You've been pleased with your investment property's outcomes, and now it's time to sell it. Learn why selling a rental property isn't all that straightforward.
Selling a rental property can get a bit complicated. If you find yourself in the unique position of having to sell a rental property you are probably aware that there is a lot to think about.
Not the least of which is the tenants and the paperwork. It can get very overwhelming. However, if you have a guide that tells you what to do and when to do it things can become easier.
Here is a look at the key things you need to know when you are about to sell a rental property.
1. Tenants or No Tenants
If your rental property has no current tenants then everything is very straightforward. All you have to do is list the property and then wait for people to start making offers.
If you have tenants on the property then things are not as clean cut. If your tenants pay rent on a monthly basis then you will need to give them notice. It is best ask that they remove their belongings by the last day of the month.
If they fail to move out in time then you can start an eviction process. However, you should be aware as a landlord that the lease agreement should have stipulated that you can terminate it if you desire to sell. Otherwise, your tenants will have legal rights.
2. No Clause in Your Lease
If you had no clause in your lease about selling then you may have to wait out the lease. The upside is that you will still be able to collect rent while you wait.
The downside is that if you have someone interested in buying right away and the lease ends months down the road you are at a disadvantage. Another option you can try is to pay your tenant or tenants to leave.
Whether this approach is feasible or not is all dependent on how deep your pocket is and how much profit you stand to make from selling the property.
3. Selling a Rental Property with an Active Lease
You can sell the property as it is with all active leases present. You just have to find a buyer who is willing to honor the current lease agreements.
In that case, everything will go very smoothly. The problem with this kind of transaction is that it can be very hard to find these types of buyers.
This type of buyer would need to have no need to move in, write a new lease, or renovate the property immediately. You may have to do a bit of digging and negotiating to find this dream buyer.
Ready to Sell
Now that you know the ins of out of selling a rental property with or without tenants you can now assess your own situation to decide what you need to do.
The key is to examine your lease with your tenants. This will determine whether you can sell right away, if you have to wait or if you will have to find a buyer that suits your needs.
If you would like expert information about real estate, please be sure to check out the owners section of our website.