There are numerous reasons why a homeowner would want to sell his property. The reasons may include wishing to invest in new property, needing fast money, and wanting to move to a new location, among others. The processes involved in selling a house can be daunting for a first-time seller, and hiring the services of a real estate agent is the best move as they guide you through the sales process.
Having tenants on the property would be an obstacle to sales. Under state tenant law, you can only sell the property if you give the tenants adequate notice. Hence, they find other accommodations and move their belongings out of the premises. It's essential to check your state laws to ensure you meet all the requirements before proceeding with the sale of the property to avoid any problems with the law.
There are things you can consider before going ahead with the sale. Here are some of them:
Any property damage would reduce the house's value, so it's essential to fix any issues that the house may have. These may include water spots, mold, and cracks in the wall. This would make your home look more attractive to potential buyers.
It'd also help to inspect the house by an inspection officer so you can get the all-clear to proceed with the sale. Any damages may leave you liable to be sued by potential buyers if they are unhappy with the property's condition.
You can set the price of the property either by calculating the amount you invested in it or by calling the services of a real estate agent. Some agencies can help you with the evaluation and sale of your property in a bid to save you time and stress. For example, a real estate agency that facilitates property sales like we buy houses for cash can help shoulder the responsibility of evaluating your home.
Real estate is a reliable means of getting returns on your income. The following are ways to sell your rented property:
1. Pay Your Tenant To Leave
You can encourage the tenants to leave the rental property by offering to pay them off. This involves working out an agreement with the tenants to pay their moving bills and the amount remaining on the lease. This reassures them that they aren't being kicked out and acts as a soft landing.
When calculating the amount you want to offer the tenants, you should consider the amount paid as a security deposit, the time left on the lease, and how much it'd cost to fix up the property. Don't offer an amount beyond your budget, as your goal is to make a profit at the end of the sale.
2. Wait For The Lease To Expire
A simpler, less costly method would be to wait out the tenant lease agreement. In this situation, you wait for the rent agreement with the tenants to expire, then inform them that you intend to sell the property. This option would save you a bit of money as you won't be required to settle the tenants; but depending on the time remaining on the lease agreement, you might be required to delay the sale of the property.
It's important to know that the market is volatile, and the longer you push the sales, the more value the property loses.
3. Find A Buyer To Buy The Property And Rent It Out
While the other options cost you time and money, this would require intensive effort. You'd need to get all the documents for the property in order and find someone willing to rent it out after the sale goes through. Proving to a new owner that the investment is worth it might be tricky, but it'd be worthwhile as you would get a significant return. You can also reach an agreement with the new owner that gives you a share of future payments.
4. Sell To Your Tenant
The final option would be to sell to your current tenant. This is a rare occurrence, as the tenant would need to be interested in owning property and be in a position to take on the financial responsibilities of buying property. If both conditions are satisfied, this would greatly benefit both parties, as the tenants wouldn't have to go through the stress of moving out and the seller wouldn't have to spend a long time finding a buyer. If the tenants have been happy with the property, they'd most likely consider buying it.
Property value increases over time, and knowing the right time to sell could leave you financially secure. You can enlist the services of house-selling agents, as this would save you the need to find a buyer or spend money on repairs. You can also put the house on the market if you prefer to do the work yourself. It's essential to inform your tenants about a potential sale to give them sufficient notice to move out and to stay within the letter of tenancy laws.