Find Your Home!

Sunday, June 24, 2012

Brevard County, Florida Short Sales - Should I rent out my home while doing a short sale?

If you are a home owner considering a short sale at some point in the near future, should you rent your home in the interim?

What is a short sale?

Depending on circumstances (moved already) a home owner may look at the opportunity to receive rental income to help offset the carrying cost as a good thing.  After all, the owner still owns the home and has the freedom to do whatever they desire.

Disclaimer… I am not an attorney or tax adviser.  Seek appropriate advice from qualified professionals. 

How will a lease impact the sale of your Florida home?   In Florida anytime a home is sold regardless of sale type a new owner must comply with the terms of a valid lease.  This does not preclude some arrangement to terminate early if the tenant is willing.

Selling a tenant occupied property has potential hurdles to overcome.  When selling a tenant occupied property (short sale or standard sale), it is critical the owners have an excellent relationship with the tenant to make things go a lot better.

Tenants can block or at least make showings difficult while they are occupying a home.   Tenants may say things (true or not) to influence a buyer prospect.

Open communication with a current or prospective tenant is critical.   And what if the seller quits making their mortgage payment?  Will the tenant decide to stop making rent payments? Just a thought although it should not be relevant.

A short sale is not an easy process.  Having a tenant in place may be an additional obstacle.  Still, it is your house.

If you are considering selling your Viera, Rockledge or Merritt Island home as a short sale, send me an email or give me a call to discuss how I may assist you in the process.

Follow by Email