Are you thinking about selling a rental property but still have tenants occupying the property? Being a landlord is not an easy job, especially when you are planning to sell the property when tenure of renters has not been completed. There are two ways of tackling this predicament. One, you can wait until the lease expires and only sell the property then. Two, sell the property while the tenants and lease are still in place. Let’s take you through these two different options.
Now is the right time to sell because the real estate market is ripe and booming. Property owners, like yourself, have been waiting for this equitable time to cash in and maybe invest in other ventures. Having tenants can be an advantage or disadvantage.
Wait Until Lease Expires
Advantage: You Have Time
- The advantage of waiting for the lease to expire and tenants to move out is that you have more time to clean up and increase the curb appeal from the outside as well as the inside before you put it on the market.
- You also have more time to consider and accept the best offer, without worrying about when the tenants can move out. In other words, you are at ease to wait for the best price as a return for your investment.
Disadvantage: No Rental Income and Shouldering Certain Costs
- When you wait for the tenants to move out or lease contract to end, before listing the property, you will be losing rental income while you’re waiting for the best offered price. You may be using this income to support a child through school, or aging parents to augment their living expenses, or even as your personal savings for future use.
- In relation to losing rental income, you will have to shoulder costs, not just for the intended use of the income but also costs of mortgage (if not fully paid out) and monthly bills, even though they are kept to a minimum.
Most people would prefer the rental property sold as soon as possible with the tenants in place, or as soon as the rent contract expires. Ask the aid of real estate brokers with all-cash offers such as Blue Halo Homes Offers. This way, even before the tenants have moved out, you have already received an offer or better yet, closed a deal at your desired price point. This means less hassle of tenant move outs and stress for you.
Put the Rental Property For Sale While Lease Is Still Ongoing
Advantage: Staging, decor and attractive to investors
- This is less effort on your part to decorate or stage the property, especially if your tenants take good care in decorating the place and keeping it neat and tidy. Buyers will find it more pleasant plus easier to visualize themselves using the space themselves.
- It is attractive to investors looking for property to put in their hard-earned savings. They can also visualize leasing the property or retaining the tenants that are already occupying it.
Disadvantage: Unpredictable attitude of tenants towards moving out
- Depending on the lease agreement and relationship with tenants, they may prove to be difficult in handling moving out. This could make things tricky to wait for the lease to end and still keep the house at “staging” standard and accommodate or participate in open houses.
If you are ready to sell your rental property call Blue Halo Homes. Whether the lease has expired, or tenants are still in place they can give you a fair market offer. Blue Halo Homes makes the selling of real estate easy and stress free by buying as-is. They will handle the move out of tenants, repairs and other things that may come up during the tenant switch over period. If you have any questions or would like to explore your options contact a team member today.