A blog reader recently asked: "What is your take on having a condo unit as a rental while selling? Advantages/Disadvantages in the current market?"
I'm not a fan of marketing properties with tenants occupying them as a general rule. Tenant occupied properties will generally take longer to sell, and will often sell for less than a property that is homeowner occupied. Here’s why:
- You often need 24 hours written notice in writing to show a property. This is often difficult to accommodate, especially since many appointments are set up less than 24 hours in advance…
- Sometimes tenants will disallow showings even if proper notice is given, or they won’t be accommodating with the times you can show so that it won’t work for the buyer.
- Properties that are easier to access will get more showings.
- If the tenants like the property they may purposely leave things messy (or worse). Some tenants simply are not good housekeepers.
- Some buyers will instruct their agents that they are looking for certain possession dates and many times that will exclude properties that have leases on them or a longer possession date then the buyers are looking for.
All in all if you are serious about selling a residential property than in my experience you end up with more money and a faster sale if the property is not tenant occupied.
