Wholesaling A House When Tenants Sabotage Showings

How can real estate investors overcome the challenge of tenants sabotaging showings when trying to wholesale properties?

Wholesaling vacant homes has its benefits but so does flipping occupied properties which can offer end buyers instant rental income and yields. Unfortunately, there can be several challenges with this. It can be hard enough showing properties to end buyers when wholesaling a house that is under contract or flipping contracts. It gets even worse when there are difficult tenants.

One of the most common ways that tenants sabotage real estate sales is by holding up showings. So why do they do it, and what can be done about it?

Many tenants do this because they are scared or don’t understand the ramifications of a sale or lack of them. Or they may just seriously crave their privacy, have something illegal going on in the unit, or be angry because they wanted to buy the property themselves.

Understanding the issue is really the best way to resolve it. If you can find out the root problem you are more likely to be able to solve it amicably. This will make everything go more smoothly and avoid flare ups or catastrophes before closing.

As much as you may be frustrated, try to be diplomatic and negotiate. Explain how them making it easier to show the property and cooperating with you will actually be better for them. If they don’t like you it’s the best way to get rid of you fast. If they are concerned about having a roof over their heads explain it won’t change a thing, or could get better for them.

If they had been offered the chance to buy the property (or buy it back) let them know the offer is open, at least for now, and for the right price. Perhaps the next owner will offer them good terms on rent to own as well. Or if they decide they just want out, then help them relocate. Hook them up with a real estate agent to buy another home or rent one, or hook them up in another one of your properties.

If they won’t cooperate and you already own the property, or have a cooperating seller most laws permit the owner or their ‘agent’ to access the property at any reasonable time for inspection or to show with reasonable notice. So they can cooperate willingly or not, but you can still get in and show the property.

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