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Thursday, April 28, 2016

Selling Investor Properties: Are Tenants "in place" a Good Marketing Tool?

As a real estate agent, my attitude is simple...tenants are never a marketing tool - ever!  Tenants are people who have rights.

With that said I will also acknowledge good long term tenants can be a real plus when your target buyer is an investor.

I understand the selling process with a tenant involved from experience - as a seller as well as a tenant.

As an owner I have sold one tenant occupied property.  And it worked out very well because the tenant bought it.

As a tenant I have been through the inconvenience of the showing experience.  It was a hassle.  There was the issue of a pet on the property. There was the issue of "my time" on the weekend beings interrupted.  It was a hassle...oops, said that twice.

Yes, I accommodated most reasonable showing requests.

Not unlike my response there are many tenants who will cooperate with the seller within pre-established parameters.  

This is key for sellers.... communicate with your tenants.  I have heard some real estate agents suggest making the tenants part of the "team."   The challenge in this case would be to figure out a way to build support.  People are by nature always wanting to know "what is in it for me?"

At a very minimum I suggest explain to tenants that their lease is not the issue.   In Florida all sales are subject to the terms of the the lease

One other key communication point... advise tenants of your intention to sell before the sign goes up out front!

Selling tenant occupied properties can be a challenge as some  tenants will use the opportunity to make disparaging remarks about the property or even less than ideal marketing reviews about the neighborhood or neighbors.

Sometimes it may very well be to the seller's advantage to incentivize the tenant to go ahead and move before the selling process begins.  While the owner may lose a little rent it may be advantageous to get the property in "show room condition" before buyers walk though the front door.  The lost rental income could very well result in a higher selling price.

There are many very cooperative tenants.  As an owner/seller, treating your tenants with respect will go a a long way to selling your property while it is occupied.

So, are tenants "in place" a good marketing tool?  It depends....

If you are considering buying or selling rental property in Melbourne, Viera or Cocoa Beach, Florida, call or text me at 321-693-3850 if I can help in any way.

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