Selling a rental property in Colorado can feel complicated. It really is not complicated as long as you successfully manage the multiple relationships in the transaction.
The rental market in Denver is bananas right now. As a result, selling an rental property that is vacant, clean, staged and ready to go, is not complicated.
In Colorado, a lease survives the sale of a home. This is important if you wish to sell the home halfway through a lease.
The assumption is that you are reading this because you have tenants in your rental, the lease is for longer than you want to own the rental property, and you do not want to miss rental income as you market the property. You also understand the tenants are not going to necessarily help you get the most for your home.
The most common frustrations of landlords showing and selling an occupied rental are as follows:
1. The tenants do not keep it clean.
2. The tenants do not allow showings.
3. The tenants are there for the showings.
The fix for all three is to make the tenants feel respected and part of the process.
Talk to them early in the decision process so they have time to mentally plan. It is brutal to go out and rent right now, so you are asking them to take on an early move and a good bit of work finding a new rental.
Make the tenants part of your success. This is the crux of the effort and cost. Come up with an acceptable showing policy regarding time, notice, cleanliness, one open house and vacating the home. Have your real estate agent help set reasonable expectations. The offer the tenants one months rent from your proceeds at closing, conditioned upon them cooperating with the terms of the showing plan.
At the closing table, the cost of one month’s rent is small compared to the potential carry cost of vacant home. One month’s rent also means a great deal more to the tenant than to the landlord. This is a gross generalization, however, it holds up most of the time in my experience
This plan prevents you from missing rental income during the selling process. It provides an incentive for the tenants to embrace your goals. As a result, the home sale process is as smooth as possible when you are basically kicking someone out of their home.
Please call, text or email if I can help you with a home value or the marketing plan for a rental property.