Today, David is talking about putting investment properties on the market while the tenants are still living in the home. Is this a good idea, or should they wait until the tenant is moved out? With the home values increasing, investors are looking to take advantage of the market and sell their properties.
It is usually best to wait until the tenants move out of the property before putting the property on the market. If the tenants are in a month-to-month lease, then definitely wait until they are moved out. It is essential to know what kind of lease the tenant signed; there will be language in the lease addressing the issue of the property being sold. If the lease does not state that it can be broken upon the sale of the property, then a large percentage of buyers are eliminated. Most buyers are looking to move into a primary residence and will not want to wait for the tenant to move out. Now, the pool of buyers is limited to only investment buyers.
Another reason to wait for a month-to-month tenant to move out is to eliminate the need to ask them for their assistance. The landlord will have to rely on the tenant to get the home in top showing condition and to keep it that way for the showings. This can be a burden on a tenant with a busy schedule or children. Oftentimes, the landlord and the tenant do not have the same goals, and the tenant might not be concerned with helping the landlord sell the property for top dollar. A great way investors can get tenants to work with them is to offer incentives: For example, they might offer discounted rent during the showing period or something else along that line to get the tenant to work with them. Selling an investment property with a tenant can be a challenge, but it can be done!
