Owning rental property can be a great way to increase your monthly income. However, it's not as easy as everyone makes it sound. It's hard work and being a landlord isn't for everyone.
No matter what your reasoning is, if you're ready to sell a rental property, there are a few things you need to know.
Selling property is difficult enough without tenants living there. The process becomes significantly more challenging when there's someone residing inside.
You may be wondering if it's even possible to sell a rental property when there are current tenants in place. This guide will answer that question for you.
We're also going to explore legal considerations, benefits, and potential challenges. Read on so you're prepared when the time comes to sell.
Sell Rental Property Benefits
While it may seem to add a little stress to the selling process, having your rental property leased can prove to be beneficial.
One benefit is that you'll have built-in staging. Buyers can have a hard time picturing themselves in a home that is completely empty. If your tenants have the place decorated nicely, it can be more appealing to potential buyers.
The property may also be more attractive to other investors if there are rental tenants.
It will save them the time of having to find new renters.
Disclose the Sale to Tenants
The first thing you need to do when you decide to sell your property is to tell your tenants. Transparency is crucial when you want to sell rental property with tenants in place.
Giving them this information will give the tenant enough time to plan accordingly. Be sure to research local law. You'll likely need to provide written notice.
Incentives and Cooperation
You may need to offer your tenants incentives. You'll want the property to look good for showings. Offering a discount on rent or paying for moving expenses can be a great way to incentivize your current tenants.
Showings and Access
It's vital that you respect your renter's privacy. Potential buyers are going to want to see the property in person.
You'll need to work with your renters to set up a schedule that works for them. It will be easier to maintain a good relationship with your tenants if you give them ample notice of showings.
Sell to Your Tenants
When you're thing about how to sell a rental property, you may want to consider selling it to your current tenants.
They may not be interested, but it's possible that they are. It would also make the process easier for both parties.
From Landlord to Seller
It is possible to sell rental property with tenants in place, but as you can see, it requires careful and thoughtful planning. As a landlord, it's vital that you take the time to research local laws and be transparent with your rental tenants.
Following the tips above will make navigating the process much easier. It's also a good idea to work with a group of professionals who are knowledgeable about the procedures.
We have worked with many landlords in Grand Rapids, Michigan. We are confident we can help you too! Give us a call today!