Leasing your Texas home can be an effective way to defray the cost of owning it. Although the tenant has control of the property, you can set limits on how he or she can use it. Furthermore, you retain the right to transfer ownership of the property at any time before a lease expires. However, the process of selling a home that is occupied by a tenant is slightly different from selling one without someone living in it.
The lease remains valid after the home is sold
Whoever acquires the home must abide by the terms of the existing lease. For instance, if it doesn’t expire until six months after the house is sold, the new owner would have to allow the tenant to remain there for six months. Conversely, the tenant is still responsible for making rental payments until the deal runs out.
You can ask the tenant to leave voluntarily
An existing tenant may be willing to leave prior to the end of a lease to accommodate the new owner. There may be an especially good chance of the current occupant leaving before the lease expires if you have a good relationship with this person. It may also be possible to convince a person to terminate a contract early by agreeing to cover some of the costs related with finding a new place on short notice.
Monthly rental agreements can be terminated up to 30 days in advance
If you have a month-to-month lease with a tenant, it can be terminated by providing sufficient notice. Typically, you must announce your intent to end such a rental agreement 30 days before it expires. A real estate law professional may be able to help coordinate the closing date on the sale of your home with the expiration of an existing lease.
If you have questions about attempting to sell your home, it may be a good idea to speak with an attorney. A legal professional may answer your questions and take other steps to ensure that the transaction closes smoothly.