Selling an investment property differs in more ways than one from selling personal property. Factors such as tenants, leases and state laws all play a factor in determining how and when you can sell your property.
If you’re looking at the current market, houses are selling at a higher price point. For example, in places like central Ohio, the average sale price for a home is 10.4% higher than last year.
Some investment owners may want to sell due to the current market or for a myriad of other reasons. But what are the options out there when looking to sell?
Go The Traditional Route
Selling a traditional rental property can be as simple as listing it yourself. If the property is currently vacated, the process is as simple as taking photos, listing the property, and waiting for interested parties to inquire to see the house.
If your rental property is still occupied, then now would be a good time to review the lease agreement. Provide the tenant with a written notice 60 days in advance, before the end of their lease, in order to provide a sufficient amount of time for the tenant to find a new rental.
If your tenant is on a month-to-month agreement, provide a 30-day written notice of your intent to sell. Make sure to remind them to have their belongings out by the last day of the lease.
Sell Directly To Your Tenant
In any case, it would be beneficial to open up the option of purchasing the property to your tenant.
Consider hiring a real estate attorney to help with the sale and closing process. Your tenants may have lived in the home for years, and/or performed various renovations that will make them feel that the house is worth more. It's important to stay patient and have a specialist alongside that can assist throughout this process. Once an agreement is met, an attorney will most likely be responsible for writing up a sale agreement in accordance with your state and local laws.
This method is a win-win for both parties and allows the home to go to new owners who already love and appreciate the property.
Sell Through An Online Marketplace
You may be in a situation where you would like to sell your rental property, but its occupied, and the tenant is still far from the end of their lease and does not have the means or desire to purchase the property. In this circumstance, you may be able to sell your property while still retaining your tenants.
With online marketplaces such as Roofstock, you can sell your rental property while your tenants are still living in the home. Through Roofstock’s platform, there are many investors willing to purchase the property while still renting out to your current tenants after the deal is closed. This can also be arranged if your tenants are at the end of their lease, but would like to renew their lease.
This method also allows you to continue to receive rental payments all throughout the selling and buying process.
Roofstock’s platform connects sellers with over 200,000 investors looking to purchase rental properties. Roofstock makes the process of selling your investment property hassle-free and selling is done all from the comfort of your home office. Roofstock takes care of listing your property, inspecting the property, and the closing process.
To list your rental property on Roofstock, click here.
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