My California Rental, sell now?

[Kelly Pierce]

I have a rental in CA where I live that I bought 2 years ago. Now that I’ve joined BP I realize it’s not a good rental investment (thanks to the calculators-although I pretty much knew).

I just signed new renters to a lease mid-October but I can see 1. It’s not a good rental.

2. Our market has all the indicators we may see a drop before long in prices.

Luckily it’s CA and in 2 years I saw a $50k appreciation at least.

Question is can I sell now legally and then if so how do I keep the tenant from being pissed at me and doing damage. I have a $2500 deposit and they had excellent credit so I’m hoping that’s enough and if I try to help them find a place. (I’m a realtor here so that might help).

Thoughts - Suggestions??

[Sasha Mohammed]

@Kelly Pierce i was actually the tenant in a similar situation not too long ago. It is difficult being in those shoes and having the home sell out from under you. it's invasive, it's stressful, and it's expensive. The good news is California properties tend to sell quickly if priced right, although you know the real estate market better than I do in your specific property's area. 

Cash for keys is not a bad option if you think you can come to an agreement with the tenants. Waiting out the lease isn't always in your best interest, especially if you think the market is softening. It may be worth it to offer them something like their deposit back in-full immediately, along with moving costs (idk $300 for a moving truck?) and an extra $1000 toward their new rents/ deposits (just throwing something out there, i'm sure you can find what works for you to offer them). Get creative if you need to. But showing that you're willing to work with them will go long and far when it comes to them working with you on the sale (them accommodating showings and open houses). 

I read a horror story on BP not too long ago about a tenant that knew his rights, and followed them, but would do things just to make it uncomfortable. example, he would be in solely his bath robe for showings. It seems ridiculous but its not uncommon... or illegal, so tread lightly. Cali is very tenant-friendly, so if you go this route, make sure to consider the tenants and their needs. Even if just for the purpose of protecting yourself.