Can you sell a house with tenants in Pittsburgh, PA?
Yes, you can sell a house with tenants in Pittsburgh, PA, but there are several important factors to consider to ensure a smooth process. Whether you’re selling a house with tenants in place (as a rental property) or after the tenants have moved out, you’ll need to handle the situation carefully, especially if there are leases involved.
Here’s a breakdown of key things to keep in mind when selling a house with tenants:
1. Review the Lease Agreement
If there are active tenants in the property with a lease agreement, you must abide by the terms of that lease. This includes honoring the lease’s duration, rent payments, and other conditions until the lease expires. You can’t evict tenants just because you’re selling unless they are in violation of the lease.
- Fixed-Term Lease: If the tenants are on a fixed-term lease (e.g., a 12-month lease), you must honor that lease until it expires, or negotiate with the tenants to vacate early (though they aren’t obligated to do so).
- Month-to-Month Lease: If the tenants are on a month-to-month lease, the rules for giving notice to vacate may vary by location, but generally, you’ll need to give them proper notice (typically 30–60 days, depending on local laws).
2. Selling the Property with Tenants in Place
You can sell a house with tenants in Pittsburgh, PA still living there, but there are pros and cons to this approach:
Pros:
- Income from Rent: If you’re selling an income property, you can highlight the rental income to potential buyers, making it appealing to investors.
- Appealing to Investors: Investors who buy rental properties often prefer tenants to stay in place since it guarantees rental income from day one.
Cons:
- Inconvenience for Tenants: Tenants may not be happy with showings or the prospect of a new owner, and this can sometimes lead to friction.
- Limited Buyer Pool: Many buyers, especially owner-occupants, may not want to deal with tenants and would prefer a property that’s vacant. This can make it harder to sell a house with tenants in Pittsburgh, PA quickly.
3. Notify Tenants About the Sale
- Legal Requirements: Depending on local laws, you may be required to inform the tenants of the sale in writing and provide details about how the sale will affect them.
- Showings: Coordinate showings with the tenants. Many states require reasonable notice (e.g., 24-48 hours) before entering the property to show it to potential buyers. Be sure to follow the proper legal protocol to avoid potential disputes.
4. Selling to an Investor or Cash Buyer
Selling to a real estate investor or a company that buys houses for cash (just like We Buy Property, our CEO Mark in the photo) can be a great option when selling with tenants. Investors often buy properties with tenants in place and may not require the tenants to vacate right away.
- Cash Offers: Many investors will make a quick cash offer, which can be appealing if you’re looking for a fast sale. The buyer may assume the tenants, or in some cases, they might offer an incentive to the tenants to vacate early if you want to sell the property vacant.
- Lease Assignments: In some cases, the buyer may choose to keep the lease in place and continue renting the property out to the existing tenants.
5. Evicting Tenants Before Sale
If you want to sell the property vacant, you’ll need to go through the process of evicting the tenants. However, this should be done carefully and in compliance with landlord-tenant laws. Be sure to follow the legal eviction process to avoid issues.
- Legal Eviction: If your tenants are on a lease, you can’t evict them just because you’re selling the house. You’ll need a legal reason (e.g., non-payment of rent, lease violations) to begin eviction proceedings.
- Offering Incentives: In some cases, landlords offer tenants financial incentives, such as paying for moving expenses, to vacate the property early. This can make the process smoother.
6. Providing the Tenant with a Notice of Sale
In some areas, you may be required to provide tenants with a formal notice that the property is being sold, especially if the sale will affect their tenancy (e.g., if the new owner plans to occupy the property or change terms).
7. Consider Rent Control and Tenant Protections
If the property is located in an area with rent control or tenant protection laws, the process can be more complicated. In these situations, you may have to deal with additional rules about rent increases, eviction procedures, and tenant rights during the sale. Be sure to understand the legal landscape in your specific area before selling.
In Summary:
- You can sell a house with tenants in Pittsburgh, PA, but you must respect the terms of the lease.
- You can sell the property with tenants in place, which might appeal to investors, but it can be trickier with owner-occupants.
- If you want to sell vacant, you might need to evict tenants or offer incentives for them to move out.
- Selling to an investor or cash buyer could be an easier and faster option since they are often more flexible with tenants.
If you’re not sure how to navigate this process, it might be helpful to consult with a real estate attorney or a trusted real estate agent familiar with landlord-tenant laws in your area to ensure you’re following the proper procedures.
