Hey you guys, Carter here with CB Home Solutions. In today’s video I’m going to be discussing how to sell a rental property with tenants currently occupying.
You kind of have a decision to make and at this point, you’re passively considering selling your rental property with tenants if you’re watching this video. So what do you do, what are the steps in the process? How can you break it down?
When you’re going to sell the property, you always have choices. You can sell it for sale by owner, you can list it with a real estate broker or you can sell it to a company like ours. We are a local real estate investment company that buys properties for cash. We can buy them as is in 14 days or less if need be. But that’s our pitch, that’s what we do here at CB Home Solutions.
How do you sell a rental property with tenants, especially if you don’t want to disrupt the tenants or you don’t want them to get upset and angry that you’re selling? There’s multiple different strategies and techniques that you can do. Number one; if you don’t want to disrupt the tenants and you don’t want them to know that you’re selling, realistically, option number one on listing for sale by owner, and option number two of listing with a real estate broker are completely off the table. So if you don’t want your tenants knowing that you’re going to be selling the property, your only option is to sell to a company like ours who buys property in the area.
What does that mean? What is the next step in the process? Well, the first things first is to get on the phone with myself or another company like ours and discuss how we operate, how we conduct business, what our process looks like. On an adverse situation like this what we would do is have a brief phone conversation. During that phone conversation I would ask you questions about the property, questions about the tenant, kind of what’s going on, the current rental rates, everything like that. Just want to get a basic understanding and idea on what is going on and how we can help you out.
And then from there I need to verify a few things on my computer. I’ll look at comparable properties to see what they’re selling for, just to see if it’d be worth us actually coming out to take a look. Because ultimately in the end, I don’t want to waste your time. I don’t want you to waste my time. Time is the most limited commodity, so that is what we’re trying to avoid.
When you’re selling a rental property with a tenant currently in there, how do you go about showing it to us? Because we’re ultimately going to need to see it before purchasing it. Unless you want to do a site unseen offer it’s going to be significantly lower because we have to factor in replacing everything because we just don’t know. But we can also do that. We just purchased a property where we only saw one out of four units, but the offer was significantly lower to compensate for that.
If you want us to actually look at the property, typically a good idea, solution, or thing to propose to your tenants is that you’re going to be bringing in an insurance agent through. If you let them know that, then I will show up. I’ll be dressed up in a nice shirt like this, and jeans or khakis, something along those lines and I’ll just evaluate the property. I’ll have a notepad. I’ll probably take some photos, everything like that, just to make sure that everything is legitimate. If the tenant asks me any questions, I’ll just tell them, “Look, I’m the insurance agent. Just coming in and doing a little bit of research on the property to [inaudible 00:03:33] the insurance to make sure that everything’s good to go.
Even though you’re deceiving your tenant, you’re ultimately … if you don’t want the property anymore, you need to decide to do something. So is it better to tell not necessarily a lie, but tell them just so I can get an evaluated view and everything like that? And you might not necessarily care too much what your tenant thinks. It is what it is. It’s your property. You get to make the decision, and that’s ultimately what you would possibly need to do when selling your property when it’s currently tenant occupied.
Now after we evaluate it, then what happens? I’m going to go back, get in front of my computer, run some numbers, and then I’ll give you a call within 24 hours. Within 24 hours I’ll be able to have an offer verbally made out to you and then we can send a physical offer over to you, whether it’s in the mail or to your email, whatever it might be just so you have something in written evidence on what we can actually pay for the property. Then it’s up to you to decide if our offer to purchase your tenant occupied property is going to be enough, or if you need to go a different route and possibly list it with a real estate broker or go for sale by owner.
I hope you guys found this information valuable. If you are considering selling a tenant occupied property, please reach out to us. I would love to connect with you. Fill out the form below or give us a call on or office line. Thank you so much for watching and I’ll talk to you soon.