Selling a rental property in Massachusetts poses unique challenges compared to selling an average home. If you currently have tenants residing in the property, navigating your rights and responsibilities as both a homeowner and landlord is crucial. Many homeowners struggle between waiting until the end of their lease or if it’s possible to sell the units while they are still occupied. 

Other questions that often arise are whether tenants can remain in the property during the sale process and if they can continue their lease under new ownership. In this blog post, we will address these questions to provide you with confidence when selling a rental property. While the presence of tenants may add complexity, with the right strategies in place, a smooth and successful home sale is indeed possible.

Upsizing your investment property? Click here to read our guide to finding high-potential investment properties in the Boston area.

Should I Wait Until Tenants Leave?

What can a landlord do to sell a rental property when tenants haven’t finished the length of their lease? The first step is to carefully understand the lease agreement that was signed by both parties. A tenant-at-will lease is much more flexible than a fixed lease, but that doesn’t mean you can’t sell your property while occupied. Providing written notice of intent to sell is an absolute must. A tenant-at-will agreement in Massachusetts can usually be terminated with a notice of 30 days, or one full rental period in advance, whichever is longer. However, a fixed lease termination date has to stand as is unless mutually negotiated and agreed to by both parties. 

Can Tenants Stay During The Sales Process?

If you’re eager to start the marketing of the property while the tenants’ lease is still ongoing, that is still possible. However, it’s important to bear in mind that the tenant retains all the rights outlined in their lease, including the right to privacy. Regarding home showings, the tenant must allow reasonable access to the property for the homeowner or real estate agent to conduct viewings. Therefore it’s recommended to engage in discussions with your tenant regarding advance notice and mutually convenient showing times to facilitate a smooth process for all parties involved. Throughout the home sale process, the homeowner also retains the right to enter the rental property for repairs and maintenance, provided that tenants receive advance notice. This practice ensures that the property presents its best appearance, thus facilitating a quicker and easier home sale.

On the hunt for general home-selling advice? Check out these blog posts next.

• What Can I Do If My Home Isn’t Selling?
• How to Sell Your Home For the Most Amount of Money
• How Does an Agent Determine My Home’s Value?

Can Tenants Transition To A New Homeowner/Landlord?

A new homeowner acquiring a rental property in Massachusetts must consider the legal framework governing tenants’ rights. It’s important to understand the regulations concerning security deposits and the last month’s rent in relation to existing leases. Additionally, new homeowners should be aware of the presence of lead paint in properties built before 1978. Being thoroughly prepared regarding Massachusetts state laws as it relates to tenants’ and landlord rights is highly advisable.

Note: A detailed review of these laws can be located on the Massachusetts Government website here. 

The Bottom Line

There are certain considerations that are specific to rental properties when the time comes to sell. Tenants have rights, including their right to privacy, that must be respected. Tenants also have leases that need to be honored or negotiated by both parties. Taking the time to understand both tenant and homeowner’s rights is a critical first step in this selling process. Once you have researched those rights, you can confidently move ahead to put your rental property on the market. Working with a seasoned real estate agent with knowledge of rental home sales is an added advantage to homeowners. At Andersen Group Realty, we are skilled and ready to assist you in ensuring a smooth and fair process for all.

Considering the sale of your North of Boston home? Discover Andersen Group Realty’s unparalleled selling services today. Click here to send us an email or call 781-729-2329 to get started.