Renting out house while still under listing contract

**gsm** · 01-09-2008, 01:56 PM

Hi, Our home has been on the market for 3 months with no offers, we have had 2 price reductions of 4% each and the showings have dropped off completely.

Rather then lower the price again, we have decided to keep the house as an investment property and have found a tenant who is willing to sign a 30-60 month lease.

We had signed a 6 month listing contract (exclusive right to sell) with the broker and have 3 months left. If we enter into a lease now with a tenant that we found, what is our obligation to the broker? The only reference to leases in the listing contract is the following: "Seller will not enter into or renew any leases during the term of this Contract without first giving notice to Broker."

The agent has said that management does not always release listings. We are not actually asking to be released from the terms of the contract as we are not planning on selling. Can the broker prevent us from renting out our house?

I would appreciate any insight that you may have.

**Codythebest** · 01-09-2008, 04:31 PM

Give notice to the broker that you rent and you 're done, as per your post. Does your listing agreement states that you cannot rent?
Keep it under contract for the next 3 months, if you sell, you're good and if not, it's rented...

**gsm** · 01-09-2008, 05:25 PM

Originally Posted by Codythebest

Give notice to the broker that you rent and you 're done, as per your post. Does your listing agreement states that you cannot rent?
Keep it under contract for the next 3 months, if you sell, you're good and if not, it's rented...

Thanks, no the agreement does not say that I cannot rent. It only says that I must give a copy of any leases to the broker before signing the listing agreement or notify the broker before entering into any new leases.

But what if I do not want to sell. If this tenant signs a 30-60 month lease and moves in Feb 1st, what would be the point of leaving it on the market for 3 months?

**Jim** · 01-09-2008, 10:44 PM

Sounds like you have made your decision to go with the lease. Personally, I would keep it simple and cancel the listing if you are going to rent it out.

**Mike Taylor** · 01-10-2008, 02:51 AM

Just explain to your broker that you are no longer interested in selling it and when you do reconsider you will call him/her. They should let you out of the contract.

**Codythebest** · 01-10-2008, 05:16 AM

Beside, if you have a hard time on this with your broker, it will be difficult to sell anyway, because you may accept only a full price, and etc...

**Greg** · 01-10-2008, 05:32 AM

Give a copy of the lease to your broker, rent the house out and get on with your life. Problem solved.

**gsm** · 01-10-2008, 06:07 AM

Thanks for all of the advice. That is what I thought, but I was confused about the broker's comments about "letting us out of the contract".

I think it may be a case where she either just doesn't understand that the contract does not include renting or she is trying to discourage me from going this route.

**carrot** · 01-10-2008, 09:41 AM

I agree with Gregg. Rent it and move on. It's a common thing happening everywhere right now. It's taking so long to sell people are renting or if in an area where they can use a as vacation rentals they are doing that here in Florida and taking house off the market. Your home could now be a Villa Rental. Good Luck!

**Macye Kirkpatrick** · 01-15-2008, 06:05 AM

I would take it off the market and rent it till you feel the market is ready for it to sell again. You sound like you have a good tennant and can use it as an investment income. Sometimes taking it off the market and waiting and putting it back on can actually cause new interest.