{"id":4314,"date":"2019-03-27T10:55:46","date_gmt":"2019-03-27T17:55:46","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=4314"},"modified":"2019-04-24T14:27:29","modified_gmt":"2019-04-24T21:27:29","slug":"sell-rental-property","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/sell-rental-property\/","title":{"rendered":"So You Want to Sell Your Rental Property &#8211; Here&#8217;s How"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-10700\" src=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2016\/03\/So-You-Want-to-Sell-Your-Rental-Property-Heres-How-600x343.jpg\" alt=\"sell your rental property\" width=\"600\" height=\"343\" srcset=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2016\/03\/So-You-Want-to-Sell-Your-Rental-Property-Heres-How-600x343.jpg 600w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2016\/03\/So-You-Want-to-Sell-Your-Rental-Property-Heres-How-300x171.jpg 300w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2016\/03\/So-You-Want-to-Sell-Your-Rental-Property-Heres-How.jpg 700w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">As a landlord, you may choose to sell your rental property for a variety of reasons.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> Regardless of the reason, selling an investment property takes a little extra work due to the fact that someone else is typically living in your home. Selling a renter-occupied home requires coordination with your tenants to keep the house in show-able condition during the listing period and accommodate agents popping in to show the house to buyers. \u00a0You may also experience challenges if your tenants do not want to move.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<h4>Reasons You May Sell Your Rental Property:<\/h4>\n<ul>\n<li><span style=\"font-weight: 400;\">Perhaps you are moving and don\u2019t want to be a long distance landlord.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Maybe you inherited the property, with no intention of ever being a landlord.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">You may live in a hot real estate market and you&#8217;re ready to liquidate your investment.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Or you might be simply ready to get out of the landlording game altogether.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It may seem logical to wait until your tenants move out before putting a rental property up for sale. \u00a0In this situation, a seller must decide if the convenience of selling an empty home is worth the potential income loss if the property sits vacant for too long. \u00a0According to <a href=\"https:\/\/www.realtor.com\/research\/january-2019-data\/\">Realtor.com<\/a>, <\/span><span style=\"font-weight: 400;\">the\u00a0<\/span><span style=\"font-weight: 400;\">average days on market for homes sold<\/span><span style=\"font-weight: 400;\"> in January 2019 was 87 days, nationally. \u00a0Depending on where you live, the selling period could be longer or shorter. \u00a0That could be rental income you might not be willing to part with.<\/span><\/p>\n<p>In other cases, you will decide to move forward with a sale when a renter still occupies the home. \u00a0Most state laws allow homeowners to sell their investments at any point during ownership, even if it is currently occupied by a tenant. \u00a0The best way to make the sale of a renter-occupied home go smoothly is to communicate with your tenants to work together and coordinate schedules.<\/p>\n<h2>Tell Your Tenants<\/h2>\n<p>The most important step in dealing with your renters during a sale involves active communication. \u00a0You should not be afraid of an in-person conversation with your tenants explaining your plans with selling the property. \u00a0Personalizing the experience with your tenants will help them feel included in your decision and will encourage their participation during the process.<\/p>\n<p>The success of dealing with a tenant during a sale is less about the message and more about how it is delivered. \u00a0Give your tenants time to decide if they want to move, advanced notice before showings, and incentives to work with you during the process.<\/p>\n<h2>Empathize with Your Tenants<\/h2>\n<p>Your tenants might be shocked to learn they might have to move before they originally planned. \u00a0You will benefit from acting respectful and accommodating to their reaction. Outline your timeline and explain the process so they know their options.<\/p>\n<p><strong>Tenant options can include:<\/strong><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Start the moving process now<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Wait until the sale goes through and move then<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Hope that the buyer will keep the property as a rental and the tenants will not have to move. \u00a0<\/span><\/li>\n<\/ol>\n<p>Depending on the terms of your lease you will have to deal with the need to handle your renter\u2019s tenancy in different ways.<\/p>\n<h2>Fix-Term Lease Tenants<\/h2>\n<p>Your tenants are entitled to live at your house throughout the length of the lease agreement they signed with you. If you decide to sell the home before their lease expires, the new buyer will have to agree to take over the lease.<\/p>\n<p><span style=\"font-weight: 400;\">The other option is to arrive upon a mutual agreement with your tenants that they will vacate the home once it has been sold, ending the lease early. <\/span><a href=\"http:\/\/homeguides.sfgate.com\/terminate-apartment-lease-legally-8136.html\"><span style=\"font-weight: 400;\">Any lease can be legally terminated<\/span><\/a><span style=\"font-weight: 400;\"> before its end date if both parties agree<\/span><span style=\"font-weight: 400;\">. Landlords may be successful in reaching agreement about an early lease termination if they offer incentives like covering the cost of moving expenses or offering a rent discount.<\/span><\/p>\n<h2>Month-to-Month Lease Tenants<\/h2>\n<p>If your tenant is on a month-to-month lease, they have fewer protections in staying at the property during or after the sale. If you want your tenants to move before the selling process starts, you simply need to provide your tenants with written notice about the end date of their tenancy. The same holds true if you want the tenant to move once the house has been sold; just send them a written notice that their lease is up in XX days.<\/p>\n<p>Depending on your state or city, you are required to notify your tenants before they must move, typically 30 days in advance.<\/p>\n<h2>Showing a Renter-Occupied Home<\/h2>\n<p><span style=\"font-weight: 400;\">If your tenants remain living in the home during the selling process, you will need to work with them to have the home available for showings and in pristine condition. \u00a0<\/span><span style=\"font-weight: 400;\"><a href=\"http:\/\/www.bankrate.com\/finance\/real-estate\/sell-home-with-tenant.aspx\">Home values have been known to <\/a>drop because<\/span><span style=\"font-weight: 400;\">\u00a0of the condition of the home and the lack of access for agents and prospective buyers.<\/span><span style=\"font-weight: 400;\">\u00a0\u00a0<\/span><\/p>\n<p>A great way to encourage active participation from your tenants to work with real estate agents and accommodate showings is to offer incentives. \u00a0Rent discounts are excellent monetary rewards for helping you sell your home.<\/p>\n<p>Other incentives include:<\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>A weekly or bi-weekly cleaning service<\/strong> -this will keep your house in a clean state for showings, encourage your tenants to keep the place tidy, and will help your tenants get their security deposit back!<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Restaurant gift certificates or Movie Tickets<\/strong> for showing appointments &#8211; you will get your tenants out of the house for a fun activity when an agent needs to stop by.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Hotel room during an open house weekend<\/strong> &#8211; Staying away from your home a whole weekend is a lot to ask, the convenience of a hotel room will be greatly appreciated by your tenants and give them a place to relax during a stressful time.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Taking the steps to include your tenants during the selling process will be beneficial for a smooth rental property sale. \u00a0If you <\/span><a href=\"https:\/\/magazine.realtor\/for-brokers\/network\/article\/2017\/04\/help-buyers-find-a-profitable-investment\"><span style=\"font-weight: 400;\">choose to work with a real estate agent<\/span><\/a><span style=\"font-weight: 400;\">, make sure they understand the terms of tenancy for your current renter. \u00a0Additionally, you should consider these ideal buyers for your rental property.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Ideal Buyers of Your Rental Property:<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\"><b>Your Tenant.<\/b><span style=\"font-weight: 400;\"> Consider approaching your tenant. \u00a0In some cases, your tenant may be interested in purchasing the home from you. \u00a0Long term tenants with stable income may be in a position to purchase your home and avoid moving from the property they have come to love. \u00a0\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>An Investor.<\/b><span style=\"font-weight: 400;\"> \u00a0If you market your property as a rent-ready investment property, you may attract like-minded landlords who are looking to expand their portfolio. \u00a0If you already have a responsible, rent-paying tenant, your property can look exceptionally appealing to a smart investor who sees the benefit of collecting rental income right away by avoiding the process of finding their own renter.<br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><i><span style=\"font-weight: 400;\">Note to investors: If you are purchasing a renter-occupied home and plan to keep the same tenants, make sure to require that are entitled to conduct your own tenant screening and have the current tenants sign a new lease with you.<\/span><\/i><\/li>\n<\/ul>\n<hr \/>\n<h3>RELATED READING FOR YOU:<\/h3>\n<ul>\n<li><a class=\"yoast-link-suggestion__value\" href=\"https:\/\/www.rentecdirect.com\/blog\/when-to-say-no-to-your-tenants\/\" target=\"_blank\" rel=\"noopener\">When to Say &#8220;No&#8221; to Your Tenants<\/a><\/li>\n<li><a class=\"yoast-link-suggestion__value\" href=\"https:\/\/www.rentecdirect.com\/blog\/problems-with-old-apartment-buildings\/\" target=\"_blank\" rel=\"noopener\">Problems to Check for in an Older Apartment Building or Home<\/a><\/li>\n<li><a href=\"https:\/\/www.rentecdirect.com\/blog\/buying-a-property-with-tenants\/\">Tips for Buying A Property With Existing Tenants<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>As a landlord, you may choose to sell your rental property for a variety of reasons. Regardless of the reason, selling an investment property takes a little extra work due to the fact that someone else is typically living in your home. Selling a renter-occupied home requires coordination with your tenants to keep the house [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":10700,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[275],"tags":[532,23],"class_list":["post-4314","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","tag-investing-in-real-estate","tag-investment-property","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>So You Want to Sell Your Rental Property - Here&#039;s How<\/title>\n<meta name=\"description\" content=\"Discover the best practices for selling a tenant-occupied rental property, including legal requirements, communication tactics, incentives and more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rentecdirect.com\/blog\/sell-rental-property\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"So You Want to Sell Your Rental Property - Here&#039;s How\" \/>\n<meta property=\"og:description\" content=\"Discover the best practices for selling a tenant-occupied rental property, including legal requirements, communication tactics, incentives and more.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.rentecdirect.com\/blog\/sell-rental-property\/\" \/>\n<meta property=\"og:site_name\" content=\"Rentec Direct Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/rentecdirect\/\" \/>\n<meta property=\"article:author\" content=\"https:\/\/facebook.com\/rentecdirect\" \/>\n<meta property=\"article:published_time\" content=\"2019-03-27T17:55:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-04-24T21:27:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2016\/03\/So-You-Want-to-Sell-Your-Rental-Property-Heres-How.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"700\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kaycee Miller\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@https:\/\/twitter.com\/thatrentergirl\" \/>\n<meta name=\"twitter:site\" content=\"@rentec\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kaycee Miller\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.rentecdirect.com\\\/blog\\\/sell-rental-property\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.rentecdirect.com\\\/blog\\\/sell-rental-property\\\/\"},\"author\":{\"name\":\"Kaycee Miller\",\"@id\":\"https:\\\/\\\/www.rentecdirect.com\\\/blog\\\/#\\\/schema\\\/person\\\/735d8e6faac25da39520310d459c0417\"},\"headline\":\"So You Want to Sell Your Rental Property &#8211; 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