Selling a tenanted condo

June 11, 2010

Condo owners in a jam trying to sell their tenanted condos

Some condo sellers are in a jam trying to sell their tenanted properties. Increasingly, there are stories about tenants refusing entry for showings, threatening to sue, or insisting that they must be present and at their convenience before the homes can be shown.

Legally speaking, the tenants are obliged to co-operate when they have been given sufficient notice by the listing Realtors. Unfortunately, many tenants choose not to co-operate and throw up all sorts of road blocks to make the homes not accessible for showing. Some tenants are playing a “cat and mouse game” and just want to prevent the sales from happening.

The market is turning, and buyers are taking their time

Most Realtors are in agreement that the once hot real estate market now is cooling. The Vancouver real estate market literally changed overnight. Homes that drew keen buyers a month or two ago are no longer producing calls from buyers or Realtors. Offers that were received, often came in much lower than sellers expectations. The hard choice for many sellers is to accept the lower price, or hope another buyer will be more generous with their price offer.

Some condo owners are increasingly concerned, and fearful of a repeat of the the housing market in the spring of 2008 – home prices collapsed by as much as 15%. They are frightened and want to sell. The problem is, they have problematic tenants who are making showing and selling their homes impossible.

What to do?

If you have a tenant who is not co-operative in allowing showing of your condo, you may just have to forget about selling your condo until the lease finished. If you plan to sell your condo, the sensible choice is to leave your condo vacant and price your  home right to sell. Once you have a tenant, you are at the tenant’s mercy, and without the cooperation of your tenant, it will be almost impossible to sell your home.

If you are planning to sell your tenanted investment condo, you have to find out if your tenant will co-operate with your Realtor. If you want to sell, and also wanting to collect rent to pay your mortgage, you really need to know what you’re getting into.

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