets in.
I hope you're having as good a day as I am Sandy!
Paul
Hi Sandy, I can certainly understand where this could be a huge problem. The tenants have nothing to gain and only a home to lose.
Sandy ~ I have had it both ways. Trouble getting in even with an appointment and I have tenants that will let agents in anytime and keep the home spotless. In this market people had to rent out and its hard to find good tenants to begin with let alone one that will cooperate too with showings.
Sandy, the tenants I always like best are the ones who eventually buy the listing. I was amazed you could edit this topic into just a few paragraphs like you've done. Spectacular once again!
That is unfortunately to hear the communication between the three can sometimes create a "stuck" deal. Great advice, also by the tenant not cooperating is just hurting themselves :/
Li, Oh boy, I never thought of that! With you living in a resort area, I suppose that cold be a very difficult situation.
Kate, Sounds like you do the best you can to make the situation workable for that tenant. Great job.
Silvia, We've been in the same situation - write the offer contingent upon seeing the inside of the property. Sometimes that's the best option available. Smart thinking.
Wendy, I agree, often the tenants do the cause the price of the property to drop - sometimes because of no access and sometimes because of condition. If you can't get in to see the property, many buyers will just move on - they can't be bothered.
You're absolutely right about tenants having the power to make or break a deal. In my experience more often than not, they have been difficult to work with. But on rare occassion they have been wonderfully cooperative. I think it's best to simply vacate a property you wish to market, if the tenant seems uncooperative.
Kymberly, I have been in a situation where I took buyers to show a tenant occupied property and the tenant's father was incredibly disgruntled. He bashed the listing agent and the owner incessantly. It was awful. I excused myself and the buyer, as he followed us around the house. And I graciously asked if the buyer could have a moment just to look at the house.
Freedom Mtg. Thanks, it's an issue that should be addressed.
Sandy, So true. Incentives can help entice a tenant to move.
John, I agree, Tenant know there is a good chance they will be put out or their rent increased if the house sells. So often they are right.
Bruce, So glad to hear when a plan falls together. It's great when you have a super listing agent to work with. Tenants can make a situation very precarious, if they choose.
Tamara, I hope that you are able to get through it. It can be so frustrating to say the least.
Gabe, I understand. And so often the tenants are displaced when the house sells or their rent is increased if the new owner decides to let them stay. Great idea to offer a bonus to help them cooperate.
Hi TOTO, This is definitely one of those trials and tribulations that we are faced with in our business.
Gary, These properties can be an incredible challenge. Many times we never even get in to look at them.
Paul, Good job in intervieiwing the tenant before taking the listing. It is so important to have open communications with that tenant at all times, if possible.
Mary, You are so right. They really gain nothing out of a home sale, do they?
June, I've also been in both situations. I have tenants that have been wonderful to deal with, while others have been nearly impossible.
Kevin, You've got a great point - this is a topic that could go on forever, but space is limited, so... A tenant that buys the house is a great one indeed. They already know the house, the neighbors and the area. It can be a win for the owner and a win for the tenant.
Laura, Sometimes we do wind up in stuck situations - so true.
Myrl, I agree, that often it's better for the tenant to be out of the property prior to the house going on the market.