After dealing with the safe deposit box, I began the process of selling the rental property by informing the tenants of the eventual sale. Since the tenants lived in the rental home for twenty years in good standing, I knew this task would be tough. In earlier calls to the tenants, they repeatedly told me that they wanted to stay in the house. The tenants had raised a family in the home and had many good memories to just pick up and move. So, I dreaded this task of informing the tenants of the sale from the day I was officially appointed executor back in November 2012.

Unfortunate Timing

On a Sunday, in early December 2012, I drove down to the rental home to meet the tenants. As I approached the residence, I felt dread. The awful feeling was due to the fact that I was informing the tenants of their possible displacement in the Christmas season. Unfortunately, my approval as executor happened in mid-November. This delayed the process of selling the rental property and other tasks as mentioned in the article You’re Approved as Executor | The First Steps. So, I had to hasten the sale process that led to this unfortunate timing.

Informing the Tenants

When I arrived at the residence, I looked over the front of the property from my car. For early December, with dormant landscaping, the property looked good. After a few minutes sitting in my car checking the property, I walked up the stairs to meet the tenants. The tenants were gracious as we engaged in some small talk about the memories we had of the home.

Eventually, we got down to business and I had to inform them of the sale. Immediately, I said, “Unfortunately, I have to sell the house and distribute the proceeds among twenty beneficiaries.” As I looked at the tenants, they had a look of shock on their faces. The tenants anticipated that the house would be left to a beneficiary and the tenancy would continue. After that reaction, I knew I ruined their Christmas. Although shocked, they were still gracious as I asked about the condition of the house. The husband listed off some problems that indicated the house needed a new heating system and some structural repairs. As the meeting ended, I made the following promises to the tenants:

• After a couple of realtors visit the home to provide estimates, nothing more will happen until after the holidays.
• You can continue to live in the house until you move to a residence of your liking.
  

The two promises put them at ease even though I informed them that I needed to obtain estimates, immediately. The tenants understood and were willing to cooperate with the realtors. With the meeting concluded, I walked to my car and drove home with a lousy feeling.

The Plan to Sell the Rental Property

While I was driving home, I thought about a plan to sell the rental property. Selling the rental property was unavoidable. However, I could sell the property to anyone, including the tenants at a fair price determined by the estate. The selling price needed approval of all the beneficiaries through an assent form, but that was only a probate formality. So, I thought of the following plan:

• Have the realtor schedule an appointment with the tenants to get an estimate on the property right away.
• The tenants, if they wish, will get first crack at buying the house at a price determined by the estate.
• If the tenants can’t buy the home, then they will stay in the house until they find another residence that they approve of with the help of the realtor.
• The sale of the rental property will proceed only after the tenants move to a new residence of their liking.

The Tenants are the Top Priority

After I wrote down the plan, I felt better since the tenants would have a chance to buy the home. Even if they couldn’t buy the home, they’ll have a smooth transition to a new residence with the help of a realtor. The day after the visit I discussed my plan with the realtor I hired. We both agreed to the plan and made the tenants top priority in the sale of the rental property.

Can you think of other options I could have used to keep the tenants in the rental home? I am anxious to hear your opinions. Don’t be shy. Share your opinions or comments in the comment box below.