Selling a Rental Property Can Be Smooth and Easy
How To Sell Your Cash Flow Property
Even investors whose real estate rental property have served them well with cash flow eventually decide to sell at some point.
When considering home prices have been going up since 2010 and today’s low inventories, today’s market makes complete sense to consider selling your income-producing rental investment.
In fact, it may be one of the most timely financial moves you make.
A wise purchase in rental property real estate can add up to thousands of extra dollars in your pocket every year.
A savvy investor knows an even wiser purchase, can mean tens or hundreds of thousands of dollars in appreciation.
That is as long as you sell at the height of the market and not during the fall.
If one should happen to be considering selling an income producing rental property it begs the question. What do you do with the tenant-occupant? Which leads to the next set of questions. Do you wait until the lease expires so the vacant property can be shown without disturbing (or possibly angering) the occupant? Or is it better to sell the property with the tenant still living there? Whatever you decide, just be sure you’re not violating any of the Florida landlord-tenant laws. The specifics will be in the terms of the rental lease (contract), but past experience will teach that following a few simple guidelines will almost always prevent any tenant-occupied rental property sales issues before they become an issue.
When dealing with “people” matters, it’s always a good idea to keep an open line of communication. Basic communication will be a major factor to ensure your transaction remains smooth through-out. Including letting the tenant-occupant know as soon as possible that their home will be going on the market. Reassuring your tenant-occupants that your agent and you will work with the renter to keep inconveniences to a minimum. Somewhere during these discussions, it may not be a bad idea to suggest they consider purchasing a home of their own. This could be a major step to curb further complications.
Be Prepared to Handle All of Your Renter’s Concerns, Including:
- Moving Out. Because your renter has such a great history, this is a slim possibility. Keep in mind, when the new owner takes possession of a rental property they must honor the previous lease. Don’t forget to provide a copy prior to closing. However, once the lease expires, the new owner is under no obligation to continue to offer the property to lease. The lease will outline specifics about what the options are when it nears expiration.
- Strangers Coming Into Their Home. Generally speaking, this is an issue for most people. I don’t know many people that are thrilled about complete strangers coming into their dwelling to “just take a look”. One way to ease the tenant’s mind is to ensure they know that only qualified buyers will be allowed showings. Plus, they will always be accompanied by a Florida-licensed real estate professional. At Miranda Executive Realty we accompany every showing on our listings, even if the buyer’s agent will be there. Not only will it ease the seller and renter’s minds. It also gives us more opportunity to market and sell the property.
- Life Interruption. Nobody likes their life being interrupted by another person. Be sure to communicate to the tenant the terms of your showing agreement regarding advanced notice being required for every showing with your Realtor® , as well as having your Realtor® communicate the same. This will go a long way to ease your tenants mind.
At the end of the day, every situation will be different and will require individual attention to specific details. For example, if your properties highest and best use would be to maintain rental status, then keeping a tenant in there might not be a bad idea. But, if you’re selling an upscale home that will likely attract an owner occupant then a vacant home, staged to the 9’s is probably the best route (always a good idea!).
No matter what the case is, the best advice will come when you call Miranda Executive Realty at The Keyes Company. We can discuss the property, and develop a marketing plan together to discuss with the renter. This is how a winning game plan is developed. So whether you’re looking to buy or sell in Coral Springs, or anywhere in Broward County we would love to see how we can make your sales process as smooth as possible.
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