How to Sell a Tenant Occupied Property?
There are times when you want to sell your rental income property. Maybe you are getting a good price for the property or you have become tired of being a landlord. Whatever the reason behind selling it, you can sell your building as it is your property, right? But selling a property that is tenant occupied is not the same as selling your car because tenants have some rights just as you have rights as a landlord. Thankfully, there are ways to sell your tenant occupied property.
You can give time to your tenant to vacate
If the tenant is living on a month by month lease you can ask your tenant to vacate the property by giving him a 30 or 60-day notice in advance. The duration of this notice varies from one state to another. You can wait till your tenants have vacated the property or you can choose to show your property to the potential buyers. In this case, you must give a reasonable notice (24 to 48 hours) to the tenant that prospective buyers are coming on a visit.
If the tenant is living on a one-year lease, he has right to live out the remainder of the term in your property. In such a scenario, you can ask the tenant to vacate only if there is a clause for early termination of the lease agreement. You can evict the tenant if he has violated any terms of the clause also.
Sell the property to an investor
It is possible to sell the tenant occupied property to an investor. Many investors are interested in rental income properties and they are happy to find that the property is already occupied by tenants.
You can sell it to the tenant himself
Once you have decided to sell the property, you must ask your tenants to vacate. If their lease term is long, they may not be willing to leave early. In that case, you can ask them to buy the property. You can help them in buying the property if they are ready by arranging finance for them.
Pay incentive to tenants to vacate the property
If the tenant does not want to vacate the property and does not show interest in buying it, you can offer some money in exchange for vacating the property. You can also give options of paying for moving costs or down payment to get another rental property.