Inheriting a house is challenging enough, but what do you do when it's a rental property with tenants? Many people ask, "Can I sell it? How do I get in touch with the tenants?" Let’s break it down step by step to answer these important questions.

What Should I Do Before Inheriting a Rental Property?

If you think you might inherit a rental property in the future, it’s important to be proactive. First, talk with your loved one about the details of their rental properties. Find out where the leases are kept, because if there aren’t any leases, evicting tenants (if necessary) could become more difficult. Identify the bank accounts holding the security deposits, and make sure you have contact information for all tenants. If a property manager is involved, get their details as well. This way, when the time comes, you’ll have everything you need to step in smoothly.

What Should I Do After Inheriting a Rental Property?

Once you've inherited a rental property, your first goal should be to keep the tenants paying rent. It’s crucial because, from experience, once tenants stop paying, it’s hard to get them back on track. A quick tip? Hire a good property manager right away, especially if being a landlord isn’t something you want or are ready for. A property manager can handle maintenance requests, rent collection, and tenant concerns, making your life much easier. You might even decide to keep the property as a source of extra cash flow rather than selling it right away. Trying to manage everything yourself—especially if you don’t live near the property—can lead to unnecessary headaches and complications.

Can I Sell a Rental Property with Tenants?

Selling a rental property with tenants is definitely possible, but there are a few things to consider. Option 1: You could offer to sell the property to the tenant if they qualify for bank financing. This can be a relatively easy process if the home is in good condition. Option 2: If they don’t qualify for a traditional loan, you could explore owner financing. In this scenario, the tenant would make a down payment, and you’d receive monthly payments directly from them, without needing to handle repairs. But keep in mind, this might require more effort on your part and isn’t always the best fit.

If you want to sell the property with the tenant still in place (perhaps because they have a lease), you might face a smaller pool of potential buyers, often investors. They’ll usually calculate what they’re willing to pay based on the current rent being collected, which could result in a lower offer than if the property were vacant. This process might also take longer compared to selling an empty house.

What If the Tenant Isn’t Under Lease?

If the tenant is not in a lease, you could give them notice to vacate the property. Offering “cash for keys”—a cash incentive for them to leave the property clean—can speed up this process. Once the tenant vacates, clean and prepare the property for sale. This is typically the best way to maximize your sale price, though it does take time.

Should I Take a Cash Offer?

For many, the idea of selling the property for cash sounds convenient—and it can be! But remember, a cash offer will usually be lower than what you’d get by going through the traditional sales process. That lower price reflects the fact that the cash buyer is taking on the problem for you. Also, watch out for wholesalers. These are people who put your property under contract and then try to sell that contract to someone else. They often use tricky language that can tie up your property and delay the sale. If you’re considering a cash offer, make sure the person is genuinely planning to buy your property and not taking advantage of the situation.

How KC Legacy Properties Can Help

At Kansas City Legacy Properties, we’re here to assist you through every step of the process. If you need a property manager to keep your tenants happy and paying rent while you decide what to do, we can help. If you’re ready to sell, we’ll guide you through the process—whether you want to sell with a tenant in place or after vacating the property. And if you’re considering a cash offer, we’ll make you a fair one and handle the purchase ourselves.

Our goal is to make this process as smooth and stress-free as possible. Reach out to us today at 816-307-7163 to discuss your options.