How to Sell a Property With a Tenant in Place

Here's how you can sell a tenant-occupied property.

We have a lot of investor clients who would love to take advantage of these market conditions and sell their investment properties. The problem many of them are running into is that they already have a tenant in place and a lease that hasn’t come to term.

If you're in a similar position, we have a few options you can use to maximize your opportunities to either cash out on your equity or do a 1031 exchange and buy a new property with today’s low rates. You might have more options than you realize!

The first option is contacting the tenant to see if they are interested in purchasing the property. You might be surprised that the tenant wants to take advantage of the market conditions and these low interest rates. Oftentimes when we contact the tenant, it helps create some urgency to get qualified. This is the easiest and most straightforward solution.

 

 

 

 

Another option is selling the property with the lease in place. Due to this low inventory market, buyers are willing to purchase a property and wait for the lease to run out so they can lock in their interest rate now. We also have a network of hundreds of investors who might be interested in purchasing a property with a lease and tenant already in place.

The most popular option right now is incentivizing the tenant. Maybe give them a few months of free rent or pay for their moving expenses in exchange for terminating the lease and the ability to show the property regularly.

All of these options are working for our clients these days, but the right decision for you depends on your situation. If you have any questions for us or would like to put a plan in place to take advantage of this market, don't hesitate to reach out via phone or email. We look forward to hearing from you soon.