If your current tenant is in a month to month rental agreement with you then it is your obligation to give them a minimum of 60 days notice from the first of the month – unless otherwise specified in your rental agreement. If your tenant has signed an extended lease, the tenant has a right to stay and all lease obligations transfer to the new owner until the end of the lease term. If your buyer has specific needs or conditions, then you may consider talking to your tenant about an early lease buyout.
Know your niche –If your target buyer happens to be another investor than the prospect of having a paying lease or monthly tenant that is attached to the investment property may enhance the appeal of your listing. Conversely, tenants can be viewed as an inconvenience to buyers that will actually move into the unit themselves. In this case, you should try to time the listing of your property at the end of their lease to allow for a smooth transition.
Limit your Leases.Depending on your short and long-term goals, you may want to limit your lease durations to 1 year to allow for the most flexibility. If you plan on selling your condo anytime in the next 3-6 months don’t take on any new leases. A vacant unit is more of an attractive feature for “move in” buyers than it is a deterrent for buyers looking to purchase a rentable property.
Adjust Your Rent Yearly.Because leases transfers with your property, a tenant who is paying below market rent will mean the new owner will take in less income than they would with a comparable property, affecting the value and thus the sale price of your home. Charge market rent value to any new tenants, and always increase rents annually by the amount allowed by law to ensure that your property’s rent is proportionate to the rest of your property’s value.
How to Approach Staging –Occupied investment condos can be a little tricky to present to prospective buyers. As a landlord, you technically can’t stage your tenant’s unit or force them to arrange it in a certain way or to keep it clean. You DO have the right to service broken appliances, update fixtures, or clean carpets. Most tenants appreciate these types of updates to their living space and will be amiable about them.
Marketing–Photos of your investment condo could work against you if your tenants are messy. Rely on us to find the most effective ways to highlight your property’s core benefits.
Showings– Try and maintain a good relationship with your tenants, and allow our real estate team to build a positive relationship with them. Open houses can be difficult to arrange with certain tenants so establishing this rapport will go a long way towards giving you and your agent the flexibility and staging environment needed to ensure a fast sale. It is your right as a landlord to show your home to potential buyers with 24 hours notice so don’t let tenants walk all over you and limit how and when you show your unit. On the other hand, your tenant is not required to leave their apartment during a showing, even though this is ideal. Making a courteous request in advance and giving them respect during this transition will show that you value their time and needs which will help reduce stress during the listing and selling process for all parties involved.