How to Sell a Rental Property With Tenants: Your 3 Options
It’s no secret that selling a rental property with tenants is more difficult than selling one without. But in most circumstances, getting all of your tenants out either isn’t possible or takes longer than you’re willing to wait. Here are three options you have to consider.
Wait for Your Tenants’ Lease to End
If your tenants pay rent on a month-to-month basis, you could give them notice and the appropriate amount of time needed to vacate. However, this is more difficult if your tenants have fixed-term leases because you’ll have to wait until their lease expires, which could be months.
Also, it’s best practice to give your tenants 3-6 months notice before they need to move out regardless of what their rental terms are. This gives them a sufficient amount of time to find new housing arrangements, pack their belongings, and vacate. So either way, this is an option that will push your selling timeline back.
Convince Your Tenants to Move Out
Tenants with a fixed-term lease are entitled to continue living at your rental property for the full lease term. If the end date of their lease is later than your sale date, your buyer must take over that lease. However, if both you and your tenant agree to dissolve their lease, you can both decide on a flexible move out date.
This option isn’t very common, as most tenants aren’t thrilled about having to leave and find new housing arrangements prior to their lease expiration.
Sell Your Rental Property to a Buyer Who’ll Honor Your Tenants’ Leases
The best way to sell your rental property with tenants is to find a buyer that’s willing to take over your tenants’ current lease agreements. This way, your tenants won’t be required to vacate and you don’t have to wait for them.
However, it can be difficult to find a buyer who’s willing to take on that responsibility — especially when it’s on a contract that you established, not them. Your best best option is to sell to a real estate investor (like us!) who has the time, capital, and experience needed to handle the situation and help the sale go through with minimal disruption.
Sell Your Rental Property For Cash, Fast! Contact Us Today.
Whether you’re tired of dealing with bad tenants or you’re just ready to move on to the next adventure, Hometown Development can take your rental property off your hands in way that’s quick, convenient, and lucrative for you. We’ll provide you with a free, no-obligation cash offer that’s aligned with current market rates. Contact us today to learn more.