Hi, my wife and I currently own 2 condos with very good tenants with leases that expire later this year. We are looking to sell both condos in the very near future to pay off debt on other investment properties we have. The tenants we have are very good and would be ideal for another investor to take ownership. However, should we or should we not tell our tenants that we are selling our condos? In the event that we can not sell our condos to another investor, we don't want to scare away our tenants in not renewing their leases for another year as they have comfort knowing that we will be renewing their leases as long as we own the condos. Looking for opinions?
I would offer them first shot at purchasing the property at the very least.
If they weren't interested or don't have the means to purchase, at least you gave them first shot and shouldn't have any hard feelings.
Just a thought.
I'm pretty sure they will figure it out when you start showing it. Every time I have a rental that goes up for sale, the tenants start looking for a new place. So, you can bet that they will vacate not too long after they find out you are selling.
Thanks Jeff and Michelle. I'm almost certain my tenants want to continue to rent and not purchase the condos, but it doesn't hurt to ask them. Of course, I don't want to lose these tenants if I don't end up selling the condos.
Owners sometimes have skewed ideas of how their tenants will behave. And owners forget to think like renters. If you were a renter, and you learned that realtors will be traipsing through your home, would you be a happy camper? Wouldn't you start checking out your options?
I agree that you should first offer the place to your tenants. If that's a no-go, they will not be happy about you selling the place, whether you told them last week or this week. If you want them to cooperate by keeping the place clean and not sabotaging showings, you should offer them compensation.
Try to pretend you are in their shoes, and what it would take to make you happy or cooperate.
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