Do you own an investment property in Rochester that you’d like to sell? When other people are living in your house, the selling process can become a bit more complicated. In our latest post, learn more about how to sell your house with tenants in Rochester!
As a landlord, there may come a day when you wish to sell your house. Even if you have tenants, it is your property and you may sell it if you wish. In some cases, you’ll be able to let your tenants know, and it won’t be an issue. However, you also don’t want to risk losing your tenants and being stuck with a vacant house while your house is on the market. That said, the tenants have rights, and you want to make sure you aren’t violating them. Below, we discuss common things that arise when you decide to sell your house with tenants in Rochester.
The Lease Situation
When you buy an investment property, your first question should be about the lease situation.
If you have a month to month lease, ending it shouldn’t be too difficult. You’ll need to provide a fair amount of notice to your tenant, typically 30-60 days. If you are in the midst of a fixed-term lease, things are a bit different. If you want to sell mid-lease, you’ll either need to sell the property to an investor who will honor the lease, or give your tenant some sort of incentive to move out.
Some leases contain early termination clauses that would allow you to end the lease early in certain situations. Remember, the tenant has rights too under the law—they can’t be kicked out on a whim.
It’s also important to ask what the lease covers (i.e. tenant pays for all utilities, or only some; which utilities are included; etc.). Asking these questions will give you insight into how much work you need do to prepare for selling or leasing your property.
Remember, before getting too far into looking at properties, outline exactly how much time and money you want to put into the deal. The next step would be to get an idea of what kind of return you can expect on this particular property by asking “What is the stabilized cap rate?”
If You Have Difficult Tenants
If your tenant has violated their lease, you should be able to evict them without an issue. That said, if your tenant is refusing to leave, the eviction process can become long and arduous. Most landlords try to avoid dealing with evictions at all costs. By selling your house with tenants directly, you’ll be able to avoid the eviction process yourself and be able to move on from the property with cash in hand. Many direct buyers will simply take over the lease and business will go on as usual. If the tenants are in violation of the lease, the buyer will go through the eviction process as necessary. Plus, a direct sale will help you avoid having to list, market, and show the property, things would likely cause even more tension between you and your difficult tenants.
There are many reasons why a direct sale is beneficial for people who need to sell their house with tenants in Rochester. Investors are happy to take over a property that already has a tenant in place, especially when they are in good standing. It saves them time and money advertising, marketing, and showing the property. They won’t have to bother screening tenants or running the background checks because those things have already been done. Even if there is a difficult tenant living in the home, an experienced investor won’t have trouble pursuing the eviction process if the tenant is in violation. They have likely had to do it before, and won’t be bothered by the process.
If you want to sell a house with tenants in Rochester, there are certain ways to go about doing it. Always make sure you are being fair to your tenants, and giving the proper amount of notice. Not only is it the law, but it is the right thing to do.