Selling a rental townhome - Howell NJ

[Alison Lawlor]

I am considering selling an out of state rental townhome in Monmouth County NJ. I have wonderful tenants that have been there for over 10 years however as I am nearing retirement, I am looking to sell. Lease is up 10/31 however they are local business people and have no desire to move, just continue renewing the lease. Question is, should I list now and market primarily to investors or should I advise tenants I am not renewing their lease ending 10/31 and then list. I know that I will have to invest in paint, flooring and countertops if I want to get top dollar but I don't know that money spent for sprucing up would net me any more profit. Will also be covering a $2k mortgage during any renovations. 

[Erica Destinvil]

Hey! May be interested in viewing  let’s chat!

[Kevin Manafi]

Hi @Alison Lawlor, as an investor and investor-agent currently selling two tenant-occupied condo/townhome units for a client, I can tell you with certainty that it will be much easier for you to list and sell your property if the tenants are not there. This goes for any property type, but definitely for condos/townhomes as typically speaking, most people buy them to owner-occupy. It will also make it much easier to make pre-listing repairs/renovations as you stated, and it will also be much more convenient for your agent and other agents to schedule and show the listing without having to work around the tenant's schedule. 

If you are dead-set on selling, I would not recommend renewing the lease as it will give the new buyer a complete lack of flexibility if they are buying a unit with a tenant in place that just signed a brand new lease term. 

[Shawn Mcenteer]

Hi @Alison Lawlor this is a tough question becuase every property is different.  At the end of the day there will not be much of an issue selling, Howell is a hot market.   Most of the time when it comes to single family or Condos you are appealing to a small crowd of investors (very niche market), on the other hand first time home buyers or forever homeowners are what are driving prices up right now.  Without seeing the property it is tough to give solid feed back but in terms of selling your property it is likely best to appeal to the masses if top dollar is your goal.  Similar answer for renovations, I need to see inside the property to know what updates will net you the most return.