Do I keep my tenant in my rental property while I go through with a short sale?
We have had numerous investors approach us with this question and knew it was time to make seattleshortsaleblog’s latest post addressing this issue. The questions we get are, if I list my property for sale as a short sale, should I keep my tenant or ask them to leave? Due to the fact that a short sale takes so long, should I keep the property vacant?
keep your tenant!
That cash flow is important. Here are some tips to help you in dealing with your tenant or in getting a tenant for a short sale.
1. For each showing where the property is tidy, and the property is available on time for the showing, reward your tenant with $10-$25 per showing off of rent. Cap the amount at a couple of hundred dollars per month.
2. Explain to the tenant of the property what is to be expected with a short sale. As long as the expectations are set at the beginning of the short sale, most tenants will absolutely be respectful and grateful to know what is to come. Make sure and explain that a short sale takes approximately 4-6 months, and sometimes longer. If there is a potential auction date on the property, keep them informed and tell them that you or your real estate broker will keep them posted on what is transpiring.
3. If you are going to short sale the property but want some cash flow. Advertise your property below market and on a month to month basis. Plenty of people are looking for short term housing.
If you do put your investment property on the market, make sure to find a real estate professional who communicates well with the tenant as this is vital to keeping the property in good condition so there are no issues with having access to the property.