If you're a landlord who's decided that it's time to cash in on one of your rental properties, then you'll likely face a conundrum: how to sell a house with tenants still living in it.

Opening the home to various real estate agents and prospective buyers is undoubtedly an inconvenience to tenants, especially since they're not related to this real estate transaction and are now likely facing the stress of moving out soon.

As opposed to owner-occupants, tenants have nothing to gain from the sale and can sometimes be reluctant to let showings happen. Nevertheless, it is important to cooperate with tenants and keep them informed about showings. After all, without consent for showings, selling rental property with tenants becomes difficult. How can your listing agent and other buyers' agents overcome this obstacle?

You can find the solution in four key steps:

• Establish clear communication with the tenants
• Make the most of every opportunity
• Adhere to established boundaries and respect the tenant at all times
• Maintain a good tenant/landlord relationship
• Take advantage of technology when the unit is unavailable for showing

The Easiest Way: Wait for the Lease to Expire

Of course, the easiest way for you to open up the property for home showings and an easy sale is for you to wait until the lease expires. Once the lease has expired and the tenant has moved out, you're free to do with the property what you wish.

Be aware that different states have different requirements for landlords who do not intend to renew their lease with their tenants. It's important to follow all laws when ending an agreement with a tenant. Failure to comply with laws, including notice requirements, could result in legal and financial repercussions and slow the process of getting the tenant out of the house. Consult with your real estate attorney months before the lease is due to expire. Your real estate attorney can help you decide whether this is the right time to end the lease, and, if so, what the best way is to get that done.

As an example, when terminating a lease in Tennesse:

• For a month-to-month lease, the landlord can terminate the lease for any reason with 30 days' written notice.
• For a fixed-term lease, the lease will automatically terminate on the listed end date unless arrangements are made to renew. To renew, notice must be given no less than 30 days in advance and no more than 60 days—it should be at least equal to the interval between rent payments.

Landlords in Tennessee are not obligated to give notice of lease renewals or non-renewals (unless the lease agreement states otherwise). However, it's common courtesy to remind tenants of upcoming lease termination and renewal options at least 30 days in advance. This is not only the best way to minimize tenant turnover and improve tenant retention, but also best practice for maintaining positive tenant relationships through the end of the sale.

Some fixed-term lease agreements are written to automatically renew and convert to a month-to-month tenancy at the end of the term. Check your lease documents and arrange to renegotiate if this clause is present.

Can a Landlord Break a Fixed-Term Lease?

No. If you're selling a property with tenants on a fixed-term lease, you're legally forbidden from kicking them out early unless they violate the lease agreement. This can cause a multitude of headaches for you, such as limiting your pool of potential buyers to those willing to patiently wait several months to move in.

While landlords are forbidden from breaking a fixed-term lease without eviction-worthy reasons, tenants are legally allowed to break their lease for any reason—albeit usually with a penalty outlined in the agreement. If you talk to your tenants, explain the situation, and offer them money to move out voluntarily, you may be able to come to a mutually satisfactory agreement that simplifies your sale.

How to Sell a Tenant-Occupied Property

While selling a vacant property after the tenant has moved out is ideal, it's not always an option. However, you can still sell your rental property with tenants in it. It just requires plenty of open communication, cooperation, and respect for your tenant's rights.

Get to Know the Tenant's Schedule

It is a good practice to sit down with your tenants and be completely open about how you intend to sell your property by the end of their lease. Communication is vital to work out acceptable showing times and conditions that respect your tenant's work schedule and family life.

You will have to give your tenant plenty of advanced notice for each showing. In Tennessee, for example, landlords are required to give 24 hours' notice to enter the unit and show the premises. Landlords only have this right of access within the final 30 days of the tenant's lease, and only if this right of access is listed in the lease agreement.

Be respectful of your tenant's boundaries to keep them cooperative during this time.

Expect Limited Showing Times

When selling a house with tenants, prepare yourself for fewer showing opportunities. Your listing agent, however, will make the most of the opportunities you do have. One way to maximize time is to schedule multiple showings in the same time slot or back-to-back. Another good practice is instructing other agents to not linger in the property after the showing is completed but to finish the conversation about the house in their car or on the phone.

Common Scheduling Constraints Need to be Respected

Tenants who have small children often prefer showings to happen while their children are awake. They will also usually be hesitant to have people over during naptime or after their children's bedtimes. Parents of older children may prefer showings during school, while tenants with dogs or cats will need to make the proper arrangements to contain their pets during showings.

When you negotiate a clear-cut timeframe where agents and buyers are permitted, there will be little to no conflict regarding consent for showings.

Get Creative With Media

Sometimes, it's impossible to get inside the house due to a discordance between the buyer's schedule and the tenant's schedule. In this case, you can get creative with some alternative showing options.

Making a video walk-through of the property that you can post online is extremely helpful in this situation. Videos can convey the mood and ambiance of the property in a way photos cannot. Showing the prepared video to prospective buyers can keep their interest hooked until they can actually get in to see the property itself.

Selling a House With Tenants As a Rental Property

While a vacant property will appeal to the most buyers, including those who plan to move into the property themselves, you can also change tactics and market primarily to other real estate investors.

Having a proven reliable tenant already in place can be an attractive benefit to buyers who want to purchase an income property. The buyer won't have to waste any time advertising, screening tenants, or even negotiating a lease; everything is already in place. You can capitalize on this to strengthen your negotiating position and turn a potential issue into a selling point.

You'll want to tailor your approach to listing your property if you go this route, marketing your rental property to other investors instead of the general homebuyer pool. It's also imperative to keep your good tenant-landlord relationship if you want the transfer from one landlord to another to go smoothly.

An Alternate Route: Selling Your Rental Property to Your Tenants

While you're preparing to list your property for sale, don't accidentally skip over your most potentially qualified buyer: your tenant. Your tenant already chose to live here once and already knows the property, so if they're interested in purchasing, you could easily skip quite a bit of the hassle of the listing and selling process. When you inform your tenant about your decision to sell, be sure to offer them the opportunity to buy.

Where There's a Will, There's a Way

The right Nashville real estate agent knows what it takes to sell your home, even when it is tenant-occupied. By using communication skills to cooperate with your tenant and an arsenal of marketing strategies, you will be able to get buyers into your rental unit so you can get it sold.