Although owning rental property can be a great investment, an investor may decide to sell because of a changing market or becoming tired of being a landlord.
However, once you have allowed others to live in your home, they become an important consideration for the property’s future. That’s right—the tenants who allowed you to pay your mortgage NC rental property may very possibly prevent you from cashing in when the time comes.
Fortunately, there are approaches to handle the tenant-landlord relationship through this difficult period. Continue reading for some helpful hints on how to sell an occupied house with renters living in it!
Selling a Tenant Occupied House in North Carolina – Table of Contents
Can You Sell An Occupied House with Tenants in North Carolina Legally?
Yes! In North Carolina, you can legally sell a rental property even if it is occupied by tenants. In fact, many real estate transactions these days involve rental houses that are sold with tenants still living in them.
The period for selling your rental property to a new buyer is determined by the lease agreement with the renter.
If the lease arrangement is month-to-month and you have a solid renter, selling the rental property can be simple. Meanwhile, if the renter has a fixed-term lease, the sale can be more difficult and time-consuming.
If you’re ready to sell your North Carolina house for cash, fill out the form below to get started! Or contact us to have any of your questions answered!
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Let Us Make You A Cash Offer For Your Home!How to Sell Your House with Tenants in North Carolina Legally
Preparation is essential when selling a rental property with tenants in NC. Before offering the home for sale, be sure that all necessary repairs and renovations have been completed. This will not only make the house more appealing to potential buyers, but it may also help you increase your asking price. Here are some considerations to make when selling a rental property with renters.
When North Carolina Tenants Have a Month-to-Month Lease
If your renters are on a month-to-month lease, you may want to consider offering them a lease buyout or early termination in exchange for a lump sum payment. This can boost the appeal of the house to potential buyers while also making the sale process smoother.
When Tenants Have a Fixed-Term Lease In North Carolina
If your tenants have a fixed-term lease, you must follow the terms of the contract until it expires or is mutually canceled. The buyer may be willing to absorb the lease and become the landlord in some cases.
Wait For The Active Lease To Expire In North Carolina
Another alternative is to hold off on listing the property for sale until the active lease expires. This provides you with more time to prepare the property and make any necessary updates or repairs, as well as potentially attracting a broader pool of possible purchasers.
Negotiate an Early Exit Plan With Your North Carolina Tenant
You should also consider negotiating an early move-out agreement with the tenants if they are willing and able to do so. This might make the sale process easier and attract possible buyers who are looking for a vacant property.
Offer To Sell Your North Carolina Property to the Tenant
You should think about selling the rental property to the current tenants. This can make the sale process easier and ensure that your tenants are satisfied with their living arrangement.
Legally Terminate the Lease in North Carolina
In rare cases, it may be necessary to terminate the lease with cause due to nonpayment or other issues, allowing you to legally remove the tenants from the property and sell it.
Communicate With Your Tenant in North Carolina
It is critical to maintain a positive relationship with the renter throughout the sales process. Open communication and teamwork can help to minimize or eliminate disturbance and ensure seamless transactions. Discuss the sale with your tenant from the start, and be explicit about your expectations for property showings, inspection access, and any necessary repairs or renovations.
Explore North Carolina Cash Home Buyers.
Working with a local, reputable NC cash home buyer is one way to expedite the selling of your rental house. Cash home buyers are real estate investors who specialize in purchasing homes quickly and for cash in any condition. North Carolina Cash home purchasers enjoy various advantages, including a faster sales process, no repairs or upgrades, and the ability to close on your schedule. You can read more about the guide to selling your North Carolina home for cash here.
What Are Tenant’s Rights When A Landlord Sells Property In North Carolina?
Selling a house is a challenging process in itself, but selling an occupied house with tenants adds another layer of difficulty. Tenants have rights that every landlord should be aware of before selling the property for sale. These rights safeguard individuals against the difficulties of relocating or dealing with new management. Some of these rights includes;
The Right To Receive A Timely Notice To Leave
If a residential lease agreement requires the landlord to offer at least 24 hours’ notice, the landlord must comply. Generally, If the agreement does not specify the amount of notice required, the notice to leave is 30 days. Although 24 hours is regarded reasonable, it is not needed. A residential landlord may also evict a tenant for nonpayment of rent, violation of stated lease terms or conditions, or other legal causes. Selling the property does not constitute grounds for eviction. A valid lease with an existing tenant must be honored by the current owner, and if the property is sold, the new owner must continue to honor the agreement.
Tenant’s Right to Terminate The Lease
Good competent landlords in North Carolina should pay attention to issues at the house that may affect the tenants or use of the property. Tenants in North Carolina have rights once they sign your lease agreement. If they believe their rights have been violated while you are selling the home, this could cause problems for you. If you violate the lease agreement, your tenant might be entitled to refunds on rental payments or exiting the lease with no penalty to them.
Right To Occupy The House After The Sale
Your tenant has the right to remain in your property after it has been sold. The tenant is permitted to remain in the rented property until the lease expires. Remember that a renter’s rights during a transaction take precedence over property rights. Before taking any action on the property, the new landlord must wait for the lease to expire or offer ‘cash for keys’ to the tenant to leave.
Right To Receive Security Deposit
Tenants are usually required to pay a security deposit at the time of lease signing; this money is refunded if they vacate the property without damaging it. If the tenant remains in the property under the new ownership, the security deposit would be transferred to the new owners at closing. The renter would receive the security deposit from the new owners after the lease expires.
Right To Occupy The House While It Is Shown
If a tenant’s lease is still active, they have the right to be present during any showing of the property. However, they are not compelled to clean the house prior to a showing. Instead, the landlord might work with the renter to choose the ideal time to inspect the property and how to clean it. To avoid disagreements, the landlord may pay for housekeeping services.
Can A Landlord Show A House To A Potential Buyer While Occupied In North Carolina?
Yes, even when a tenant occupies the property, a landlord is allowed to show it to potential buyers. In North Carolina, landlord-tenant laws do not require landlords to give tenants advance notice before visiting the property. However, the standard practice is to provide a written notice of at least 24 hours in advance, and the tenant has the right to be present if they want because their personal possessions remain on the property. Despite the tenant’s right to use the property, the landlord has the right to show it to potential buyers without interfering with the tenant’s use of the property. If the tenant refuses to provide access or a showing, the landlord may declare a breach of the lease and serve the tenant with an eviction notice.
How much notice does a landlord has to give a tenant in North Carolina before they have to leave?
North Carolina landlord tenant rules specify when landlords must tell renters if they want to terminate or modify a lease, as well as when landlords must notify tenants if they intend to terminate or modify a lease. There must be seven days’ notice for month-to-month leases. For year-to-year leases or those with other fixed periods, landlords must notify renters or vice versa within a month of the lease’s expiration. Notice must be given at least two days in advance for leases lasting between one week and one month. Notice must be given no fewer than 60 days ahead of time for mobile home leases.
We Buy Houses Anywhere In North Carolina!
We buy houses all across North Carolina. We buy properties as-is too! We are cash home buyers in North Carolina and can help you sell your house fast! We buy houses, we buy land, we buy multifamily, we buy mobile homes, and we buy townhomes. If you need to sell your house in Charlotte, Raleigh, Durham, Wilmington, Asheville, Greensboro, Winston-Salem, or anywhere in between, we can help!
How much time does it take to sell a tenant inhabited rental property in NC?
The exact amount of time it requires to sell your home for cash in North Carolina, including the amount of period it stays in the market, is determined by whether you sell on open markets or through “We buy Houses for cash.” The National Association of Realtors reports that the average time a property was on the market in 2020 was 24 days. When you factor in the average closing time of 46 days, the total time it takes to sell a home is around 76 days. This is a big difference from the 14-day window you get when selling your house through “We Buy Houses for Cash.”
Challenges of Selling a House with Tenants in North Carolina
Finding a buyer ready to take on the occupied property is one of the most difficult aspects of selling a rental property with tenants in NC. Many purchasers want to buy an empty property in order to undertake any necessary renovations or updates before moving in or finding new tenants. Another potential problem is managing your renters’ expectations and cooperation throughout the sale process. It is critical to communicate openly and consistently with your tenants, informing them of any updates or changes. It might also be beneficial to give incentives for their cooperation, such as covering moving expenses or providing a reduced rent during showings.
Common Questions: Selling A Tenant Occupied Home In North Carolina
Before getting cash for your house in North Carolina, you may have a few additional questions. If you would like to speak with someone at Cardinal House Buyers, feel free to reach out directly to us! Listed below you will find answers to some common questions!
What Is A Tenant In North Carolina?
In North Carolina, a tenant is someone who leases or rents property, like a house or apartment, from a landlord under the terms of a rental agreement. This agreement grants the tenant the right to use and occupy the property for a set period, while outlining their responsibilities, including rent payment and property maintenance.
What Are Tenants Rights In North Carolina?
In North Carolina, tenants have rights that include living in a habitable environment, receiving reasonable notice before landlord entry, and protection against unjust eviction. They also have the right to have repairs made in a timely manner and to withhold rent under specific conditions if the landlord fails to maintain the property.
What Is The Difference Between “Cash For Houses” And Listing My Home For Sale?
When you accept an all cash offer, this is typically the net amount to you, the North Carolina seller. When you list your home for sale, the number that you list at is not the amount of money you will take home when your North Carolina home sells. When listing on a North Carolina MLS, you must pay your realtor, the buyers realtor, closing costs, taxes, fees, and possibly repairs to the home. You must also wait (on average) over 90 days before selling your home on the MLS with a North Carolina real estate agent. This is what makes a cash sale of your North Carolina property so convenient, as you know exactly how much you will make at the beginning of the process.
How Do I Know A North Carolina Cash Home Buyer Is Legit?
It is important to determine if the North Carolina cash home buyer you’re working with is legitimate. Do they have 5-star reviews on their Google Business Page? Do they have social media profiles? Do your due diligence on who you are working with to ensure they are a reputable, local, North Carolina company.
Do I Need To Repair Or Clean My North Carolina House Before Selling?
Nope! Leave anything you don’t want and we will take care of the rest. If there are family heirlooms, personal belongings or valuables from your North Carolina home please take these. We will donate any items or furniture you request and we will junk the rest!
How Fast Can I Sell My NC Home For Cash?
We can close transactions in as little as 10 days! This allows time to arrange the closing, on your schedule, and complete the paperwork and title search. This ensures that everything about the sale of your North Carolina home is legal and correct. We only work with the best real estate attorneys in North Carolina, who are licensed and understand how to help us sell your house for cash!