At some point, landlords may choose to sell their rental properties for different reasons. One major reason is relocation. This means landlords may sell their rental properties because they do not want to be out of State landlords, as they have to leave the locations where their rental properties are located for other locations.
Another reason why landlords may choose to sell their rental properties is that they are not interested in keeping rental properties they have inherited because they are not prepared to be landlords.
In addition, another reason might be that landlords own rental properties in hot real estate markets and they want to liquidate their investments to take advantage of the markets; or they are just tired of being landlords and want to retire from landlord’s responsibilities. Irrespective of any of these aforementioned reasons, selling rental properties involve concerted efforts because these rental properties have tenants occupying them.
In some cases, landlords wait for tenants to vacate their rental properties before they sell; and thereby risk mortgage payment and other expenses out of pocket, if the properties do not sell instantly. In other cases, landlords sell their rental properties while tenants are still occupying these properties.
Either of these choices requires that landlords maintain good relationships with their tenants, even right before they start their occupancies. This is because selling renter-occupied properties require coordination with tenants, so as to have hassle-free sale.
Having said this, landlords may still experience difficult situations with their tenants when they want to sell, in spite of having very good relationships with them. This is because tenants, particularly families, tend to see the property as their home, even though they do not own it. It’s essential to be cognizant of the egotism and other emotional ties tenants may have with rental properties. Principally, tenants worry about two things- We will have to move out of our home and we will have to open our home to strangers, for showings.
As a landlord, what can you do in this situation? To make the sale of your renter-occupied home go hiccup-free, communicate with your tenants, so as to work together with them. You can do this by empathizing with them. If possible, you can have face-to-face conversation with your tenants, well in advance, to explain your plans to sell the property. If you personalize the experience with your tenants, they will feel included in your decision and this may motivate them to participate in the sale process.
Furthermore, it is extremely significant for landlords to be conversant with the tenant’s and landlord’s obligations. For example, under a fixed-term lease, tenants are entitled to live in your property for the period covered by the lease contract they signed with you. If you decide to sell the property before the expiration of this lease, the new buyer of your property will have to agree to take over the lease with your tenant. Also, it is the obligation of the tenant to open rental property that they are occupying, for showings/open house.
There are various ways to sell a rental property. For a real estate investment company that will buy your rental property fast, in any condition, and for cash, contact us now by calling/texting (240) 449-1770 or filling in this simple form to see if we can help.
This blog is only the purpose of enlightening the readers and is not meant to be used for tax, real estate, financial, insurance, legal, or investment advice. Kevalla Investments, LLC encourages you to contact a professional regarding your own circumstance. Please confer with your advisor when making financial or legal decisions.