How to Sell a Rental Property with Tenants in Maryland

Sign to sell occupied rental property maryland

Disclaimer: This blog post provides general information on Maryland real estate and is not personalized advice. Maryland Estates, LLC, doing business as Creo Home Buyers, and its authors are not liable for the accuracy or use of this information; consult with a trusted real estate professional or attorney for personalized guidance regarding your unique situation.

Learning how to sell a Maryland property with tenants can be a daunting task for many landlords. 

This is primarily due to additional legal hassles and paperwork involved when compared to selling an unoccupied house.

Whether you are tired of being a landlord or you’ve inherited difficult tenants, read on to find out how to sell your occupied rental in Maryland and get fast cash for your rental home!

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Curious to find out how much you could get for your house in Maryland? All of our offers come with no obligation or pressure to accept and we buy houses in any condition.

Sell your house fast AS-IS in without paying agent fees, making repairs, or even cleaning. Close on your schedule.

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Can You Legally Sell an Occupied Rental Property?

The short answer is yes, you can legally sell a rental property with tenants in Maryland. However, it is important to understand what happens to the tenants when you decide to sell.

The lease agreement plays a crucial role in determining the rights and obligations of both the landlord and the renters during the sale process. Be sure to comply with state-wide and local rental housing laws to avoid time-consuming and costly lawsuits when selling.

What Happens to Tenants When Selling Rental Property?

When selling a rental property, the tenants’ rights must be taken into consideration. The new owner of the property will have to honor the lease or rental agreement that is already in place.

If the lease is month-to-month, the new owner may choose to terminate the lease with proper notice. However, if the lease is a fixed-term lease, the new owner will have to wait for the lease to expire before making any changes.

How to Sell a House with Tenants

Selling a rental property with tenants poses unique challenges for landlords looking to sell their property in Maryland. Understanding the rights and lease agreements of tenants is crucial in navigating this process smoothly. 

Prepare Your Rental Property for Sale

When preparing your rental property for sale, effective communication with tenants is key. Let them know about your intention to sell according to Maryland law and the lease agreement.

Make repairs and necessary improvements to help attract potential buyers. If possible, work with your tenant to stage the home to make it more appealing.

Price and Market Your Rented House

Evaluate the current market conditions and set an attractive price that is appealing to other investor buyers.

Working with a real estate agent experienced with property investors can help you create an effective marketing strategy to reach the right buyers. However, you can certainly sell your property yourself to save on commissions.

Negotiate and Showing with Potential Buyers

During the negotiation process, consider adding an addendum to the existing lease in order to address any concerns that may arise. Coordinating showings and inspections with tenants is essential to ensure a smooth home sale.

Handling offers and counteroffers requires careful consideration to protect your interests while also accommodating the needs of potential buyers and those of your tenants.

Finalize the Sale and Transition Tenants

Finalizing the sale and transitioning tenants involves preparing for the settlement process and providing tenants with notice to vacate if necessary.

If your tenants are planning to move, assisting them with relocation options can help make the process easier for all parties involved.

Failing to comply with current landlord and tenant housing laws can result in costly legal battles when selling your rental home. Here are some tips for when you want to sell an investment property with tenants in Maryland:

  1. Understand your legal rights and obligations as a landlord. This will ensure that you are acting within the confines of state and local laws when it comes to selling rented property.
  2. Let your tenants know about your intention to sell. This will allow them to prepare for the impending sale and potentially make arrangements for their future housing.
  3. Provide First Right of Refusal – offer your tenant the opportunity to buy before anyone else. This can eliminate the need for finding new tenants and make the process of selling a rental easier.  *If your rental property is located in Baltimore City or the City of Takoma in Montgomery County, you are legally required to offer first right of refusal to your tenants.

Challenges of Selling a Rented House in Maryland

Before you sell your property with tenants it is important to be aware of the challenges involved and know your legal rights and obligations as a landlord so you can be better prepared.

  1. Difficult to find a buyer. Most home buyers are looking for a house to move in to not one that is already occupied. Additionally, some landlords don’t like to take on existing tenants, especially those with a bad rental history or if the tenants are being difficult.
  2. Lower sale price. Most buyers are not looking to purchase a property with people living it. The buyers interested in purchasing occupied properties are often looking for a good deal or one that will make them money, so they are unlikely to pay top dollar.
  3. Showings with tenants. Unless you plan to sell the house for pennies on the dollar, it will be hard to find a buyer who will buy sight unseen. You will need give your tenant sufficient notice for showings and walkthroughs.
  4. Uncooperative tenants. Difficult renters can make potential buyers uneasy and less interested in a property. It might give buyers second thoughts because they could worry about future problems or hassles with the tenants.
  5. Completing repairs. It’s also hard to make renovations when people are living in the house, as it’s challenging to find the right time to do the work without inconveniencing the tenants.
  6. Property condition and appearance. Buyers care about how the property looks and feels. You want to make sure that your property is clean, attractive, and well-kept. But this can be hard when you have tenants who may not cooperate or care. You also have to respect your tenant’s privacy and quiet enjoyment.

By understanding the challenges involved and following housing laws most landlords can navigate this process successfully with the assistance of a real estate agent or on their own.

Should You Sell Your Tenant Occupied Property?

Deciding whether or not to sell your tenant occupied property is a personal choice that depends on your specific circumstances.

One benefit to selling a rented house with tenants is that you’ll continue generating rental income while the property is on the market. 

If you need to sell your investment property quickly or if you no longer wish to be a landlord, selling the rental property with existing tenants AS-IS may be the best option for you. 

However, if you have good tenants in place and are generating steady rental income, it may be worth keeping the property longer as an investment.

Ultimately, weighing the pros and cons and consulting with a real estate agent who works with rental investors can help you make an informed decision.

Options for Selling a Tenant-Occupied House in Maryland

Once you have decided to sell your house with tenants, there are a few options available to you:

  1. Sell AS-IS with tenants. Having tenants in place can make the property more attractive to buyers looking for a turn-key investment property. Though, your total interested buyer pool will be smaller.
  2. Wait until lease expires. This will allow you to sell the property without any tenants in place. Though, if the tenants still have several months left on their lease and you need to sell quickly, this isn’t an option.
  3. Offer cash for keys. You could possibly end the lease early so you can sell an unoccupied rental. Check with your local housing laws, but some landlords offer their tenants money to break the lease and move out early.
  4. Sell to current tenant. Your current tenant may be interested in buying the house. If so, you get to avoid going through the trouble of finding a buyer and trying to convince your tenant to break the lease early in order to sell.

No matter which option you choose, selling a rental property with tenants fast in Maryland requires careful planning and consideration in addition to compliance with all applicable laws.

Sell Your Occupied Rental Property for Fast Cash

After you’ve decided to sell your rental property in Maryland, consider selling to an investor directly, such as professional house-buying company Creo Home Buyers.

We specialize in buying houses with tenants and offer a quick and hassle-free selling experience. We understand the unique challenges that come with selling a rental property and ensure a fair cash offer for your property.

Say goodbye to the headaches of being a landlord and sell your rental property with tenants fast and easily with Creo Home Buyers. Request a free all-cash offer for your rented home in Maryland today!

Request a Free Cash Offer!

Curious to find out how much you could get for your house in Maryland? All of our offers come with no obligation or pressure to accept and we buy houses in any condition.

Sell your house fast AS-IS in without paying agent fees, making repairs, or even cleaning. Close on your schedule.

See how much we can offer for your house today!

Get My Cash Offer!

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