It is not common, but sometimes landlords choose to sell their rental properties. They may want to venture into a new business, or they may prefer to lessen their responsibilities. There is no problem when that happens if the said property is vacant. However, if there are current tenants, that is a different situation. You may or may not have experienced this yet, but do you know how landlords deal with it?
Other people will think landlords cannot sell their properties if there are tenants currently living in them. On the contrary, they can. But they must go through the correct process of letting the renters know their intent to sell. Once an occupied rental is purchased, the lease and everything included will transfer to the new owner. And I mean everything-the responsibilities, obligations, and security deposits.
Selling an occupied rental can have its advantages. Buyers who wish to acquire the property with existing tenants may be willing to pay more because everything is already in place. However, it may also take longer to sell.
Reasons why landlords would want to sell:
Why would a landlord sell a rental when it’s earning money? Well, I could tell you some of the reasons why landlords would put their property on the market.
They do not want to become landlords anymore.
Some people are just not meant to be landlords. They may get overwhelmed with the responsibilities and management tasks they have to do. Again, it is not an easy job.
There are changes in the area or neighborhood.
One of the contributing factors for tenants is the location of the rental. They would want somewhere accessible to schools, supermarkets, and hospitals. However, the neighborhood may change after a while and will start to decline.
The property needs expensive repairs.
Landlords know the condition of their real estate, and they would realize if it needs major renovations. Sometimes they refuse to spend thousands of dollars and choose to sell the property instead.
Giving notice of intent to sell:
Once the landlord decides to dispose of the property, the right thing is to let the tenants know. But first, they should have a termination clause in their lease agreement. If you can, remind the landlords to include it.
Before they give out their notice, landlords should remember a few things. They should be honest and straightforward when informing their renters. The tenants may not react pleasantly to the news, but property owners should explain the situation. They should also discuss what will happen to the security deposit and contract. Landlords can offer incentives, such as free cleaning services or gift cards.
Information to include in the notice:
The notice of intent to sell should be concise, detailed, and complete. It should consist of the following:
- Information such as date, landlord’s name, tenant’s name, and rental address
- Notification that the rental is up for sale and the new owner will handle the current lease
- Brief the tenants about how much notice they will receive before the property showing, and real estate agents will accompany potential buyers.
- Incentives, if there are any.
- Thanking the tenants for their cooperation during the sale by keeping a tidy house
Remember that it is not also easy for the landlord to let go of their investment. If there is something you can assist them with, help them as much as you can. Sometimes they may offer the tenants to lend a hand if they are looking for other rentals if their lease is almost up. And this is where you come in.
Let them know about the vacancies by referring them to check Padleads. If you’re not using it yet, Padleads will let you post your property listings and syndicate them to other websites. The tenants may find their new dream home there with your help.