Pros & Cons of Selling a Tenant-Occupied Rental Property

Pros & Cons of Selling a Tenant-Occupied Rental Property

Make Rental Upgrades with a Washington Hard Money Loan

Rental properties are an excellent option for real estate investors looking for long-term investment opportunities.

But sometimes, selling a rental becomes a necessity, and an occupied property can create challenges.

What are the pros and cons if you currently have tenants and need to sell?

How to Successfully Sell a Tenant-Occupied Rental

Depending on time restraints and your situation, there are different approaches you can take.

First, review your tenant agreement and state and local laws. Ensure that you and your tenant are both protected as you proceed with selling.

Unoccupied rental investment

Empty properties sell the quickest. So allowing the lease to expire is best. However, if your tenant doesn’t plan or want to leave at the end of the current lease, give them appropriate notice per your lease agreement and as required by law.

Once the tenant leaves, take care of repairs and upgrades and do a deep clean before listing and showing the property.

Occupied rental investment

If you need to sell sooner than the remaining time frame of the lease, create a positive tenant experience and prepare to show the property at its best while occupied

An occupied property is not the ideal scenario. Tenants who are difficult or who leave the property in disarray can turn off prospective buyers. A happy tenant will go a long way toward helping you make the most of the situation. The more flexible they are and willing to keep the rental tidy and available for repairs and viewings, the easier it will be to show and sell.

It’s standard to provide tenants one day’s notice before work on the property, a viewing or showing. Be courteous and recognize that your decision to sell imposes on your renter’s daily routine. The more effort you make to build a relationship with your tenants and acknowledge their needs, the more apt they are to work with you to help sell your property.

If your tenants balk at showing the rental property or refuse to keep it tidy, consider an incentive. Offer gift certificates or a refund of their security deposit if they agree to clean up the property and keep it “show clean.” You may even be able to negotiate an early termination of the lease.

Keep in Mind

Some buyers appreciate an owner-occupied rental since it takes the hassle or concern out of filling units. What seems a disadvantage can sometimes work to your advantage if the right buyer comes along.

Remember that timely, consistent tenant communication is essential. Keeping your tenant informed is courteous and will help you both get through listing and showing your property.

Selling a tenant-occupied rental may seem like an impossibility. But with the right attitude, the right tenant relationship, and the right timing, you can make a successful sale. A little flexibility and planning will help too!

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Our team of trusted lenders at Gregory M Russell knows a lot about real estate investing and rental properties. We have partnered with Washington real estate investors to provide private money loans for three decades. Our hassle-free hard money loans are a great financing option for investment purchases and property upgrades. The approval process is streamlined, based on your available equity rather than your credit or employment history. It makes it easy for you – and for us. So you have money in hand in ten days or less. As a respected Washington hard money lender, we enjoy working with investors to meet their goals without the paperwork or ineffective pace of a conventional lender. Call us at 1-888-477-0444 to learn more. Or fill out our easy online loan request form to get your hard money loan started today. It’s that simple.