A tenanted property can be difficult to sell. While it’s important to strictly follow the rules of the Residential Tenancy Act, nobody will deny that an uncooperative tenant can make for a very tricky sale. Here are three factors every seller should consider when deciding whether or not to list their investment property.
Know Before Selling
- Tenancy. Is your renter there on a month-to-month term or a lease? This will determine the type of buyer you’ll be attracting. A buyer seeking a primary residence may or may not be looking for a tenant, making a month-to-month tenancy more attractive. A lease limits potential buyers mostly to investors, who are more likely to show interest in a property that already has a reliable long term tenant.
- Access. Will your tenant be amenable to having a lockbox put on their door? Some tenants may wish to be home for all showings, which can really change the dynamic. In our experience, some buyers won’t bother taking a look at a property if they know the tenants will be there for a showing. A lockbox makes showings straightforward to book because coordinating with the tenant’s schedule is much less of an issue.
- Cleanliness. When a landlord and a tenant have mutual respect for one another, this is a non-issue. However, if an dispute develops with a tenant and s/he decides that the home is no longer worthy of upkeep, the results can be disastrous for selling. Nobody wants to look at a messy or damaged home, much less inherit the tenant who made that mess in the first place.
A Relationship With Your Tenant
Ultimately, the quality of your relationship with your tenant will determine how easy it is for you to sell. Even if you’re not thinking about selling in the near future, make sure that you use a rigorous selection process when choosing a tenant with whom you can develop a mutually respectful relationship. When the time comes to sell, you’ll be able to work together for a great result!