What do you do when you want to sell your house, but it’s currently occupied by renters? It turns out that there are a few different ways that this can work. In this article, we will discuss a couple of the options and how they might affect both the landlord and renter. We will also talk about what is legally required in Missouri. Finally, we will explain some of the steps for each option so that you know what to expect if this becomes an issue for you or someone close to you.
Landlord Rights in Missouri
Before sticking that for sale sign in the yard, there are a couple of things you’ll want to check into regarding landlord rights in Missouri.
There are a few different laws in Missouri regarding landlords and the properties they rent. Missouri is one of the states where tenants can be evicted when there is no lease agreement with the landlord. However, tenants who break a lease in Missouri will be responsible for making rental payments until the end of the lease term or until the unit is re-rented. But the landlord has a legal obligation to make a reasonable effort to re-rent the unit.
If the landlord were to break the lease, however, they must abide by the state’s eviction timeline. For a landlord to break a lease early, there either needs to be an:
- Early termination clause
- Nonpayment of rent
- Violation of lease terms
- Illegal acts occurring on the property
Tenants are entitled to at least 30 days of written notice before eviction.
When it comes to taking care of the property, a tenant in Missouri must comply with reasonable requests from their landlord, such as cleaning or repairing any damage done to their property without prior approval. The landlord also has the right to inspect the property during regular business hours if they feel something is wrong. That is unless entry notification policies are included in the written lease.
If you’ve had great tenants and no cause to evict them but would like to sell the property, you have a few options to proceed.
- Wait until the lease is up This is a risky move as you would have to wait for months before the lease ends. Some landlords need to sell right away; others are hoping to time it right to list during the best time to sell a house. So timing the sale and end of the lease may be difficult. But if you were to wait, more buyers may be interested in the property if it’s vacant.
- Sell to the tenant- If you want to sell the home, you can always try to sell it to your tenant. However, this may be challenging because the tenant may need some time before they are financially ready to purchase the home.
- Sell with the tenants attached- You can try selling your rental with tenants. This may even be an incentive to some buyers wanting to buy an investment property. Of course, as soon as they close the house, they’re already making monthly rental income.
- Invoke the sale clause– If there is a “lease termination due to sale clause” in the original lease, the landlord has the right to terminate it early if the property sells. In most cases, however, tenants have 30 days to leave the property if it is sold.
Of course, if your tenants have broken any original lease terms, there may be cause to evict them. Going through an eviction is a process, though, and can take some time. Hopefully, your particular situation doesn’t require that step.
Renters’ Rights in Missouri
When it comes to selling a rental property, landlords, have rights but so do the tenants. You’ll want to keep in mind what these renter’s rights in Missouri are, so that way your home sale runs smoothly and without legal hiccups. First, we’ll discuss several of these renter’s rights in Missouri, and then we’ll let you know what you should do to be a good landlord in Kansas City when moving forward with the sale process.
Tenancy Laws In Missouri
The first thing landlords need to remember is that their tenancy laws in Missouri will play an important role in the sale process. These tenancy laws can vary from state to state, but they do exist, and you need to be aware of them before moving forward with selling your rental property.
Tenants in Missouri are entitled to the following, according to the Landlord-Tenant Code:
1. Reasonable notice of eviction (tenancy laws in Missouri)
2. Reasonable notice to end the month-to-month tenancy (tenancy laws in Missouri)
3. Written lease agreement with termination date written in the document
4. The unit is returned in better condition than when it was rented out
5. Storage space for tenant’s property during remodel or repair work on the unit
6. Maintenance service by the landlord during any time of the lease year, not just before the tenant moves out
7. Security deposit refunded to the tenant within 30 days of moving out unless there are missing rental payments and/or repairs that exceed normal wear and tear.
These are just a few of the renter’s rights in Missouri that you need to be aware of when it comes time for selling. Let’s take a look at some more tenant-friendly laws in Kansas City, so that way we can ensure your house is sold without any major problems or issues moving forward.
Missouri Tenancy Laws
If you didn’t already know, Missouri is a tenant-friendly state. Landlords are required to post the “Tenants’ Rights” pamphlet in a conspicuous location on the premises. The laws are designed to protect tenants, not landlords. That said there are still laws that protect landlords too.
If you’re confused about your legal rights as a landlord, seeking legal advice from a real estate attorney would be advised. They can also help you better understand your current rental agreement with your tenant if you have any confusion.
The bottom line is, is it possible to sell a house with tenants in Missouri? Yes, it is!
Can You Sell a House with Tenants in Kansas City?
In Missouri, it is possible to sell a house to tenants according to the law. In Missouri, if a landlord wishes to sell a house with tenants, they’ll need to inform the tenants about the sale of the house at least 30-60 days before it is set to go through. If there is a lease termination due to a sale clause, more than likely, they also need to provide a 30-60 day notice of termination if they want to terminate their tenancy agreements early on.
The challenging part about selling a house with tenants is coordinating repairs to be made before listing the rental property. And if you’re dealing with troublesome tenants, that will also make selling more complicated. In that case, some buyers don’t want to deal with the hassle of buying a rental property with tenants attached, let alone ones that are troublesome.
This is when selling to one of the companies that buy houses in Missouri could come in handy. Unlike traditional real estate transactions involving hiring a real estate agent, paying a significant agent commission, showing the house, and waiting for the perfect buyer, selling to cash home buyers in Kansas City is simpler.
If you were to sell your house for cash to a local home buying company like KC Property Connection, you could sell the home as-is, make no repairs, and avoid costly realtor commissions and months of uncertainty. They can make you an all-cash offer for your rental property within 24 hours and close in as little as 7-days. No agent fees included.
The nice thing about working with a local home buying company as opposed to a traditional buyer, is they have more knowledge about rental properties and buying a rental with tenants. Selling to a buyer with experience with these types of transactions can help make the whole process run smoothly.
How to Sell Your House with Tenants Attached
If you’re still on the fence about selling to a home buying company, there are other ways you can try to sell your rental property, including selling it to your tenants. Below we’ll discuss the option of selling to your tenants and the two most important steps when selling your house: informing the tenants of the notice of sale and informing the buyers of the renters attached.
Sell to Tenants
Another option for selling a house with renters included is to sell directly to the tenants themselves! If you’ve experienced good rapport with your current tenant, this may be something that would work out well for all involved. Of course, there will need to be a few legalities that need to be worked out, such as their ability to afford the home and how much they are willing to pay.
Be sure you talk about all of this ahead of time, so everyone involved does not have any surprises! If your tenants can’t meet these criteria or simply don’t want the home, you may want to consider other options.
Informing Tenants of Notice of Sale
If your renters do not wish to purchase the home, they will need to be informed that their landlord intends to sell. You can give your renters a 30-60 day notice of sale when you choose to sell the property.
If they do not intend to purchase the home, you can offer cash for keys to encourage your tenants to move out. However, if they decide to stay, once the sale is finalized, a notice will have to be given with the new landlord’s information and how the deposit will be transferred.
A renter has no rights over who is buying or selling against their wishes unless there are legal agreements in place.
Informing Buyers of Renters Attached
If you sell your home to a buyer with tenants attached, those renters will also become part of the agreement.
If your buyers have tenants living in the property, they must understand what rights those renters may or may not have. There are strict laws regarding the tenant eviction process here in Missouri. If you are selling with tenants, be prepared to give buyers information about those renters. They will need to know the contact info for these individuals and may want to set up a meeting before closing on their purchase of your home.
Inform them if you have any issues or problems regarding payment from renters during this process. Be sure that they understand what they are getting into before signing any documents.
Tenant rights are complicated due to the variety of laws throughout the U.S. Landlords are required to inform tenants of an impending home sale. In addition, the landlord must inform the tenants of the ongoing process of the sale, including any changes that might occur during the sale.
Finding a buyer may also prove to be a challenge if your rental property comes with tenants attached. Potential buyers may be unwilling to purchase a property that’s currently tenanted.
If you’d like to sell your Kansas City rental house with tenants attached but are concerned about the process, contact KC Property Connection today to get started!