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Thursday, 08 July 2021 22:32

Is It Possible to Sell a House While Tenants Live There?

Saying it is a seller's market might be the biggest understatement of the year. 

Few industries were left unscathed by the effects of the global pandemic. In western North Carolina, some small businesses and larger corporations had to close their doors for the final time. 

However, as things began to reopen and return to normal, companies that survived in the Asheville area have seen as many customers as ever. That is at least in part due to an influx of people moving to our area

We have been growing steadily for decades, but it seems like our area has become even more popular during and since the pandemic. With the growth of remote work options, people wanting to escape claustrophobic larger cities have opted to relocate to beautiful places like western North Carolina. 

If you are fortunate to own property in the Asheville area, you may be looking at the housing market and thinking about selling. This might be the time to cash in on your investment and look for new opportunities. 


However, if you may have questions about what you can and should do if you have current rental tenants. Here is what you need to know about whether or not it is possible to sell a house while you still have tenants. 

Can You Sell Property with a Current Tenant?

The short answer is, yes, you are legally allowed to sell a property even while your tenant still lives in the home. In fact, your tenants may not even have to vacate the property. 

Before you begin the process, however, you need to investigate your options and the pros and cons of selling an occupied property.  

What You Need to Know About Selling While Your Tenant Is Still Renting

While you can indeed list your property while you still have tenants, there are some important procedures you should follow. 

  1. Notice: Your tenants should be aware of your intentions to sell. 
  2. Regulations: You need to be aware of all local, municipal, and state regulations before you list the property. 
  3. The Lease: If your tenants are locked into a lease, the terms must be upheld. They cannot be forced to move, even if a new owner purchases the property. If your tenants are month-to-month, then in North Carolina, seven days' notice is required for move-out. However, most states require at least 30-days of notice, which is a good benchmark for how you might proceed. 
  4. Investment: Investors might be attracted to a home with existing tenants. 
  5. Communication: You will need to have open and honest communication with your tenants. Additionally, it will be best for your reputation to make sure you work with them to schedule showings at convenient times. You do not want your tenants present for showings. 

The Pros and Cons of Selling With a Current Tenant 

Here are a few of the pros and cons of selling with a current tenant:

Pros of Selling a House with Existing Tenants

  1. Investors: Some investors may be especially interested in purchasing property with existing tenants. 
  2. Staging: With people already living in the home, real estate showings can have built-in staging ability. Buyers can see a furnished home without you having to add those elements. 
  3. Make-Ready: You will not have to spend money to make the home ready for buyers. 
  4. Landscaping: If your property is occupied, you are more likely to keep up with the landscaping. 

Cons of Selling a House with Existing Tenants

  1. Non-investors: People searching for a home to occupy may not be attracted to a home with existing tenants. 
  2. Scheduling: You will have to work with tenants to schedule showings. That can create conflicts and reduce the availability of the property. 
  3. Improvements: You may not be able to make the improvements you want to make to the home. 

Why Are You Considering Selling Your Investment Property?

There is certainly value in striking while the iron is hot when it comes to real estate. You bought your investment property as just that, an investment, so it makes sense to sell when many houses are on the market for mere days and selling above asking prices.

However, there is also wisdom in patience. The market ebbs and flows, so you don't want to make a rash decision that you may regret later.

  • Are you frustrated with ongoing maintenance concerns?
  • Do you find tenant management too time-consuming? 
  • Is the thought of finding new tenants daunting?
  • Do you need more hours in the day to manage social media listings for new tenants, rent collection for existing tenants, in addition to your career and family time?
  • Are you thinking about selling because you are exhausted from all the headaches associated with rental property?

If a growing dislike for property management is part of your motivation to sell, you need to explore expert property management services. 

Asheville Phoenix Properties can help you navigate every aspect of managing your rental property, so you can reap the benefits of investing in western North Carolina real estate. 

Contact us for more information about how you can take the headache out of managing your rental properties in western North Carolina.