Is a property worth more under lease?

[Arthur Michael Lum]

My question is: Is a property worth more if there is a current lease with long term tenants?  

My initial thought is that will shrink my market by scaring out folks looking for a primary, but as a landlord finding tenants who don't complain about anything and pay on time every month is valuable.  I really want to keep this property/tenant but at the same time want to grow my investment and looking to do that buy purchasing a bigger property with a 1031 exchange.

I purchased for $115k and for what it is worth, zillow has it for $300k  I am currently renting it for $1,200/mo but market shows I can ask for $1,500/mo.  Lease ends in July.  Need some advise if I would sell with good tenants in place or let the lease expire and sell empty.  Thanks BP!

[Mark Hughes]

It depends on the rent. Long term leases keep turnover down and are more efficient from a profitability stand point but the valuation on a property (especially anything 5 units or more) is tied to that lease so an investor looking to value-add would prefer shorter term leases so they know they can improve and increase rents over the next term.