What you should do before selling property with existing tenants

Wednesday April 8 2020

Before selling the property, consider the

Before selling the property, consider the contract you signed with your tenant. You can either wait for the contract to expire or inform the tenant about your intentions. NET PHOTO 


Property managers or owners may opt to sell their properties when they are still occupied for different reasons. If you end up in such a situation, here is what to consider.

Inform tenants
Its not fair to sell your property when you have not informed your tenants about the new changes so ensure you inform your tenants about your intention to sell the house. Some might opt to work with the new management, others may not.

Tenants’ rights
Adnan Mpuuga, a property manager from East Lands Agency, says as a property manager, you should consider tenants rights before starting advertising because they may end up suing you for breaching the contract.

Contract period
Mpuuga says before advertising the property, you should consider the contract you signed with your tenant. You can either wait for the contract to expire or inform the tenant about the new development.

“It’s not easy to come to an agreement with a tenant if new management means changes in tenancy terms. Some tenants may opt to look for another house and then you have to refund their money, especially when the new changes are not favourable,” he says.

Mpuuga adds that the nature of contract matters because if you are not serious, you may end up making losses because tenants can drag you to court and you have to pay a fine for breaching the contract.

“It’s advisable to issue notice to all tenants before making any changes. This will help you to know what the tenants think about the changes and what they can do,” he says.

Pay your tenant and vacate
Mpuuga says if you have got a buyer, you can opt to pay your tenants to vacate the houses to avoid any misunderstandings.

“If the buyer has paid the commitment fee, you can use that money to pay the tenant so that you can clear the house for the new management and its better to have a new tenant as part of the changes because old tenants tend to mislead the new tenants and start being defiant,” he says.


Mpuuga adds that paying tenants is one of the best solutions because you pay for the remaining months and its not like refunding the whole amount and the new buyer can help you with this.

“While paying them, you can also opt to pay the moving costs or offer cash to cover the next security deposit,” he says.

Look for an investor
Mpuuga says it is better to look for an investor because they know some of the key issues of managing tenants and properties.

“Investors can agree to work with the existing rules and regulations so that you can remain with the tenants because sometimes it’s hard to get new tenants,” he says

Mpuuga adds that although the market for investors is not so big and sometimes you get almost no profits, it also saves times and expenses of paying tenants to vacate.

Giving notice on time
Julian Mutibwa, a property agent, says if you are planning to sell a property with tenants, you have to give a notice in time, for instance, a month before sale date. “Let the tenants know about the new management in time so that they can plan in time for their next move if they can stay or move out,” she says.

Mutibwa adds that giving notice to the tenant in time also helps the agents to know the right time for advertising so that tenants do not complain about being evicted without notice.
“Tenants will tell you the right time to start advertising and to know the right rules and regulations in case the buyer has shown interest,” she says.

Talk to your tenant if they can buy your property Mutibwa says if you have failed to get a genuine buyer, you can ask your tenants if they are interested in buying your property.