Thinking of selling my investment condo
I have a 2 BR / 1BA condo in Plaistow NH which I'm considering selling. I've owned it for about 3 years now. I think I can get $180K - $185K for the condo. The current tenant pays $1500 a month in rent and would like to stay there. If I sell, I'm thinking the tenant will need 60 or a 90 day notice if the new owner wants to live there. I haven't raised the rent in 2 years. The HOA is $290 per month.
The current tenants never signed the renewal lease last year (2021) and I never enforced it. (I know, this was dumb). Just wondering if I should make them sign a lease now, or does it really matter if I'm going to sell it? I have not yet let them know that I am going to put it on the market or find an investor who will let them stay there. Still thinking about it, but if you are an investor interested in it, please feel free to reach out to me.
Hi Glen, So are the current tenants month to month? If they are I personally wouldn't have them sign in order to allow more flexibility when selling your Condo to potential owner occupants. Just my two cents. Good luck with the Condo!
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Real Estate Agent Massachusetts (#9578821) and New Hampshire (#077579)
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Thanks Jeremy, with no lease I treat them as month to month.
I think you are limiting yourself by enforcing a new lease. In this climate, I am happy that all of our properties are currently at month-to-month. We can raise rent to market easily, and if we choose to sell with the inflated pricing still in our area, that would make it easier.
Those benefits, for us anyway, far outweigh the little security that a lease with greater terms provides.
I agree with @Jeremy Nault by leaving them as is. Just let them be TAW and the buyer can do whatever they please with them. Now the question is what will you do with the funds? Think about that before selling.
Quote from @Glenn English:
I have a 2 BR / 1BA condo in Plaistow NH which I'm considering selling. I've owned it for about 3 years now. I think I can get $180K - $185K for the condo. The current tenant pays $1500 a month in rent and would like to stay there. If I sell, I'm thinking the tenant will need 60 or a 90 day notice if the new owner wants to live there. I haven't raised the rent in 2 years. The HOA is $290 per month.
The current tenants never signed the renewal lease last year (2021) and I never enforced it. (I know, this was dumb). Just wondering if I should make them sign a lease now, or does it really matter if I'm going to sell it? I have not yet let them know that I am going to put it on the market or find an investor who will let them stay there. Still thinking about it, but if you are an investor interested in it, please feel free to reach out to me.
When you fail to sign a renewal/extension, the lease automatically continues on a month-to-month basis. Leave them at that. If the new owner wants to occupy, they can give the tenant notice and then move in. If the new owner wants to keep them, they can sign a new lease once they take ownership.
