Selling Rental Property: How to Make it a Smooth Transition
Selling rental property might not always be a smooth process. You are worried about tenants leaving, getting upset that they need to show their unit, or even worried that their rent might be raised. This can cause unforeseen cooperation issues that eventually lead to further problems.
So now you might be asking yourself, “How do I sell my rental without dealing with any of those issues?”. And that is what I am here to answer!
In the following few paragraphs I will provide options & strategies to selling your rental property without having to go through chaos.
Tip #1 Give Your Tenants Plenty of Notice
It’s not like you have to tell your tenants 5 months in advance that you plan on selling the property, but I would just mention to them that in the next couple weeks or months that you might consider selling it. Also, when you are on that subject with them, make sure to assure them that nothing else will change during the term of their lease. THIS IS SO IMPORTANT. The first thing tenants hear when they know you are selling is “How does this effect me”. Make sure to be 100% clear with them that you will control everything in your power. Prior to listing the property or selling it directly I would suggest at least a 2 week notice either sent via email, phone call, or letter. MAKE SURE THEY RECEIVE THIS
Tip #2 Provide the Tenant’s an Incentive
Everyone likes knowing that they will “Get something” if they cooperate. This is no different when it comes to selling rental property with tenants. Give them some sort of discount on their monthly rent for the time that the property is listed to incentivize them to cooperate with showing requests & inspections. This will ease the burden of having strangers walking through your apartment.
Tip #3 Set the Standard
When the landlord does not make it 100% clear how things will be handled when it comes time to list the property there becomes several issues. As a landlord you should make it clear to the tenants on the certain standard that needs to be maintained in order for you to show & sell the property in a timely manner.
Tip #4 Be a Truth Teller
It is not hard to believe that most landlord’s claim to “Not know what is wrong with their property”. Just because they haven’t lived there does not mean they have forgot all the maintenance requests they have received. Make sure when you are a landlord selling your rental property that you make the new buyer aware of any defects that you are aware of. This will save you time & money, and keep you out of the legal system if anything were ever to go wrong.
I hope you found this article on selling rental property useful. If your rental is in need of repairs & you don’t want to go through the hassle of listing it on the market, please reach out to us for an offer on your property.