Tenant Wants to Raise Rent to Hold off on Selling Property

[Jake Zhang]

I'm relative new in REI and have ran into this situation that might need some perspectives.

Given all analysis and indicators, right now is a good time to sell in the Atlanta metro market. I have a condo that I bought back in 2015 and have appreciated over 35 percent since, and I want to sell it now and use the extra to purchase more properties (although might not be right away with the current market condition). I have a PM on this property and he does all the communication for me. Based on the PM, the tenant offered to raise the rent by $100/mo to hold off until the end of the lease term (Dec of this year). He's a really good tenant, always on time with payment with no nonsense issues, had him for 2 years and counting. Although 100 extra each month is good from a cash flow perspective, my concern is that a recession might hit in the near future and I may not get as much value out as I would now. Also, winter times are generally harder to sell compare to summer times (purely from my experience). My originally plan was to sell it and start purchasing small MFR if I can find a good deal, again not anticipating a good deal anytime soon with sellers market.

What should I consider? Should I negotiate for more rent (150-200), take it as is, or ignore and follow my original plan?

[Bob B.]

@Jake

@Jake Zhang Are you expecting to sell the property occupied or vacant.  If you sell It occupied then you will not get retail for it.  The only way you can sell it vacant is if the tenant defaults on the lease and you evict them or they leave on their own.  The lease goes with the property.  You can not just kick them out because you think there is a recession coming and you want to sell.  On the other hand they can't just up and leave for the same reason.  Sounds like they are honoring their end of the lease and you should also.