Sell with or without tenant? Your Opinion?

[NewUrbanGirl]

Your opinion wanted...on whether it is better to try to sell a property with a long-term tenant currently renting, or empty? Obviously, any rental income would be pro-rated to the buyer. Assume tenant is stable, takes nice care of the house and is willing to vacate the premises for short periods during reasonable showings. I can make a nice case for either situation, and would welcome your thoughts. Thx.

 

[Smiling JOe]

I think it is easier to sell it without long term tenants. The main reason being that homes in this area do not provide positive cash flow. Let me clarify that -- homes in this area sold at today's prices do not provide positive cash flow and don't come anywhere near it. Most buyers don't want to purchase a place with negative cash flow and not even be able to use it occassionally. I think you will have better luck without the long term tenants. Short term rentals in place are a different story because the buyer can still work vacation into the schedule well before one year passes. Just my .02, but I am curious to hear other opinions regarding this issue.

 

[GoodWitch58]

Agree. And, it's easier to show empty. People can visualize themselves in an empty place...if there are tenants the prospects are distracted...

 

[NotnKansas]

Well, if your house is vacant for an extended amount of time you'll probably run into some issues with your homeowners insurance. They would proably either drop you or charge you even more. Homeowners insurance companies are not a big fan of empty houses!

Good luck!