I want to sell my rental house that is currently occupied by several roommates. Their lease has about four months to go. Can I market it while still occupied? If yes, what are some of the issues regarding showings?
The existing lease agreement is valid and enforceable until its expiration date and the lease binds the buyer if sold before its expiration.
Unless the lease agreement has a specific clause requiring a buyout or otherwise terminating an existing lease (not often seen), leases go with the property. That is, both the tenant and the new owner must abide by all terms of the lease agreement. When there is significant time left on the existing lease, this can mean that the property will not be of interest to any potential buyer who wants to personally occupy the property.
Generally speaking, trying to market an occupied rental unit is usually not a good idea. There can be potential problems in scheduling showings, despite required advance notification to the tenants. Due to possible problems with access and the fact that the property may not show well when occupied by tenants, it is usually best to not try to sell a single-family property while leased.
The best way to market a rental property that will result in the best price with the least hassle is to wait until it is vacant – either because of lease expiration or having done a lease buyout – and not list it until all necessary and/or desired cleaning, repairing, and/or improving has be fully completed.