How to sell a property occupied By Tenants?

As investors, there may be reasons to decide to sell a rental property, it may be to have another more attractive project or to receive an attractive offer for the property. And knowing that it is legally possible to sell a rented home, we must also consider that just as owner-lessors have their rights, so do tenants. 

• Sell ​​the Property to be Inhabited by the New Owners:

The Lease Agreement is for a Short Period:  If the tenant is under a lease that is renewed, for example, every 3 months, they may be asked to vacate the property, giving 30 or 60 days notice before the next renewal (The time notice varies from state to state.) You can wait until the tenants vacate the property or you can choose to show the property to potential buyers. In this case, the tenant must be notified, at least 24 or 48 hours in advance, that the property is going to be shown on the date and time indicated. 

The Lease Contract is for One Year: The tenant has the right to live in the property until the expiration of the term agreed in the contract. Only if there is an early termination clause in the contract can the tenant be asked to vacate before the end of the contract. Also, following the legally established procedure, the tenant can be asked to vacate the home in case he has violated the contract in any of its parts. 

Selling the Property to an Investor: It is possible to sell the tenant-occupied property to an investor. Many investors are interested in generating income through rental properties and if the property is already rented it is a time saver for them. For this, the sales contract must specify that the property is occupied with the tenants’ information.

Sell ​​to the Tenant: There are owners who, once they have decided to sell the property, offer it to the tenant as the first option. If the tenant is willing to buy the property, some landlords help them in the purchasing process through financial arrangements with them.

Incentives for Tenants to Vacate the Property: If the tenant does not want to leave the property, does not show interest in purchasing it, and the buyer wants it vacant, he or she may be offered a cash settlement in exchange for vacating the property.

For all cases there are alternatives and documents that legally support the transaction. If you want to make this type of transaction, contact me and I will be happy to guide you.