When selling a rental property, deciding whether to list it while the tenant is still living there or to wait until they’ve vacated can be tricky. Both options have their pros and cons, and the best choice often depends on your priorities.
Option 1: Listing After the Tenant Moves Out
Listing your property after the tenant leaves can save you the hassle of scheduling showings around the tenant’s availability. Without tenants, you have the opportunity to stage the property and ensure it’s in top condition for potential buyers, which is key to making a strong first impression.
Pros:
- Easier staging: With the tenant gone, you can clean, declutter, and stage the property to appeal to a broader range of buyers.
- Smooth showings: No need to coordinate with tenants for showing times, making it easier for potential buyers to visit.
- Higher selling price: A well-staged, vacant property often presents better and can sell for a higher price.
Cons:
- Loss of rental income: The property will likely be vacant for at least a couple of months, particularly if the closing takes 60 days or longer.
- Costs of staging and maintenance: You’ll need to cover the cost of staging, cleaning, and any maintenance work while the property is empty.
Option 2: Listing While the Tenant is Still Inside
If you choose to list while the tenant is still living in the property, you can continue to collect rent, reducing your holding costs. However, managing showings and maintaining the property’s condition may become more challenging.
Pros:
- Reduced costs: You’ll continue receiving rental income, which helps cover your costs while the property is on the market.
- Quicker listing: You don’t have to wait for the tenant to move out before listing the property, potentially speeding up the sale process.
Cons:
- Tenant cooperation: Coordinating showings can be difficult, especially if the tenant isn’t accommodating.
- Property condition: Tenants may not keep the property in showing-ready condition, making it harder to present the home in its best light.
- Harder to sell: Potential buyers might be discouraged by the presence of tenants, especially if they plan to live in the property themselves.
Real-World Example: Highest Semi-Detached Price in Cedarwood, Markham
In a recent sale, Leo Shiu handled a rental property where the tenant was still residing. Instead of listing immediately, Leo advised the seller to wait until the tenant had moved out. Once the property was vacant, Leo had it cleaned and staged to showcase its full potential. As a result, the home sold for the highest semi-detached price in Cedarwood, Markham that year(May, 2024), proving that waiting and presenting the property in the best possible condition can pay off.
Why Work with an Experienced Agent Like Leo Shiu
Having an experienced real estate agent who understands how to maximize the value of your property is critical. Leo Shiu, one of Toronto’s top listing agents with 18 years of experience, he has helped numerous clients sell their homes for top dollar.
Conclusion
Ultimately, the decision to list before or after a tenant leaves depends on your financial situation and how much effort you’re willing to invest in preparing the property. If maximizing the selling price and minimizing hassle are priorities, waiting for the tenant to vacate is often the best route. However, if you’re looking to reduce costs and speed up the process, listing with a tenant in place might work as well.