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Selling Your Rental Property with a Tenant Living Inside



There may be several reasons why a landlord may decide to sell his or her rental property. Some landlords may want to gain capital to purchase another property, they may want to make money off a property investment or they simply want to get out of the rental industry. Whatever the reason for selling, if the property for sale has tenants living in it then the landlord will need to follow State rules and regulations when they sell the property. Some landlords may opt to wait for the lease to end before they put the property on the market. However, it can take months to sell a house or apartment which could mean thousands lost in potential rent if the landlord chooses to leave the property vacant while trying to sell it.

If you plan on selling your rental property before the lease ends then in most states you must notify your tenants with an intent to sell letter. For example, in California you must give the letter 120 days before you can begin showing the property. The reason why you must notify your tenants of your intent to sell is because as part of the sales process you will need to show your property to potential buyers. However, because of tenants’ rights to privacy you cannot just show up to your property with potential buyers as you please. According to your state guidelines you may have to give tenants at least a 24 hour notice before you come with potential buyers to show the property.

If your property is going to be occupied while you are showing it to buyers it is important that you have good communication with your tenants. You may already be at a disadvantage as rental properties may be viewed as less desirable. Therefore, you do not want any issues you have with your tenants to result in your tenants acting in a manner that makes your property look like a risky investment. Therefore, make sure to gently remind your tenants about the proper procedure for showing the property, make sure to be considerate when your showing the property, reassure your tenants that countless strangers won’t be going through their rental and offer some incentives to your tenants to ensure they keep the property clean.

If you’re thinking about selling your rental property another aspect to consider is the profit of the sale versus rental income. In order to calculate this correctly you need to have kept track of your overall maintenance costs, utilities, bills, repairs, taxes and other monthly and yearly costs. Only an efficient can give you the variables you need to determine if it is time to sell your rental property and for how much. Do not wait until you’re thinking about selling your rental property to purchase Realty Information Systems’ or you will lose out on essential features that will help you manage your rental property efficiently.

This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.

Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.

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