Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Residential

Quick tips for working with tenants in short sale listings

It is nearly impossible to quickly and efficiently sell a property with an uncooperative tenant. And, since time is of the essence in a short sale where the mortgage payments have ceased, it is vital that tenant and landlord get on the same page.

A sticky situation

It’s been a long time since I’ve read Dale Carnegie’s book, but I’m pretty certain that collecting rent and not paying the mortgage on that same rental was not a suggestion that came from How to Win Friends and Influence People.

It is not uncommon for those who own a rental and are having trouble making the bills to cease making the mortgage payments on the rental. It’s also not uncommon for the owner of the home (the one who is still collecting the rent, but not paying the mortgage) to neglect to mention to the tenant that the end of tenancy may be imminent.

Listing a rental as a short sale can be challenging. Tenants are often a little bit disturbed when they learn that they have been paying the mortgage, yet those payments have not been making it to the bank. So, when the tenant learns that he (or she) now was to be flexible and allow prospective buyers into the property for showings, the tenant is generally not a happy camper.

It is nearly impossible to quickly and efficiently sell a property with an uncooperative tenant. And, since time is of the essence in a short sale where the mortgage payments have ceased, it is vital that tenant and landlord get on the same page.

Advertisement. Scroll to continue reading.

Two Tips for Working with Tenants in Short Sales

  1. Ask the tenant to find a new place to live immediately; offer a cash incentive if necessary.
  2. Offer a reduction in monthly rent during the course of the process in order to motivate the tenant to be accommodating to requests for showings among other things.

I recently heard a story about a tenant that was so irritated with his landlord that he trashed the property on day prior to the short sale closing. As a result of the tenant’s behavior, the landlord (the short sale seller) had to pay a few thousand dollars in repairs and clean up so that the buyer would continue with the purchase.

Like I said (and maybe it’s an understatement), the landlord-tenant relationship in a short sale situation was not addressed in How to Win Friends and Influence People.

Written By

Melissa Zavala is the Broker/Owner of Broadpoint Properties and Head Honcho of Short Sale Expeditor®, and Chief Executive Officer of Transaction 911. Before landing in real estate, she had careers in education and publishing. Most recently, she has been able to use her teaching and organizational skills while traveling the world over—dispelling myths about the distressed property market, engaging and motivating real estate agents, and sharing her passion for real estate. When she isn’t speaking or writing, Melissa enjoys practicing yoga, walking the dog, and vacationing at beach resorts.

1 Comment

1 Comment

  1. Pingback: Some Good Summer Reads - Short Sale Expeditor

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Tech News

(Tech News) Auction.com has recently seen a fat cash infusion from Google, and both seek to revolutionize real estate. Again. But who really benefits...

Housing News

(Housing News) Fannie Mae is offering incentives on foreclosures, and while many homeowners are unaware, many agents are as well - time to take...

Housing News

(Housing News) Short sale agents have different tasks than a traditional agent, and the path to success looks quite different; these are seven habits...

Housing News

(Real Estate) Real estate agents are often asked how they survive the slow season, but the truth is that there is no such thing...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.