selling while tenant occupied

[Scott Rovner]

I have a first time time land lord. I am fortunate to have a wonderful tenant in place. I am considering selling my property. The lease expires 6/30/24. I should have 200K plus in equity. My living situation is i rent a house with mt wife and 3 young children. My in law also live with us about 6 months out of the year. within the next 12-24 month and am looking to buy a larger home that can accommodate all of us. I am hope interest rates will be more manageable by then. My cousin and I are also looking into going in together on an airbnb property in the poconos. With the profit I can potentially get back I'd have more than enough to accomplish this. My main issue is should i sell while it is occupied or wait until the lease is coming up. I was planning on seeing if they are interested in buying it first. Any thoughts would be greatly appreciated. Thanks

[Richard F.]

Aloha,

Selling an occupied property leaves a lot of money on the table usually. It is much more difficult to show; Tenants sometimes say things to discourage buyers; prospective Buyers can't "see" through the Tenants personal property; and of course, investor Buyers never pay retail!

You would be better of giving the Tenant notice NOW that you will be selling and they will have their current agreement non-renewed. They will have to move, BUT you will allow them to vacate any time between now and then, without penalty, and with full return of their deposit on moving day.

Use the additional time you gain to freshen up the place, with interior paint (nothing fancy, just a clean, blank canvass that Buyers can easily match to their own taste) and minor repairs, possibly also flooring throughout for a cleaner, unified look; and clean it spotless, including windows and screens! Make sure everything is functional also. Now it can be very easily shown and will impress potential Buyers, helping you to get top dollar!