We would like to share our thoughts and tips on the topic….
If you’re really serious about selling your home, we suggest that you stay focused on selling your home, and never compromise the selling process by placing tenants in your home while it is on the market for sale. Selling and renting rarely go together - unless your home is more marketable as a vacation home and the rental history would be appealing to a vacation home buyer such as a waterfront condominium.* If you choose to lease your home - you’ll want to keep good rental records and offer those to your Realtor to have on file during the selling process.
In addition, you’ll need to make your tenants aware that your home is currently listed for sale, and there will be Realtors dropping in and out without a lot of notice. Explain to them that it’s important to keep the home tidy at all times, and advise them not to leave any valuables lying around while the Realtors and their clients tour the home. Now, after you’ve reviewed all of this with your tenant – how do you think they will respond? Most likely, not very favorable!
Tenants could care less if your property sells, as they will be inconvenienced with an unscheduled move. Some tenants may try to sabotage a sale by leaving the place a wreck for showings, which will most likely result in a poor showing experience by the Realtor – which may then cause your home to be scratched from that Realtor’s list for any future showings. The tenant may also refuse to allow showings or make it very difficult for Realtors to show your home – again resulting in the Realtor possibly scratching your home from their list for future showings.
How do you feel about pets or smoking in your home? Well, often times a tenant will have a pet or a smoking habit and they could care less about the residue left in your home. After all, it’s not their home & they aren’t responsible for repairs.
Convinced yet? If not, then here’s another experience that we would like to share. We have a client that decided to purchase a home (purchased for $145,000) here in Hot Springs for rental use while the client lives many miles away in California. The client then found a “nice” renter that appeared to be neat, clean, responsible and all the things you look for in a tenant. The tenant then leased the home for a two year period. The tenant was very good with making the rent payments in a timely manner and never complained about any maintenance problems. When the tenant decided to move out, the client then called us to check on the home, as she planned to sell it. You can’t imagine what we found when we walked in. The home was an absolute wreck! The tenant had failed to take care of any maintenance issues and allowed an ongoing water leak to continue in the bathroom for months. The bathroom floor was totally rotten, with a large hole in the floor – where you could actually see the dirt ground below. All of the walls were scarred & filthy; the ceilings were brown from cigarette smoke; the carpets had stains everywhere, and everything was filthy! We then began to get estimates for the out-of-town client for all the repairs. The estimates totaled around $15,000.
Now, with all that said – we are NOT advising against purchasing property for rental use, as we also own multiple rental properties that we plan to keep, and we believe that rental properties are a great investment (as long as you watch over them closely).
Our advise is that you think seriously about your desires for either selling your home - or renting your home, but please do not mix the two (*unless you fit the exception mentioned earlier).
The Kennedy Team, REALTORS
Trademark Real Estate, Inc.