Selling my duplex with tenants in place, need some advice

[Pablo R.]

Hello fellow BiggerPocketers,

It's been a very interesting road the last 6 years that I've owned a duplex in the city I live in (Columbus Oh).  Thank you to all the people that supported me in the early journey, a special thank you to @Marcia Maynard; she went the extra mile and even extended her direct contact to offer advice. Also her landlording with integrity seminar made the most impact in the way I approached all ladlord-tenant issues I  encountered and highly recommend it.  Being a landlord has provided very valuable lessons about persevering, being honest, treating people with respect, and being firm. And that when unsure, accept that you don't know and it's OK to seek professional advise (here, and from a legal professional).

Life has taken a turn and I need to exit, for now, as I know I'll most likely come back to it again, and it's time for me to seek fellow advice on some things that are yet unclear.  So below is my situation......

I have long term tenants in the duplex and have decided that I will leave in place, the real estate agent that I'm working with has confirmed that given the current market he sees no issues with that decision. However, I am now trying to understand what really happens to the Rental Agreement once the sale is complete and the overall things to consider as the sale goes through.  Here are some key points and my questions.

- The tenants on both sides are month to month, my rents are just a bit under the market.

- I am planning to have a conversation with the tenants to let them know what is coming; I don't foresee any issues, but one never knows.  I've always been honest and upfront about everything (good and bad) and they are happy where they are (they've expressed that). Should I make this formal via a written Notice and provided it once I have this conversation?   Any advice on how to approach this would be much appreciated!

- I'm assuming that the buyer will want to see the entire Rental Agreement as part of his/her due diligence.  Is it advisable to disclose this documentation?  Is said Agreement "transferable" with the sale of the property?   Or does it become null once the sale is complete? 

- Can the buyer actually turn around and continue using my Rental Agreement? 

- I understand my obligations as a landlord continue up to the time the sale is complete, are there any considerations I should make when that point is reached, or from that point on is the buyer's ball game?

I'm sure there's out here someone that can help me understand some of this and perhaps give me a few other good pointers.

Thank you for taking the time reading my post and look forward to your feedback.

Pablo

[Brandon Sturgill]

@Pablo R. this is the template we give o all tenants in this situation: https://drive.google.com/file/...

Your tenants are month to month...so, the new owners can keep them or issue notice of non-renewal...this is per Ohio Revised Code and notice must be given at least 30-days prior to the rental due date (nobody ever gets this timing right and usually ends up violating tenant rights without knowing it)

A standard due diligence period should be in place...this is really a check list exercise...the buyer would typically request financial records and leases for at least the last 12-months- this is pretty standard.

An estoppel may be executed if they are using a lender, but not always...these aren't normally part of the transaction on small MF.

The rental agreement stays in place, but can be replaced by the new owner with a new lease for term...or amendments could be added for rental increase...passing utilities back to tenants, etc.

All things constant, just do what you have been doing until the property closes...your duty ends when the property sells.

Here is the 1-pager we use to guide a buyer through due diligence: https://drive.google.com/file/...

Let me know if you have any follow-up questions and best of luck