Can you sell a house with tenants in Miami? The answer is yes!
The law allows you to sell a house even when you have people living in the property. However, tenants are not required to leave the property until the lease expires. Before that, you can market the house, and even try to sell it but you cannot get a vacant house unless you discuss the situation with your tenants.
In this article, you’ll read:
- What to look for in the lease agreement?
- Tenant/landlord laws that apply to your situation
- How to communicate with tenants regarding the sale of your house?
- Options to sell a tenant occupied the rental property
- And, more.
Is there a lease agreement and when does it expire?
In Miami, a lease doesn’t have to be in the written form. You can have an oral agreement, and it will be acceptable.
There are two types of agreements, i.e. the fixed-term lease and month-to-month lease. The frequency of the payment determines the nature of your contract. In most cases, if you want to sell the property, it is best to wait for the lease to expire. You don’t have to terminate month-to-month contracts. Wait for the lease to expire and then sell the house.
In most cases, it is best to wait for the deal to end, renovate the house, and then consider selling the home. It is understandable that this option is not always applicable. There are situations when you cannot wait for the lease to expire, especially in the case of a fixed-term deal. You might want to move into the property or sell it fast.
Understand Tenant-Landlord laws/Rules that apply to houses in Miami
Fixed-term contracts are hard to break. You can cancel the deal because of a cause such as if:
- There is unpaid rent
- Unknown occupants in the house
- Pets (without permission)
- Law violation
For the mentioned causes, you can cancel the contract and ask the tenant to leave the house.
Can you terminate a fixed-term lease even when your tenant did nothing wrong?
If you had planned earlier to sell the house, you could have added an early termination clause in the lease. It states that the contract will expire upon the sale of the property. Usually, a 30-days’ notice is given. Unless that clause exists, you cannot end the tenancy. Your tenant has a right to live in the house. You can try negotiating the terms with the tenants, but they are not required to accept your offer.
The Florida tenant-landlord law requires that you give at least a 12-hour notice before entering the property. Until the expiry date, the property is the tenant’s home, and you cannot enter the house without proper notice or without getting permission from the resident. You can find the landlord-tenant laws here.
Communicate with tenants before selling a tenant occupied home
Here comes the tricky part. It would help if you had the cooperation of your tenants to sell the house. Now you know the people living inside your property. If you have a great relationship, you can expect the process to go smoothly. You can compensate the tenant for the inconvenience. However, talking to the tenant can also sound like a nightmare if you know the tenants will not cooperate. You need a strategy to communicate your situation.
When should you discuss the matter?
You have two options when it comes to selling a tenant occupied property. You can sell the home as-is. I mean sell the property even when tenants are living in the house. In that case, the new owner will be the new landlord. We will discuss that option later in this article.
The second option is to request the tenant to vacate the house. Under these circumstances, you need to meet the tenant and discuss the situation. Grab a cup of coffee. Tell them in advance that you want to be helpful, but you must sell the house.
Notify Tenant of Sale of Property Letter
It is a formal written notice to inform tenant about the potential sale. Many people don’t like surprises so it is best if you can discuss the situation earlier. However, you do need to send this letter. Write a brief note, addressing the local laws, and answering any questions the tenant might have.
What Should be the Outcome of this Conversation?
What are you expecting from the tenant? The positive outcome is that the tenant understands your situation and cooperates with you. In return, it is understandable that moving is always a challenge. Help your tenants move out of the property or let them meet the new landlord. If you are terminating the lease, make sure to return the deposit and pay the monthly rent to cover up for the inconvenience. You can also offer moving assistance or if you have other investment properties, ask your tenant to join another home of yours.
How Do You Handle Tenants Who Won’t Cooperate?
In theory, you can help your tenants, and they can help you achieve a smooth sale, but reality can be different. It can be next to impossible to sell a house if the tenant refuses to cooperate with you. It is a landlord’s nightmare to deal with such circumstances because you are also dealing with a home in a rough condition. Here are some tips for handling this situation:
Avoid the eviction process: It is the last option and works but there is no guarantee that your home will be in good condition. Bad tenants can destroy a property before they move out, (it happened to us). Carpet will be stolen, walls destroyed, wiring stolen, and appliances won’t be functional. You cannot possibly sell such a house in an as-is condition. Unless it is your last choice, avoid the eviction process.
Reach an agreement: Try to solve the underlying issue. What does the tenant want? Do they need moving assistance? Do they need help in finding a new house? Can you help them financially? Tenants do not gain anything when you sell the house, so they don’t have any motivation to help you. It is you, who need their help.
Avoid Unnecessary Showings: Limit the number of showings. The maximum you should ask for is one time per week. Ask your visitors to see the house on a particular day. Also, it pays to have a video of the house. Get a 3D virtual tour. That way, you can get the house in an uncluttered state, record the features and show it to potential customers without having to visit the property again and again.
Know Your Tenant/Landlord Laws: Clarify the terms in the contract and make it understandable that legal action will be taken if the tenant doesn’t abide by the law. You can give proper notice and then visit the house. The tenant is responsible for keeping the property in good condition. If he fails to do so, choosing the eviction process might be the right step.
Can You Evict a Tenant in Miami to Sell a House?
You cannot evict a tenant to sell a house in Miami. The lease will govern any interaction between you and the residents. The law says that you cannot remove a tenant without a cause. Your options are limited in this case. The tenants must agree to cooperate with you or else you cannot sell the property.
An Easier Option for Selling a Tenant Occupied Rental Property
If you are looking for a convenient option to sell your property, here it is.
You can sell your home (and the lease) to a local cash buyer in your area. A legitimate cash buyer will honor your contract with the tenants. They will assume the contract as well as the ownership of the property. Purchasing a rental property can be an advantage for the right investor. Similarly, selling a home without ending the contract gives you peace of mind. You don’t have to tackle complicated house showings. You don’t have to evict the tenants. In the end, the eviction process only costs you money both in terms of repairs, and eviction fees.
Selling with tenants is also a more comfortable option for the residents as they can continue to live in the house until their lease expires. If you want to sell a tenant occupied the property, feel free to contact us.
We are a local real estate investment firm and can buy your house quickly in as little as ten days. Being a landlord can be a tough job, and you can handle the selling process on your own, but working with us will make it much easier. We understand the local guidelines and can help you even if you are not planning to sell to us.
Can you sell a house with tenants in Miami? How does the eviction law work in Miami? Do you have to wait for the lease to expire or can you sell your house with tenants?
Now, you know the answer to these questions. In Miami, your agreement with the tenant determines how can you terminate the lease and what will be the process after that. We have discussed the local laws, and tips to help you on the path. If you have any questions, please give us a call or drop a message below.
If you need any help regarding the process, contact us, and we will address your concerns regarding tenancy laws or buying process.