When a landlord decides to sell their property, the tenants have certain rights that must be upheld. In this article, we will outline those rights and provide a guide to what tenants can expect during and after the sale of a property. So whether you’re a tenant who is about to go through this experience or just curious about what happens, keep reading for more information.
Selling Your Rental Property — What You Need To Know
With real estate prices surging since 2021, it can be attractive to sell your rental property. Before you do so, however, there are things that you need to be aware of before you can proceed with the sale:
Know Your Tenant’s Rights
Before deciding to sell your property, it’s important to understand tenants’ rights when it comes to a landlord selling their rental property. Tenants have several rights when it comes to this type of situation—it’s important to honor these rights and to make sure that tenants know their rights as well.
Comply with State and Local Regulations
In addition to tenants’ rights, landlords must comply with state or local laws regarding selling a rental property. This could include giving tenants advance notice of the sale or providing tenants with relocation assistance if required by local laws. Make sure you understand your rights and obligations when selling your property to avoid any legal issues.
Know Your Finances
It’s important to understand your financial situation when selling your rental property. You will need to factor in any outstanding debts, expenses related to the sale, and any tenant deposits you may need to return. Ensure you have an accurate understanding of your finances before deciding to sell.
Get To Know Your Rights as a Seller
As a seller, you have rights that the buyer must uphold. This includes providing tenants with written notification of any changes to the rental agreement, including rent increases. You also have rights when it comes to advertising and marketing your property, as well as being able to negotiate the price with potential buyers.
There are different types of lease considerations, each impacting determining your tenant’s rights when you sell the rental property. It’s important to understand the type of lease your tenants have and their rights.
When tenants are under a fixed-term lease, they will remain in the property until their lease agreement expires. The tenants will then be released from the agreement and no longer have any rights to stay in the property past the end of the lease.
If tenants are on a month-to-month lease, tenants must be given at least a 30-day notice before they can sell the property. This gives tenants enough time to search for a new place to live and prepare for the move.
What are the General Tenant Rights?
Now that you know what to consider when selling your rental property, it’s time to focus on knowing your tenant’s rights during this process. While tenant rights vary from state to state, general rights apply to tenants throughout the United States. These include the following:
Right to 24 to 48 Hours Notification Before Showing
Showcasing the rental property can be difficult when you have tenants occupying the property. However, during this process, you must also avoid violating your tenant’s right to privacy. Tenants should be given 24 to 48 hours of notice before showing the property so they can make necessary arrangements.
Right To Schedule Appointments at Reasonable Hours
In addition to the advance notice, you must be courteous of the appointment timing. It’s important to showcase the property to prospective buyers during reasonable hours. This typically means no showing before 8 AM or after 7 PM. It’s also important to communicate with tenants if there is an exception.
Right To Receive Notice To Vacate
Tenants have the right to know when to vacate the property. Depending on the state and type of lease, tenants should be given a 30-day notice if they are on a month-to-month lease. On the other hand, tenants on a long-term lease will remain in the property until the end of their lease agreement.
Right To Receive Relocation Fee (If Applicable)
Under certain circumstances, tenants may be entitled to receive a relocation fee when they are asked to vacate the property. This varies from state to state, and tenants should check with tenants rights organizations for more information about the laws that apply in their area. In addition, tenants should also be aware that they are not entitled to relocation fees if they have caused damage to the property.
Right To Accept Lease Termination Payout (If Applicable)
Depending on the state, tenants may have the right to receive a payout from their landlord if they are asked to move out in the middle of a lease agreement. This is known as a lease termination payout or “cash for key,” and tenants can use this money to help with relocation costs. However, tenants should know that tenants are only entitled to this if they have not caused any damage to the property.
Right To Continue Occupying the Property After a Change of Hands
Keep in mind that the tenant’s agreement is tied to the property—not the owner. So, if the property is sold while the tenant is still under the lease contract, tenants retain their rights to remain in the property until the end of the lease agreement. At that point, tenants need to move out of the property, and their rights will no longer apply.
Right To Leave Property in Whatever State They Choose
For most tenants, there’s not much incentive to leave the property in better condition than when they moved. However, tenants are not obligated to leave the property in pristine condition before moving out. Tenants are within their right to leave the property in whatever state they choose, as long as tenants have not caused any damage beyond normal wear and tear.
These rights are important for tenants to know if a landlord needs to sell the property tenants are living in. By understanding tenants rights when the property is sold, tenants can avoid any unwanted surprises or violations of their rights.
Why Choose ReliaBills for Rental Properties?
As a landlord, getting paid on time is the number one priority. However, staying organized can be challenging, with tenants spread across the country and each tenant having their payment schedule. That’s why you should use ReliaBills, the leading invoicing and payment processing platform, to streamline tenants payments and ensure you get paid on time.
With ReliaBills, you can create a comprehensive payment processing system that caters to your specific needs and preferences. In addition, you can take advantage of features such as recurring billing, where tenants can easily set up automatic payments so you’ll never miss a rental payment again.
Whether your tenants are on a monthly or annual leasing agreement, ReliaBills can help you keep tenants payments organized in one place. You can also enroll them in AutoPay to charge their accounts automatically on their due date.
ReliaBills is the perfect solution for tenants and landlords alike, giving tenants the convenience of one-click payments and giving landlords peace of mind that they’ll get their rent on time. Get started today by creating a FREE account! You can also check out our website at www.reliabills.com for more information.
Landlords looking to sell their property should be sure to inform tenants of their rights, as tenants may have the right to continued occupancy and other benefits. In addition, using a platform like ReliaBills can help landlords manage tenant payments more easily and ensure that rent is always paid on time.