I need advice please

I need advice please

Damir KamberPro Member
Investor · Roswell, GA · Member since 2014 · 234 posts · 97 votes

Alright my fellow investors, I need some help with the current situation I am in. My wife and I are looking to sell our condo in the midtown Atlanta area. We have a tenant who has been renting from us for almost 3 years (will be 3 at end of her lease in July). We verbally communicated to her at the beginning of April that we are going to list the property and she expressed some interest in buying it, however nothing came out of that since she wants to move out of Georgia. She moves out at end of July. 

We need to list this property as soon as possible so that we are not losing any out of pocket money after she moves out. She has told us that she will be out of town until the end of May and wants us to wait until she comes back to list and start showing the property. She prefers to be present for the showings. The difference in opinion being 2 weeks, since we are looking to list/start showing no later than May 15th. 

She has been a great tenant for us and has truly taken care of the condo like if it were her own. We are torn...............please help!!

Our questions are:

1. Are we obligated to provide her with a written notice that we will be selling the condo even if she will be staying until the end of her lease, plus 15 extra days which she asked to extend? 

2. How do we convince her that we will be showing our condo without her presence and not have her lose sleep over it (my sales people, where you at)? 

3. What other advice/strategies do you all have that will help us ease the transaction while accommodating all sides? 

Very important factor that is to be considered currently is we just had our second daughter and our older one is 2 and a half. My wife is about to go back to work in two weeks. We want to make this process as smooth as possible and try not to affect our current survival mode at home. :) 

Thank you in advance for taking time to chip in!

Cheers,

Damir  

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San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
10y

@Damir Kamber First, does your lease have anything in it that says you can enter the unit to show it, or with a certain amount of notice, etc.?

If not, Georgia law says the tenant can refuse you unless it's an emergency.

In GA, the lease decides details.  But, the fallback law, if the details aren't in the lease, is that you can't enter unless it's an emergency - or with tenant's permission.  According to this document, on page 13:

http://www.dca.ga.gov/housing/housingdevelopment/p...

You aren't required to give her any notice of selling it, from what I could find.

As far as getting her to accommodate you?  Money usually talks.  Offer her some free rent - maybe free rent for the two weeks she'll be gone while you want to start showing it?  If that would be worth it to you, it wouldn't hurt to ask.

Keep in mind, if your lease doesn't address it, it looks like she can refuse to let you show it until she vacates.  But, in my experience, money talks.  And if she is looking to move out of state, she can probably use more money.  I know some landlords pay tenants for allowing showings, if the tenants are uncooperative initially.  It usually works.

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  • Real Estate Agent · Seattle, WA · Member since 2016 · 3 posts · 1 vote
    10y

    Hi @Damir Kamber. Until the day her lease is up, you have to play by her rules as far as showings are concerned, at least here in WA state (I'm assuming that Georgia law is pretty similar). The only other thing I might add is that all the showing activity is logged into the keybox if its a listed property with a realtor keybox, so she can be rest assured that only buyers with licensed realtors will have access to her condo. Another thing, it is both non-traditional and also very awkward for her to be present in the condo during showings so if that's what she wants, I would explain to her that it can really weird buyers out when the tenant/owner is present during the showings.

    Unless you have authorization to show the condo until she arrives back in town, you'll probably be violating your state tenant/landlord laws, and if she absolutely won't budge, just wait the two, weeks. Then once she is out or month to month, you can show the condo and have a little more say. Most of the time if there's a good relationship with the tenant, they are typically flexible with showings, given that they get plenty of notice someone will be coming by. Hope this helps!

  • San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y

    @Damir Kamber First, does your lease have anything in it that says you can enter the unit to show it, or with a certain amount of notice, etc.?

    If not, Georgia law says the tenant can refuse you unless it's an emergency.

    In GA, the lease decides details.  But, the fallback law, if the details aren't in the lease, is that you can't enter unless it's an emergency - or with tenant's permission.  According to this document, on page 13:

    http://www.dca.ga.gov/housing/housingdevelopment/p...

    You aren't required to give her any notice of selling it, from what I could find.

    As far as getting her to accommodate you?  Money usually talks.  Offer her some free rent - maybe free rent for the two weeks she'll be gone while you want to start showing it?  If that would be worth it to you, it wouldn't hurt to ask.

    Keep in mind, if your lease doesn't address it, it looks like she can refuse to let you show it until she vacates.  But, in my experience, money talks.  And if she is looking to move out of state, she can probably use more money.  I know some landlords pay tenants for allowing showings, if the tenants are uncooperative initially.  It usually works.

  • Developer · San Diego, CA · Member since 2015 · 1k+ posts · 1k+ votes
    10y
    Damir Kamber Did you live in the condo prior to her 3 year rental period? If so, I'd be dramatically concerned about the 3 year period invalidating your exemption when you sell the place.
  • Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes
    10y

    @Damir Kamber - From several previous scenarios I've had, @Account Closed has pretty much summed up exactly what to do.  If that is not in black and white in your lease, then it's her residence and it would be illegal for you or others to enter her residence without permission.  NOT likely anything bad would come of it especially if you've had such a good relationship with her.

    I'd definitely try to work with her from the start.  Get her to agree to showings in the evenings and weekends.  I'd have the agent post your phone number in the private remarks and request either by appointment only (which I hate, limits showings) or at least an hour notice.  Then you can directly call your tenant.  If you get push back from her after one or two showings, DON'T DELAY, act immediately with the incentive or else you'll be left trying to be nice and weeks will go by with no activity.  

  • Investor · Alpharetta, GA · Member since 2015 · 241 posts · 185 votes
    10y

    I agree with the above. One thing I must add: everything must be in writing in real estate to be enforceable. Therefore, you must give her notice in writing. In Georgia, I understand the law says you must give this notice a minimum of 60 days in advance if you not continuing the lease. (I use this same 60 days to mention rent increases as well, prior to any lease expiration date). This gives her the necessary time to decide whether to buy the property from you- or vacate at the end of the lease. I would give her notice now - to start the clock, so she cannot argue that she didn't have the proper notification.

  • Property Manager · Cumming, GA · Member since 2015 · 261 posts · 199 votes
    10y

    Put yourself in her shoes.  How would you like to be treated and go that route.  It will work out best for everyone that way.      

  • Damir KamberPro Member
    OP
    Investor · Roswell, GA · Member since 2014 · 234 posts · 97 votes
    10y

    Thanks everyone, this is all such tangible information! 

    @Account Closed could you please elaborate further on what you mean by 'dramatically concerned about the 3 year period invalidating our exemption when we sell the place'?? 

    We are putting everything in writing and sending to her certified mail by tomorrow. We are also putting ourselves in her shoes (maybe even too much) and are looking for a win-win scenario. Looking forward to more great content, thanks everyone! 

  • San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y
    Originally posted by @Damir Kamber:

    Thanks everyone, this is all such tangible information! 

    @Account Closed great content, thank you for taking your time. The lease states that we can enter the condo at any time without the tenant's permission but it does not specify anything about showings. Would that be considered the same thing? 

    @Justin R. could you please elaborate further on what you mean by 'dramatically concerned about the 3 year period invalidating our exemption when we sell the place'?? 

    We are putting everything in writing and sending to her certified mail by tomorrow. We are also putting ourselves in her shoes (maybe even too much) and are looking for a win-win scenario. Looking forward to more great content, thanks everyone! 

     Damir, Does it give a reason for entering?  You may enter at any time...for emergencies?  Or any other specific reason?  If not, looks to me like you're home free!  You can still be nice - but firm - about it.

  • Developer · San Diego, CA · Member since 2015 · 1k+ posts · 1k+ votes
    10y

    @Damir Kamber If you've lived in a property for 2 of the past 5 years and you sell the property, you don't have to pay taxes on your capital gain (in most cases).  If that situation applies to you, that's potentially a $50k unnecessary expense by delaying a sale any longer.

    http://www.nolo.com/legal-encyclopedia/the-250000500000-home-sale-tax-exclusion.html

  • Venice, FL · Member since 2015 · 34 posts · 3 votes
    10y

    Having a tenant present at showings is a disaster waiting to happen.  Give her written notice it is being sold and that it will be shown with advance notice to the tenant.  Your original lease should have covered this situation.

  • Investor · Sharpsburg, GA · Member since 2016 · 8 posts · 6 votes
    10y

    whether the verbiage is in the contract or not Georgia courts have a habit of favoring the tenant when it comes to push a snd shove, especially a female tenant. I have lived through this nightmare and going through it again presently. my contracts are very clear (ironclad). but it doesnt matter, tenant laws in GA will always favor over the contract when a tenant expresses her rights have been violated. Your best bet is to address the idea with her directly, in person and express she would be provided a 24 hours notice prior to showings. Provide her some leverage and show her you are open to only showing on weekends or a couple days a week. most tenants will be more open to showing when they feel they have some control. Hope it helps this helped me..

  • Damir KamberPro Member
    OP
    Investor · Roswell, GA · Member since 2014 · 234 posts · 97 votes
    10y

    Great feedback, everyone. Thank you so much! 

    I reviewed the lease and it does say that we can enter the condo at any time when it becomes listed for sale. We have agreed with the tenant that we will list and start showing after she comes back from her out-the-country trip. This way we have accommodated her needs which will allow us to be more flexible when it comes to the showings. 

    Cheers,

    Damir  

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