If you have finally decided to sell your house, you might have to consider some factors related to real estate property beforehand, mainly if you are selling your property for the first time and that too with tenants in it.
If you have tenants or renters in your home, you must have second thoughts about exactly what you must do. Should you ask them to leave and look for other places before selling your place? Or should you deal with the buyer to take charge and let the tenants stay while authorizing new ownership? Or would the new landlord accept the conditions on which you have made an agreement with the renter?
Well, all this can be filled with a lot of hassles and the fear of what if you violated any legal prohibition in Dubai that could lead you to trial or penalties. But fear not, now that you have made up your mind about selling your property, it is pivotal to consider all the other factors that are super important and must be taken care of before you make a purchase of your property in Dubai.
From evaluating the tenants’ rights that have been stated, sealed, and signed in the agreement to all the laws in the Emirate of Dubai, there are a plentiful of things that you must remember before selling your property with tenants in it. This will save your honest investment in real estate too.
How You Can Sell Your Property with Tenants
Selling your house with tenants in it can become a hustling thing, and not knowing the laws that tenants can claim or even what house owners have can become big trouble. Therefore, it is pivotal for every house owner to acquaint themselves with all the dos and donts of selling your property with tenants in it. This is where Mai Alfalasi, the leading law firm in Dubai, presents the best guide for selling your property while having renters in it.
a) Find a Reliable & Credible Real Estate Agent
Before buying or selling any property or land in Dubai, UAE, it is paramount to consider if the property is registered with RERA– the Real Estate Regulatory Agency in Dubai. It is pivotal to consider real estate agents from RERA who are honest, professional, expert, and trustworthy to provide the legally-binding solutions to landlords across Dubai. Fixing a meeting with them in person will give you the perfect idea of whether you should move with them or not. Moreover, having the leading legal advisor from Mai Alfalasi would even solidify your case.
b) Simply Sell With Tenants
A lot of people don’t consider it, but instead of incentivizing or paying off extra money to your tenants, you can simply sell it happily with tenants in it. Pulling the deal off will require negotiation skills and some interpersonal skills. But one thing to do is to have a fixed-term lease of about 60 to 90 days. Still, in order to make the smooth transition, homeowners will require dialogue and create an agreement with the tenants.
And when your tenants agree to this point. You will need to make sure that the tenants cooperate while the buying parties visit the place to evaluate and inspect. Here is another thing to note. When you create an agreement with your tenants, they will get an incentive or, in some cases, a good term of security deposits.
c) You Need to Wait Until the Agreement/Lease Expires
Another option when selling your house is to simply wait until the agreement or lease of the house expires. If you have a lease or agreement running for years, you might need to look for other options. But if you have agreed with the tenants that go from month to month, it probably becomes an easier and go-to option for the homeowner.
This is a flexible and better option, but only if the agreement is near the expiry date or a month-to-month lease plan. Here you will be adequately aware of the tenant’s timeline, which will help you frame your plan.
d) You Can Make an Agreement with Your Tenant
The rules are pretty strict for both the tenants and homeowners. You can only vacate your property if your tenant breached some sort of agreement like engaging in illegal activities, damaging the property, or not paying the due rent on time. Without any violation, you simply have to wait until the lease or agreement period is served.
On the contrary, there is another option that might serve you well. Some homeowners who have plans to sell their properties add an immediate termination clause in the agreement. But if anyhow you haven’t added it, perhaps the best way is to get into communication and run the negotiation cycle. By this, I mean you can ask to terminate the agreement by offering a considering incentive to the tenants. Though it might sound a little tricky, eventually, it can get the job done.
Some Other Considerations When Selling a House with Tenants
Here are some other considerations you might need to consider before selling your house with tenants in it.
- Having a good advocate or legal consultant in Dubai dealing with your sale or purchase matter is the best solution for you that is legally binding as well.
- The first and foremost thing is to research and gather all the information regarding tenant rights in your city or state. This may include the time period you just need to give to vacate the place, the process of incentivizing them, or having them instructed about potential buyers' visits.
- If you sold your home with tenants in it, don’t forget to give the details of new agreements with the new homeowner.
- You might have to look at the other side of the image. Having tenants in a house is an excellent captivating point for potential buyers. Buyers with potential earning resources in mind wouldn't give a second thought to buying such a property that already has tenants in it.
Let’s Wrap It Up!
Obviously, some ropes are attached to selling your house with tenants in it. But once you understand them, selling your house with renters becomes easy. Adopting the amicable communication channel, understanding the lease and agreement clauses, and getting acquainted with the laws and regulations, will help you secure a mutually beneficial deal.
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