How to Sell Rental Property With or Without Tenants
Jan 15, 2021 | Hometown Development
If you have a rental property to get off your hands, it can be complicated to sell quickly. The sale process can seem even more complex if you still have tenants occupying some or all of the units on the property. While selling a rental property without tenants is more straightforward, both are possible with the right buyer. Let’s talk about how to sell rental property with or with or without tenants — without the hassle.
How to Sell Rental Property Without Tenants
If you need to sell rental property that’s vacant, the process isn’t too different from a typical property sale. You’ll go through the same steps of preparing the property for sale and listing it on the market, but you’ll be looking for the right buyer willing to take on an investment property — and all of the upkeep it requires. Decidedly easier than selling with tenants, prepare the property for sale, and find the right buyer looking for an investment property
In these situations, real estate investment firms make an ideal buyer for a rental property because they are actively looking for real estate investments, have the time and energy to devote to a new project, and have the capital available immediately to make you a fair offer and sell on your timeline. If you need to sell a rental property without tenants, sell to a real estate investor for a fast, hassle-free sale.
How to Sell Rental Property With Tenants
It’s no secret that it can be more difficult to sell a rental property with tenants. This is mostly because it takes just the right buyer for the sale. You also have to consider your tenants’ rights and try to make the sale easier for all involved parties.
To sell a rental property with tenants, you’ll likely need to vacate the property before you can sell, unless you can find a buyer willing to take over the current leases. Let’s talk through a few of the options available to you.
Wait for Tenants’ Leases to Expire
If your tenants rent month-to-month, you could simply give them notice and the appropriate amount of time to vacate. Or, wait until the current lease term is up for the last tenant. However, if you need to sell now, you may not have time to wait 6 months or more for your tenants to move on their own. In that case, it’s best to be up-front with your tenants about your plans to sell, and hope that they will move out sooner. Or, you can try to convince them to move.
Convince Tenants to Move
Tenants with a fixed-term lease are entitled to fulfill the lease term and continue living at the property. If the end date of the lease is beyond the sale date, the buyer must take over the lease. However, if both the property owner and the tenant mutually agree to dissolve the lease, both parties can decide on a flexible end date.
The best way to go about this is to have an honest discussion with your tenants about selling the property. It’s important to actively communicate with your tenants throughout the process. This way they’ll feel involved in the process and be more likely to participate in making the sale a success for everyone.
Persuading your tenants to move cannot involve threatening behavior or a blanket refusal to maintain the property. Their rights clearly state they may continue to live on the property until the end of their lease, so the ball is in their court, so to speak. You may try to sweeten the deal for tenants to move early, such as offering to pay moving expenses or the security deposit for their next apartment, but ultimately it is their decision.
Sell Rental Property to Buyer Who Will Honor Tenants’ Leases
The final option is to find a buyer willing to take over the current leases of your tenants. Under the new owner, tenants will maintain their current lease agreements. Once the lease term has expired, it’s up to the new owner whether they want to renew the lease with the tenant or not.
This option suits tenants because they won’t be required to vacate, but can make it more difficult to find a buyer willing to take on the extra responsibility. If they want to schedule renovations, they may have to wait until the tenants move on their own.
Sell Rental Property to a Real Estate Investor
If you need to sell rental property with tenants, consider selling to a real estate investor. A real estate investor has the time and capital to sell according to your timeline and will work to find the best solution for you and your tenants. They care about your situation as well as your tenants’ rights and will help the sale go through with minimal disruption.
When you sell rental property to a real estate investor, you don’t need to worry about making repairs and updates to the property before selling. You don’t have to work with a Realtor, or host open houses. You don’t have to wait weeks or months to find the right buyer for your property. Real estate investors can help you sell rental property fast for cash in a hassle-free sale that works for you and your tenants.
Need to sell your rental property, but not sure what it means for the current occupants? Talk to Hometown Development. We can help make selling your property easier for you and your tenants.