Guest Blogger: Tips on Renting Your Property as a FSBO
For many home owners, it is not financially feasible to keep a house vacant while attempting to sell. As a result, many for-sale-by-owners (FSBO) opt to rent the property while simultaneously listing the property for sale. If you decide to take this route, frequent communication with both potential buyers and renters is critical throughout the process.
First and foremost, make sure to check and understand any local tenant-landlord regulations that may be in place. These will vary from area to area, so it is important to make sure you aren’t violating any rules. When it comes to this type of process, it certainly doesn’t hurt to ask for help.
Next, make sure you clearly communicate your plans with any prospective tenants and buyers. Renters may not like the idea of moving out shortly after moving in if the home is sold and buyers may not want to deal with tenants that are already in place. While many real estate experts suggest leaving the house vacant while it is on the market, the financial burden of doing so must be weighed by the seller against the potential rental.
If you do rent the home prior to selling, consider working with a tenant screening service like MyRental.com. Then, make sure all arrangements are clearly communicated. You may even want to talk to your new tenant about an “option to buy.” As a FSBO, this gives you flexibility to work through the selling process if a tenant expresses interest in the property but is unable to arrange for a sufficient down payment.
If the tenant is not interested in purchasing the home, it is important to make them feel comfortable with the selling process that will take place while they are renting. For example, the tenant may feel anxious about a potential buyer touring the home when they are not there. Discuss this process with your tenant and make sure they are aware that realtors may be entering the home without your or their presence.
Also make sure to keep tenants current on any activity planned at the property such as painting or repair work; and when conducting this activity make sure arrangements are made to protect their personal belongings. Since the home will need to be kept tidy all the time, consider offering to pay for a cleaning service or carpet cleaning to help get the home ready to show. This can take some pressure off the tenant and at the same time build some good will.
While a little tricky, renting a property while simultaneously listing it for sale can be done. Remember that the most important step is to be upfront with all parties involved in the process.
MyRental.com is a service of CoreLogic®, the leading tenant screening services used by the multifamily housing industry. Developed for the needs of smaller landlords, individual owner-investors, and residential property owners, MyRental.com provides all of the same vital and cost effective resident screening services used by some of the largest residential real estate investment companies and property managers.