Short answer
Selling with tenants in place can attract investors and keeps rent coming until closing, but shrinks your buyer pool and can limit showings. A vacant house appeals to buyers who will live there and is easier to show, but you lose rent and the eviction or buyout may take time. Compare net proceeds both ways.
The case for selling occupied
You keep collecting rent until closing. You avoid the cost and time of removing a tenant. Investors who want a rental can buy without waiting for a vacancy, and they may value a lease with a reliable tenant.
The limit is the buyer pool. Buyers who want to live in the house cannot move in until the lease ends, and showings require the tenant's cooperation. Lenders and appraisers may also treat occupied houses differently, which is one reason cash buyers are often used.
Ask a local agent or investor what discount they would apply for the tenant. Their answer tells you how much the lease helps or hurts.
The case for selling vacant
A vacant house is easy to show and clean, and it appeals to owner-occupants and investors alike. You control access and timing. If the house needs work, vacancy lets a buyer or you start it right away.
The cost is the path to vacancy. You cannot force a tenant out yourself. You need notice, and if they stay, court. In Philadelphia, landlords must also complete the Eviction Diversion Program step first. A voluntary move-out agreement is another option.
Compare in dollars
Build two simple net sheets. For the occupied sale, use the likely price after a buyer discounts for the tenant. For the vacant sale, use a higher price, then subtract lost rent, eviction or buyout costs, carrying costs and repairs, and the time until it can be listed. Subtract commission if you list.
Neither side is guaranteed. A strong tenant with a long lease can be an asset. A tenant who is behind or a lease that restricts showings can be a drag.
Add a time factor. Every extra month of ownership costs taxes, insurance and utilities. Put a number on a month, then multiply it by the time each route needs.
Paperwork either way
Pennsylvania's Seller Disclosure Law applies to the sale of one-to-four-unit homes. For houses built before 1978, the federal lead disclosure rule applies too. In Philadelphia, the rental license is not transferable, so a buyer who wants to rent must apply for a new one, and rental properties built before March 1978 require lead certification.
Gather leases, rent ledgers and deposit records either way.
Where a cash buyer fits
If you would rather not wait out a tenant, Kaizen Home Buyers buys as-is, makes a cash offer within 24 hours and charges no agent commission. Ask us whether we can take a specific occupied house. Listing a clean, vacant house with an agent may bring a higher price if you have the time. Call 267-329-0084 to compare.
Honesty about the lease and the tenant's payment history matters in either case. A buyer who finds a surprise after signing will want a reduction or a way out.