Selling a Rental Property With a Tenant: Is It Legal in Missouri?
Selling a rental property with a tenant in Missouri means following rules. Both landlords and buyers need to know Missouri's laws about renting and selling homes. It's important to understand everyone's rights and follow the rules to sell a rental property with tenants legally.
What Are Tenant Rights in Missouri?
Tenants have the right to a habitable dwelling. As a landlord, you must maintain the property in a safe and livable condition. Tenants have the right to privacy, which means you cannot enter the property without proper notice, except in emergencies.
Missouri law allows for both fixed-term leases and month-to-month leases. Fixed-term leases have a specific end date and cannot be terminated by the landlord unless the tenant violates the terms of the lease. Month-to-month leases can be terminated by either party, provided proper notice is given.
During the sale of a rental property, tenants in Missouri have the right to continue living in the property until the existing lease expires. The new owner must honor the terms of the lease, including rent payments and maintenance responsibilities. However, if the lease includes an early termination clause, the landlord may terminate the lease with proper notice.
What Are My Obligations to the Tenant When Selling My Rental Property?
You must provide your tenant with proper notice of your intention to sell the property. Missouri law requires a notice of at least 24 hours before showing the property to prospective buyers. This allows the tenant to prepare for the visit and maintain their privacy.
You must ensure that the tenant's rights are protected throughout the selling process. This means that you should not interfere with their quiet enjoyment of the property and should address any concerns promptly.
If a prospective buyer expresses interest in purchasing the property and wishes to continue renting it, you must inform them of any existing lease agreements..
Legal Considerations When Selling a Rental Property in Missouri
One important aspect to consider is the restriction on evicting a tenant for the sole purpose of selling the property. Missouri law protects tenants from being unjustly evicted due to a sale. However, if the tenant violates the terms of the lease, such as failing to pay rent or causing excessive damage to the property, an eviction may be possible.
Missouri law requires landlords to disclose any known defects or hazards in the property to prospective buyers. This means that you must provide accurate information about the property's condition and any necessary repairs or maintenance.
If the property is subject to any government-subsidized housing programs, there may be additional restrictions and regulations that need to be followed during the sale.
What Is the Process of Selling a Rental Property with Tenants?
When selling a rental property with tenants in Missouri, it is essential to follow a specific process to ensure a smooth and legally compliant transaction.
- Provide Proper Notice: As mentioned earlier, you must provide your tenant with at least 24 hours' notice before showing the property to prospective buyers. This allows the tenant to prepare for the visit and maintain their privacy.
- Prepare the Property: Before listing the property for sale, make sure it is in good condition. Clean and declutter the space, make any necessary repairs, and enhance its curb appeal. A well-maintained property will attract more potential buyers.
- Work with a Real Estate Agent: Hiring a reputable real estate agent who has experience with selling rental properties can be beneficial. They can handle the marketing, showings, and negotiations on your behalf, ensuring a smooth process.
- Market and Show the Property: Utilize various marketing strategies to attract potential buyers. Your real estate agent will coordinate showings, respecting the tenant's privacy and providing proper notice as required by Missouri law.
- Negotiate and Close the Sale: Once you receive offers from prospective buyers, negotiate the terms of the sale. If a buyer wishes to continue renting the property, ensure that the lease agreement is properly transferred. Work with a real estate attorney to handle the legal aspects and ensure a smooth closing.
Things to Consider When Selling a Rental With a Tenant
Lease Agreement
Review the lease agreement thoroughly before listing the property for sale. Familiarize yourself with the terms and conditions, including the lease end date, rent amount, and any early termination clauses. This will help you provide accurate information to potential buyers and avoid any misunderstandings.
Covering Tenant Moving Expenses
Consider whether you are willing to cover any moving expenses for the tenant if they need to vacate the property before the lease expires. Offering this assistance can make the transition easier for the tenant and potentially attract more buyers who are interested in an immediate occupancy.
Security Deposits and Rent Payments
Discuss with the tenant how the security deposit and rent payments will be handled during the sale process. Ensure that any remaining security deposit is transferred to the new owner according to Missouri law. Clearly communicate to the tenant about the payment procedure during the transition period.
Agree on a Moving Timeline with the Tenant
If the tenant needs to vacate the property before the lease expires, work with them to establish a moving timeline that is convenient for both parties. Being flexible and understanding can help maintain a positive relationship with the tenant and facilitate a smooth transition.
Cash Home Sale: The Fastest Way to Sell Your Rental House
In a cash home sale, a real estate investor purchases your property directly, eliminating the need for listing it on the market and dealing with potential buyers.
- Offers a fast and efficient process. Since real estate investors buy properties as-is, you can skip the repairs and showings associated with a traditional sale. This can save you time, money, and energy.
- Provides certainty and convenience. Real estate investors are often experienced professionals who can make quick decisions and complete the transaction within a short timeframe. This can be particularly advantageous if you need to sell your rental property quickly or are dealing with difficult tenants.
- Eliminates the need for financing. With a cash offer, you receive the full payment upfront, allowing you to move on from the property without any lingering financial obligations.
Sell Your House Fast in Missouri and Kansas
If you need to sell your house fast but don’t want the hassle of a traditional home sale, contact Brittco. We buy houses as-is. No repairs are needed. Avoid closing costs and realtor commissions. Close in as little as seven days. Call 913-423-8856 for a fast cash offer from our local home buyers in Missouri and Kansas.