Los Angeles , CA · Member since 2018 · 100 posts · 19 votes
How do I approach selling a tenant occupied property to a non investor? If I have to wait for the lease to expire, is there an accepted clause in the lease that can be added for this case scenario?
Bakersfield, CA · Member since 2016 · 378 posts · 307 votes
8y
If they are on a long term lease, then whoever buys it will have to honor the rest of that lease. The best thing to do if you want to sell now to an owner occupant is negotiate a deal with the tenants to leave early. The tenant and you can amicably agree to end the lease early, and they may be willing to.
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
There are two types of housing buyers. Owner occupied and investor. Since you don’t want an investor you want owner occupied, which they can’t occupy since there are tenants there.
So to answer your question no not really. Sell to an owner occupant and assume you’ll have to deliver it vacant by closing
Rental Property Investor · DFW, TX · Member since 2013 · 953 posts · 910 votes
8y
It will not work out that way. An owner occupant will not be willing to evict a tenant. Hell even as an investor sometimes I don't want to inherit a tenant.
Best case is you let the lease go month to month and tell your tenant you are selling. Once you get it under contract give the tenant notice and set the closing date for after the move-out date. However if they don't move out in time or damage the place you could be on the hook. Best thing to do is wait for the lease to end, get it cleaned up and put it on the market. Better to lose a few month's rent than the whole deal.
Bakersfield, CA · Member since 2016 · 378 posts · 307 votes
8y
If they are on a long term lease, then whoever buys it will have to honor the rest of that lease. The best thing to do if you want to sell now to an owner occupant is negotiate a deal with the tenants to leave early. The tenant and you can amicably agree to end the lease early, and they may be willing to.