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Old 03-01-2021, 03:50 AM
 
Location: Illinois USA
643 posts, read 343,240 times
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Has anyone sold a property while it is being rented ?

problem is putting it on the market w/o renter is risky , what if it does not sell then you lose few months of rent for nothing [tried that in past w/o success] plus getting tenent in this condo is not easy the HOA dictates who can qualify as a renter and its not easy

Is there a way to put it on market while being rented out ? thoughts or opinions ?

Thanks
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Old 03-01-2021, 05:00 AM
 
90,117 posts, read 87,497,167 times
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You can sell it with a tenant but it may make a world of difference if a tenant is in it ..for an investor that may be a good thing depending on the rent ..for someone looking to buy to live there it can be playing with fire ...

You may have to spend months evicting them when the lease is up if they don’t leave or if no lease when you can legally ask them to vacate and they don’t leave .


There is really no good way to appeal to both kinds of buyers.

We sold our coops with rent stabilized tenants to an investor group but at cents on the dollar .but that is a different situation since you can’t get those tenants out .

Last edited by mathjak107; 03-01-2021 at 05:55 AM..
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Old 03-01-2021, 05:54 AM
 
Location: Scottsdale, AZ and Redwood City, CA
12,207 posts, read 8,170,670 times
Reputation: 43791
Tenants can also make it difficult for you to show the place. They have no reason to be cooperative unless you sweeten the deal for them with cash to help them move. Even that might not work. I would get them out first, which is what I did when I sold my condo.
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Old 03-01-2021, 09:08 AM
 
Location: Phoenix, AZ
3,930 posts, read 2,087,214 times
Reputation: 10284
Quote:
Originally Posted by Dad01 View Post
Has anyone sold a property while it is being rented ?
I tried it and learned quickly that, for reasons already stated, it doesn't work. Unless you are willing to sell to investors who low ball you.

Quote:
Originally Posted by Dad01 View Post

problem is putting it on the market w/o renter is risky , what if it does not sell then you lose few months of rent for nothing [tried that in past w/o success] plus getting tenent in this condo is not easy the HOA dictates who can qualify as a renter and its not easy
Living in fear of "what ifs" is no way to live. Losing some rent is preferable to the price enhancement of a clean, unoccupied home that appeals to somebody who wants to live there. If you aren't prepared to go a couple of months without rent you shouldn't be owning a rental in the first place.

Quote:
Originally Posted by Dad01 View Post

getting tenent in this condo is not easy the HOA dictates who can qualify as a renter and its not easy
Ouch. That's the best reason to get the tenants out and unload that property.

Quote:
Originally Posted by Dad01 View Post
Is there a way to put it on market while being rented out ?
Sure. Same way you do it if it wasn't rented.
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Old 03-01-2021, 09:54 AM
 
5,983 posts, read 4,655,101 times
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Even the most initially cooperative tenant will become difficult after a couple of showings. You probably won't ever know how often the tenant denies a showing or doesn't answer the door when a buyer shows up. Trust me, it happens. Do yourself a favor and wait until unoccupied to list. I've shown units with tenants before who were eager to point out to the prospective buyers every deficiency of the property in hopes of discouraging the sale.
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Old 03-01-2021, 10:06 AM
 
Location: Olympia area (for now)
2,432 posts, read 1,113,682 times
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Selling a unit while someone is renting it is risky. There is no reason for a tenant to get off their sofa on movie night, to let a bunch of strangers in to invade their space. You should offer to make it worth their while, reduced rent, cash incentive when it sells or pay their moving expenses. Anything to get them interested in helping to sell your unit. Otherwise, sell it after their lease expires.
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Old 03-04-2021, 03:43 PM
 
Location: Illinois USA
643 posts, read 343,240 times
Reputation: 499
Quote:
Originally Posted by adjusterjack View Post
I tried it and learned quickly that, for reasons already stated, it doesn't work. Unless you are willing to sell to investors who low ball you.



Living in fear of "what ifs" is no way to live. Losing some rent is preferable to the price enhancement of a clean, unoccupied home that appeals to somebody who wants to live there. If you aren't prepared to go a couple of months without rent you shouldn't be owning a rental in the first place.

.
problem is it was unoccupied for five months in 2019 and we did showings [only a couple of offers] and took a massive financial hit a bit burned by it

if it was in my name I would have done whatever [lower price , upgrade, sweeten the deal some other way etc etc] it takes to sell it so I can get out of it but the owner she spent most of her savings as down payment so not willing to budge on the price
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Old 03-04-2021, 06:52 PM
 
Location: Phoenix, AZ
3,930 posts, read 2,087,214 times
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Quote:
Originally Posted by Dad01 View Post
the owner she spent most of her savings as down payment so not willing to budge on the price

You don't own it? Why is it your business?
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Old 03-04-2021, 07:26 PM
 
1,880 posts, read 1,477,426 times
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Quote:
Originally Posted by Dad01 View Post
problem is it was unoccupied for five months in 2019 and we did showings [only a couple of offers] and took a massive financial hit a bit burned by it

if it was in my name I would have done whatever [lower price , upgrade, sweeten the deal some other way etc etc] it takes to sell it so I can get out of it but the owner she spent most of her savings as down payment so not willing to budge on the price
I get the feeling that the owner relies on the rental income as a major source of income. It also sounds like she made a poor investment decision to purchase it in the first place. Is the property at risk of foreclosure if the rental income stops coming in? She put herself in a very difficult position that might end poorly.
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Old 03-05-2021, 11:01 AM
 
1,471 posts, read 3,470,832 times
Reputation: 1682
Default other side

I feel I need to add my $.02.... I rented a small house a few years ago and 6 weeks after moving in the Realtor that handled the lease called me to say he was stopping by that evening, would I be home around 6? I said yes, asked if there was a problem, he said no he wanted to check something and talk with me. No concern.

He arrives and first thing he does is place a For Sale sign in the yard. WTF!!!!!!!!!! I panicked. I met him on the side porch and he said the owner had decided to sell the house - but don't worry - your lease will stay in effect through the remaining 11 months. I was gut punched. 6 weeks and she decided to sell. BS! she didn't want the house empty for however long it took to sell.

I mentioned since I had the small dog I needed at least 24 hours notice before he could show the house, so I could be home to get the dog and take for a walk, or if the 'buyer" didn't mind a barking dog, they could walk through with him - just needed 24 hours notice. He said no problem.

(1) at least 5 people saw the sign and came a knocked on the door to discuss with me. I'm not selling, I know nothing about the sale - call the agent. The dumbest questions - what's the least I can offer for it and get the house - I don't even know what they're asking. Will they do a lease purchase - again ask the agent.

(2) he started "self showing" after his office hours at 6:00, since I was there, I could show. I'm not a licensed agent, not getting anything out of this other than a lot of aggravation. again more idiots stopping to ask me questions. I finally started yelling at the door call the agent I don't know anything. I had 14, people look at the house.

(3) one Saturday morning at 8:00 am I get a call from Loser agent saying another agent and his client would be there at 9:00 let them in. I had barely gotten out of bed, hadn't showered, eaten, dressed or walked the dog. 9:00 sharp knock at the door and I opened it to find agent in flowered Hawaiian shirt, shorts and flip flops. he introduced himself, offered me a cup of coffee and said his client was running a few minutes late, he asked if I minded him waiting on the porch. No Problem. A few minutes later I heard talking on the porch and went to open the door and met the funniest man I've ever met. Barrell chested black buzz cut hair, with the heaviest Irish accent I've ever heard. he started picking at my dog who kept looking at him like what the heck are you saying - I can't understand. Long story short he's the one that bought the house and was the best landlord I've ever had. 3 years of pure joy. He told the seller & agent they were crap for expecting me to show the house and told them they owed me 2 months free rent for my trouble. They were astounded, but did pay me.

Just don't be a jerk to your tenant, work with their schedule, offer concessions,

In the end it turned out well, but I will never rent a house without an addendum to the lease regarding any possible sale,
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