Do you need to sell your house with tenants in Hawaii? The process isn’t always that easy depending on your lease and specific tenants in place. Learn more about how to do it in our latest post.
When selling your house with tenants in Hawaii, you’ll want to make the transition as easy as possible for everyone involved. Let them know of your intentions and what they should expect regarding timelines. If they wish to stay in the home, look for a buyer who will be ok with purchasing a property with tenants already in place, i.e. someone who will honor the remaining lease term and make the transition as smooth as possible to the tenants. That said, at the end of the day you will have to do what is best for your family if the situation becomes difficult. If you’re losing money every month (most properties in Hawaii don’t ‘cash flow’ or net positive), then you may not be able to go over the top; you might need to cut your losses even if it means the tenants would have to find a new home.
Before you make the decision to sell your house with tenants in Hawaii, make sure you are familiar with the tenants’ rights. If you’re asking them to vacate the property early so you can sell, make sure you’re giving them the required amount of notice and are operating according to Hawaii state law. You will need to have a termination clause in your lease allowing you to end the lease early, or you’ll have to negotiate with them for an early release. Selling your house with tenants in Hawaii can seem difficult because you might be asking people to uproot their lives at a time when it’s either inconvenient or too expensive for them to relocate. But if you adhere to the legalities and work with the right buyers, the process can be done quickly and without much disturbance to anyone’s lives.
Selling your house directly to a company that buys houses in Hawaii will eliminate the need to clean, de-clutter, market, stage, and show the home to prospective buyers. All of these can be difficult when there are tenants living in the house, especially when the law requires giving them 48 hours’ notice. In order to successfully sell your house directly, you need to find the right buyers who are willing to take on a house with tenants and the remaining lease term. However, some investors, the buy-and-hold types, might even appreciate having the property already rented. It’s one less thing they have to do and having an instant income, without any costs for renovating, cleaning, can prove to be very valuable to them – if it’s currently rented properly.
If you plan on listing the house with a Hawaii real estate agent, you will either need to wait until the tenants have vacated or have their cooperation in showing the home to prospective buyers. You don’t want to have a tenant ruin a showing whether intentionally or unintentionally, so you’ll need to cultivate a great relationship with them. You might consider offering reduced rent in exchange for their time, property maintenance, cleaning, etc. You could also negotiate an early move-out completely, or maybe offer to pay their moving expenses and/or first month’s rent at their new place. Selling your house with tenants can be very inconvenient for them. Offering financial or other such incentives can help make the transaction an easier one for them.
Remember, it might be your house, but it is currently your tenants’ home and they deserve that consideration. They may feel a sense of attachment or worry about being uprooted after living in the home for a long time – especially if they are close to their jobs or kids’ school. While you may need to sell the house for your own personal reasons, try to be as respectful and accommodating to your tenants as possible. This will make things easier for them and for you as the home seller, especially if you’ll continue to need their help throughout the process, i.e. opening the property up for showings.
Sell To Your Tenants
No one knows your property as well as you do — but your tenants are likely a close second. If your tenant has been there for a while, they feel very attached to the home and perhaps the neighbors and overall nearby community. Perhaps they’d be interested in buying it outright? Talk to them and see if they’re interested — they might be the perfect buyer!
If you have the ability to hold off on selling (not everyone does), consider waiting until the lease is up. Then at the time or a couple months in advance, let your tenants know that they will need to relocate as you will be putting the house on the market. Helping with moving, either physically or financially, or being a good landlord reference for them going forward can help soften the blow, especially with a quality long-term tenant. If the sale isn’t needed immediately and you want to spend the time and money on a listing, waiting until the house is vacant could be in your best interest.
Selling your house with tenants in Hawaii can be challenging depending on your situation and the nature of your specific tenants and their lease. However, when you plan ahead, act properly and considerately, and adhere to Hawaii landlord-tenant laws, it can be done. We would love to help you learn more about the options available to you!