Compensation for tenant

[Guava]

I am putting my house on the market and I wanted to get some feed back from investors on how they compensate their tenants for the inconvenience of having the house up for sale.

I have a pretty good tenant and I don't want him to get scared off or move out while the house is on the market or before its sold.

Any info would be greatly appreciated!

[Leftette]

If he is of a nature to be nervous about your selling, then he'll move out and there's nothing you can do. You can however try to sweeten the deal by 1) offering a discount and 2) ensuring the advert mentions the sitting tenant would love to stay on (tell him you're doing this).

[PTILoveYou]

$50-100 a week is reasonable, but only if the tenant makes a big fuss about it.

[Guava]

Thank you Leftette & Gary for your advice.

I will defiantly add the sitting tenant want to stay.

It was suggested to me that I should offer him a deal that when the house sells I will give him some cash like $1000 or something. Do you know anyone who has done this before and do you think its a good idea?

[PTILoveYou]

Well looks like you are pretty generous, and there's nothing wrong with rewarding your tenant for looking after the place especially during the open homes, and working to suit the agent. Good idea indeed.

Myself personally would try to get the same effect without spending that money though. A few sweet words of persuasion can go a long way.

[Leftette]

You're such a tight-arse, Gary.

[PTILoveYou]

You're such a tight-arse, Gary.

Well I have never received a phone call from my tenants (20 of them past and present) seeing how I am and what I have been up to (like you would from a friend who cares), so it's business then.

[artemis]

Due to uncertainty of tenure, most tenants will start looking for another place once they know there's a sale of their home likely. Three weeks notice, then. On the plus side, it is often simpler to sell an empty property.

[Bob Kane]

It was suggested to me that I should offer him a deal that when the house sells I will give him some cash like $1000 or something. Do you know anyone who has done this before and do you think its a good idea?

Why not ask the tenant what he would like as compensation for the hassle of the sale?
He may suggest something very modest - in which case you could easily double it and blow him away and keep him onside.

[revdev]

Why not ask the tenant what he would like as compensation for the hassle of the sale?
He may suggest something very modest - in which case you could easily double it and blow him away and keep him onside.

I'd agree with this.
I did the very same thing quite recently and it amounted to a slab of beer, a couple of bottles of wine and a donation to their power bill. Total cost <$200, everyone happy.

[Nice]

Lot depends on him being on a fixed term lease or not; and how much rent he is paying. I would also seek opinion from the Sales Agent, although they will generally prefer an over generous offer to ensure their process goes as easily as it can !