How to Sell a House with Tenants Not Paying Rent in Garland, TX
Being a landlord in Garland wasn’t supposed to be complicated. However, your tenants decided rent was more of a suggestion than an obligation. Now you’re funding their free stay while your bills keep piling up.
Selling sounds like the obvious move, except there’s still someone living in your property who won’t leave and won’t pay. In this blog, we’ll figure out how to sell a house with tenants not paying rent in Garland, TX!
Your Rights as a Landlord with Non-Paying Tenants
Texas law is really clear about non-paying tenants: you own the place, so you’ve got options. You can start the eviction process and refuse to renew their lease when it’s up. You can also sell the tenant-occupied property while they’re still camped out in your living room.
What you can’t do as the owner is get creative with revenge tactics like changing the locks or shutting off utilities without agreement. That’s when you become the bad guy legally and undermine their rights.
We know following the rules feels like rewarding bad behavior. But the second you try to force them out of your house without going through the courts, they can change the story and sue you. You’ll be the one in trouble even though they haven’t paid in months. Just stick to the legal process and you’ll actually get what you want faster.
Texas Property Laws and Tenant Rights in Garland
Texas doesn’t make landlords suffer as much as California or New York, which is helpful when you’re trying to deal with problem tenants. If they’ve got a lease that hasn’t expired, that existing lease will transfer to whoever buys your rental property. Month-to-month tenants are easier to deal with since you can end things with proper notice. However, a fixed lease means you’re stuck until it runs out or you go through eviction.
You’ve still got to give them 24 hours before showing up with buyers, even if they haven’t paid since summer. Yeah, it’s annoying. But a Texas eviction is quite fast once you get it started. It usually wraps up in three weeks if nobody fights it.
Just don’t try to skip steps or force them out yourself. That’s how you end up spending way more time and money in court than you would’ve just doing it right the first time.
The Eviction Process in Garland, Texas
Texas evictions are faster compared to other states, but you’ve got to follow every step, or else the judge will kick your case out, and you’ll start from scratch.
- Notice to Vacate: This is a three-day written notice for non-payment. Hand it to them, mail it, or stick it on their door. Just keep proof you did it.
- File the Lawsuit: Head to the Justice of the Peace court after those three days. Pay the filing fee, and the constable serves them the papers. The court date usually comes within a week or two.
- Court Hearing: Bring your lease, proof they didn’t pay, and your notice. Sometimes they don’t show up, and you win by default. If they fight it and you’ve got solid paperwork, you’ll still win.
- Judgment and Waiting Period: The judge will give them five days to leave or appeal. Most can’t afford to appeal, so they either bounce or stay, hoping you’ll forget about them.
- Writ of Possession: If they are still there after five days, file for the writ, and the constable will come back to physically remove them. This part can take up to three weeks, but then they’re finally gone.
How to Sell a House with Non-Paying Tenants in Garland, TX
Selling with tenants who won’t pay is weird, but it always happens in Garland. You just need to know which buyers actually want a rental property like this and plan your move.
Step 1: Review Your Lease Agreement
Get that lease and read through the whole thing, even the boring parts. Look for when it ends and whether there’s any clause about early lease termination if you sell.
Some leases have these escape hatches for ownership changes. Finding one right now would save you so much hassle. Most leases don’t have them, but you won’t know until you actually check instead of guessing.
Step 2: Document All Communication and Rent Defaults
Start saving every text, every email, every voicemail where they promised they’d definitely pay you next week. Write down the dates they missed payments and whatever creative excuses they gave you this time.
You need this paper trail for court. It also proves to buyers that you’ve been handling things like a professional, even though your tenant clearly hasn’t been.
Step 3: Send Proper Legal Notices
This step can make or break your whole eviction. Your notice has to follow Texas law exactly. It needs to have the correct timeframe and proper wording. It should also be delivered the right way.
Sure, templates are floating around online, but spending a hundred bucks on a lawyer to draft it properly is better than having to restart the entire process.
Step 4: Evaluate Your Selling Options
Next up, identify which path makes the most sense for your situation. Each option has its own headaches and benefits. You need to think about how quickly you need to be done with this and how much stress you can handle.
Option 1: Complete the Eviction Before Selling
You push through the whole eviction process and actually get them out of there. Then you clean up whatever disaster they left behind and list it like a normal house.
This route takes the longest, and you’re stuck paying the mortgage while everything plays out, but you’ll probably get more money from the sale. Regular homebuyers can actually walk through without some resentful tenant glaring at them. This makes a huge difference in offers.
Option 2: Sell the Tenant-Occupied Property As-Is
List it right now with the problem tenants still living there and everything. Investors buy these properties all the time because they’ve dealt with nightmare tenants before and they know the drill.
You’ll take a hit on the price for sure, but you’re also washing your hands of the entire mess immediately. Someone else will become responsible for the eviction drama, and you get to move on with your life instead of spending months in court.
Option 3: Wait Until the Lease Expires
The lease ends in a couple of months anyway, so maybe you just ride it out and skip the eviction problem entirely. You can start hunting for buyers now and give them a heads-up about when the place will be empty.
This works great if you’ve got some patience left and really don’t want to deal with lawyers and court dates. The gamble here is whether your tenant will actually leave when they’re supposed to or decide to overstay their welcome even longer.
Option 4: Offer Incentives for Tenants to Leave Voluntarily
Paying them to leave sounds completely backward when they already owe you a pile of money, but hear us out. Sometimes, handing them a thousand bucks or wiping out the back rent gets them gone faster and cheaper than fighting through eviction.
You offer them cash or debt forgiveness if they’re out by a certain date and don’t destroy the place on their way out. Get everything in writing and only hand over the money after they’ve actually moved out and given you the keys. Feels weird as hell, but it might be your fastest escape route.
Step 5: Prepare Your Property for Sale
You can still make the place look decent, even with difficult tenants squatting there. If they’re being somewhat reasonable about the situation, ask them to keep things tidy for showings. Make the deal better by covering some moving expenses.
If they’re being total jerks about everything, just focus your marketing on investors who’ve seen way worse. Those buyers who don’t care about some clutter or attitude problems. Take photos whenever the place looks halfway presentable and roll with whatever you can get.
Step 6: Disclose the Tenant Situation to Buyers
Don’t even think about hiding the tenant issues from potential buyers. They’re going to find out during inspections or title work anyway. By then, you’ll look shady and your deal will completely fall apart.
Just tell them upfront how much rent is owed and where you are in the eviction timeline. You should also tell them what the lease actually says about everything.
Investors actually like the honesty in property disclosure because it helps them run their numbers accurately and make you a real offer. Try to surprise them with all these issues, and they’ll walk away before you can blink.
Selling a house with non-paying tenants is challenging but possible. Know your rights and follow the proper legal eviction process if needed. You can also sell your home for cash in Garland and nearby cities for a quick, hassle-free sale.
Different Types of Buyers for Your Rental Property
Not every buyer is going to bail when they hear about your tenant mess. Some buyers actually like it.
Traditional Homebuyers
Regular homebuyers want nothing to do with your situation. They’re looking for a place to move their family into, not a legal battle with strangers who won’t leave.
These people want vacant houses they can tour without awkward run-ins, and they definitely don’t want to inherit your tenant drama. You need to finish the eviction first if you’re going after this group; otherwise, they’ll just skip your listing completely.
Real Estate Investors
Investors are your best shot right now. They buy problem properties all day long, and they’ve handled way worse tenant situations than yours. Some investors actually hunt for these deals because they know you’ll take less money just to escape the problems.
They’ll buy the place with your tenants still there and handle the eviction themselves after closing. Yeah, their offers will be lower than what regular buyers would pay, but they’re also giving you a guaranteed out without dragging through months of court.
Your Existing Tenant as a Potential Buyer
Sounds crazy, but sometimes the tenant who hasn’t paid in months might actually want to buy the place. Maybe they’re just having temporary money issues, but they could qualify for a mortgage. Maybe they love the property and don’t really want to move.
It’s definitely a long shot since they’ve already proven they suck at monthly payments. However, if they’re serious and can get financing, the problem will be solved without finding outside buyers.
Challenges of Selling a Property with Non-Paying Tenants
Selling with problem tenants is way harder than selling a vacant property. These challenges can seriously impact your property sale price and timeline if you’re not ready for them.
Impact on Property Value
Your property is worth less with non-paying tenants in it, straight up. Buyers see the tenant situation and start mentally calculating all the headaches they’re buying, then they slash their offer to make up for it.
Traditional buyers might knock 10% to 20% off the market value. Meanwhile, investors could go even lower depending on how much rent is owed and how ugly the eviction might get.
Property Showings and Tenant Cooperation Challenges
Good luck scheduling showings when your tenant despises you for evicting them. They’ll skip appointments, leave the place trashed, or just lurk around during tours, making everyone uncomfortable. Some tenants will actively trash-talk the property to potential buyers.
You need 24 hours’ notice to enter Texas, so you can’t just swing by with buyers whenever you want. Every single showing becomes this whole ordeal.
Pricing Your Property
Figuring out what to ask for is tough. Too high, and nobody will bite because they’re calculating eviction costs. Too low and you’ll be giving away money you could’ve gotten.
Most landlords in your shoes price 15% to 30% below market value to attract investors. But the exact discount depends on how problematic your specific situation is.
Limited Pool of Buyers
You just removed like 90% of potential buyers. Regular buyers won’t even look at your listing once they see an occupied property with tenant issues.
You’re basically stuck marketing to investors and maybe a couple brave souls who think they can handle it. Fewer buyers mean worse offers and way longer on the market.
Time Constraints and Legal Complications
Everything drags on forever when you’re juggling eviction and a sale at the same time. Court dates get pushed back, tenants file appeals, and buyers get nervous waiting around. Your eviction timeline and your closing timeline rarely sync up nicely.
If your eviction for the tenant-occupied property gets tossed because of some paperwork mistake, your buyer might bail, and you’re starting over. Most buyers want to know exactly when they can take possession. You can’t always give them a solid answer when tenants are fighting back.
Selling a property with non-paying tenants is tough due to legal issues and lower buyer interest. At House Buying Heros, we buy houses in Dallas and other areas, offering a fast, hassle-free solution.
Sell a House with Tenants Not Paying Rent to Cash Buyers
Cash home buyers are the emergency exit for landlords who are completely over dealing with tenant drama. These companies buy houses fast, and they don’t care about your tenant situation. They’ve seen it all before, and nothing scares them off.
Why cash buyers work great for properties with problem tenants:
- They buy as-is with tenants still there. Your non-paying tenant will become their problem the second you close with a cash offer. You’re not evicting anyone despite their rights or waiting for the property with the tenant to be vacant as per your agreement with them.
- No showings with angry tenants lurking around. You can skip scheduling appointments while your tenant sabotages every tour or refuses to cooperate.
- Fast closing means less unpaid rent piling up. The owner can close in a week or two instead of waiting months while the tenant continues living rent-free.
- They handle the eviction after closing. Cash buyers have lawyers and property managers who deal with difficult tenants constantly. They know exactly how to get non-paying tenants out without the drama.
- No deal falling through because of tenant issues. Traditional buyers get cold feet when they see eviction paperwork. Cash buyers expect it and factor it into their offer upfront.
- You’re not fixing anything or cleaning up tenant messes. Whatever damage or disaster your tenant left behind won’t be your problem anymore. You can sell a property as is, even with a tenant’s lease.
Sometimes the fastest way out is the smartest way out, especially when your tenant shows no signs of leaving or paying up. Contact Us at House Buying Heros today to take the next step.
Key Takeaways: How to Sell a House with Tenants Not Paying Rent in Garland, TX
Dealing with non-paying tenants while trying to sell sucks, no matter how you slice it. But sitting around hoping they’ll magically start paying or leave on their own is just burning money every single month. You’ve got options: evict them first, sell with them still there, wait it out, or pay them to bounce. You need to choose whatever gets you to the finish line based on how fast you need out and how much fight you’ve got left in you. If you’re completely done with this tenant’s problems and just want to move on with your life, House Buying Heros buys properties in Garland with problem tenants all the time. We take the property with tenants as-is and handle the eviction ourselves after closing. Call us at (855) 563-4376 and let’s get you out of this mess!
