Passive income earned through building a diversified real estate portfolio allows investors to live out their retirement on their terms, in the lifestyle to which they’ve become accustomed. In addition, diversity creates a safety net against inflation because while one section of the market may falter during periods of downturn, sound investments in other market sectors will continue to keep pace with inflation. After all, rental rates keep pace with increases in the cost of living.
While buying rental properties is a significant step in building your real estate portfolio, exiting properties based on your current circumstances and market trends should also be a part of your investment strategy. Selling a property isn’t an easy process, and when you add in the complications of a house with tenants in place, you may face an uphill battle.
Naturally, your tenants may not feel it is in their own best interest to be hospitable to your potential buyers during showings, especially if they believe they’re losing their home. Nevertheless, it’s constructive to consider your tenants’ stress, time, and expense of an impending and undesired change in housing as you formulate how to present the news to your tenants. Several factors come into play regarding the best approach, such as the lease terms, your history with the tenants, and your motivation for selling the property. Read on as we explore three things you should know about selling your house with tenants in Fort Myers.
Terms
The lease terms are absolutely crucial when selling a house with tenants in Fort Myers. Understanding the remaining lease duration and any clauses related to early termination will significantly impact your strategy. For instance, if the lease has a long runway, waiting until it expires might be the most straightforward approach. However, this might not align with your timeline.
In that case, there’s another option to consider. Knowing your state’s landlord-tenant laws is important here, as they’ll dictate your rights and the tenant’s rights during the sales process. With this knowledge, you can explore selling the property with the tenants in place. This might appeal to certain investors who are comfortable managing occupied properties. Companies like Core Real Estate Properties specialize in these situations and can offer a quick cash purchase without the hassle of showings or repairs.
Communicate
Keeping an open line of communication with cooperative tenants is crucial for a smooth sale when selling your house with tenants in Fort Myers. This means being upfront with them from the beginning. Explain your plans to sell the property and the timeline you have in mind. Walk them through the selling process, including what to expect with showings and inspections. By having these conversations early on, you can address any concerns your tenants may have and gain their buy-in on the process.
The key to open communication is finding a method that works for both you and your tenants. While texting might be your preferred method, consider if your tenants might be more comfortable with emails or phone calls. Whatever method you choose, be sure to get everything in writing. This could include a formal notification of your intent to sell, a revised lease agreement outlining showing procedures, and any agreements you reach regarding tenant cooperation, like keeping the house clean and tidy for showings. Having written documentation protects both you and your tenants and ensures everyone is on the same page throughout the selling process.
Incentives
Another thing you should know about selling your house with tenants in Fort Myers is because incentives work, you can use them to your advantage. Firstly, if you’ve had positive interactions, you may want to offer the opportunity to purchase the property to your tenant. “Cash for keys” is another helpful industry standard; in essence, you’ll pay the tenant to vacate the property, typically offering moving expenses and the average amount of a security deposit in Fort Myers.
The most important thing about selling your house with tenants in Fort Myers is how a professional investor from Core Real Estate Properties can help make the process easy for investors like you. With years of experience negotiating with people from all walks of life, the team at Core Real Estate Properties can help you sell a property with tenants. At Core Real Estate Properties, our professional investors compare what you would profit by listing your investment property on the market vs. our offer, which you will agree is fair. And if you are looking for a new investment, ask a professional investor from Core Real Estate Properties about the current inventory of the best investment properties available in Fort Myers. No matter what issues you are facing with your real estate investments, Core Real Estate Properties is working every day to help investors like you solve problems. Call Core Real Estate Properties at 239-360-3176.