Landlords: How to sell a house with bad tenants

Real Estate | 28 Sep, 2020 |

Do you want to know how to sell a house with bad tenants? If you answered yes, then this information is for you. First of all, you must know the truth about your property before you sell it. Most real estate agents who deal with bad tenants will try to force them to move out, and when they do, you will be left with an empty apartment and with no tenants. This is not the best way to sell a house.

Rights Of The Landlord

As the landlord of a property, when dealing with bad tenants, it’s important to keep in mind both your rights and theirs.

• As the landlord, you are legally allowed to collect rent and other payments related to the property, pets, parking, other amenities, and even damages if it comes down to it. This is not to say that every bad tenant will damage the property, but it’s still probable, and something you should be prepared for in the long run.

• Also, with an appropriate notice given, you are legally allowed to enter the property. This can be for emergency or non-emergent reasons. You just have to make sure you have given them plenty of notice.

• You are also legally allowed to evict these bad tenants if you see it is required. The process of evicting a tenant is not difficult, though it is lengthy. Hence, it’s important to ensure you are communicating effectively. The easiest way is to use an eviction notice template to ensure that you convey all the necessary information to your tenant about the pending legal action.

Rights Of The Tenant

Whenever dealing with a bad tenant, keep in mind the rights of the tenant, as you don’t want any legal action against you because you did something to infringe on their rights. There are actually two choices to consider when selling a property with a tenant: you could wait until the lease on the property expires, or you could sell the property as soon as the tenant is gone. Each option has its own fair share of pros and cons. When the tenant has vacated the property, you can choose to sell the rental property as-is to a homebuying company like Nexus Homebuyers so you won’t have to go through the trouble of listing it or making renovations in case there may have been damages left by the previous tenant.

When dealing with a bad tenant in the property, you need to make sure that you follow proper procedures. This includes communicating effectively with the tenant and keeping documentation of your communication if anything comes up where you need to provide any evidence.

Paying The Tenant To Vacate

This may might sound like an under-the-table type of solution. Still, as long as you have communicated effectively with the tenant and you ensure you have proper documentation of such, you are legally allowed to pay a tenant to vacate the property. As long as they do so peacefully and quickly, this is a more roundabout way of getting the tenant to exit without going through a lengthy eviction process, which could actually cost you more money in the long run.

What To Do If The Tenant Does Not Cooperate

Let’s say you’ve listed the property, and you’ve scheduled showings to find a future tenant, but the current tenant isn’t cooperating. You’re more than allowed to schedule a meeting with both the tenant and your property manager to discuss possible solutions that address the concerns of every party involved, thus ensuring everyone is happy with the result.

If the tenant continues with being uncooperative, then it might be the next logical step to contact legal counsel on the matter. With their expertise on a number of different issues, they will no doubt be able to give you advice on how to move forward effectively and in a way that doesn’t backfire on you.

The Option Of A Short Sale

Selling a house with bad tenants is one of the most difficult things to do in real estate. It’s almost impossible because it makes you lose so much money that you can never get back. If you find yourself in such a situation, you may want to consider selling your house with bad tenants on a short sale. A short sale is where a bank or other lending institution will agree to accept less than the full amount of your mortgage on the property, leaving you with at least some money left over. This can be helpful if your house with bad tenants is in an area that’s considered high risk and not in a good location for real estate to flourish. This method should work for anyone, regardless of how much money they can get to sell a house.

Moreover, you must consider these two things before selling a house with bad tenants:

• First, you have to understand that the bank and other lending institutions are not going to be happy to give you a short sale. They’re not going to see a house with bad tenants as an investment opportunity. The bank is always going to view the bad tenant as a liability, and they will never consider this as a good deal for their bottom line. The thing to remember is that a house with bad tenants means a lot of extra money for the bank and a better credit score for you.

• Second, think about the reputation of the home before selling it. It’s important to make sure that the house is in good condition before you consider getting rid of it. You should also check with the Internal Revenue Service to see what the tax status is for the house with bad tenants. This will make it easier for you to be approved for a short sale. After checking the tax status and making sure that the house is not a major problem, you can then start preparing for the potential problems that are likely to occur.


In the end, when you have a bad tenant, there are a number of steps to take that require you to be upfront and communicate effectively with this individual. The more communication and care you take with this matter, the better you will come out of it in the end while selling your property.

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