Purchasing a new property; renting the old

4 Replies

Hello all!

Background: I currently have an owner occupied house that I am thinking about turning into a rental. I intend to purchase another property and occupy it.

I spoke with a lender and got pre approved. He mentioned that I will need a signed lease prior to closing on my new property.

Anyone have tips on getting a lease prior to moving out of the property? I do not want to have a lease and then we are not able to close.

Maybe make the lease contingent on the property closing?

Help!

Hi Christopher,

I had an owner occupied property previous which I successfully rented out prior to moving out. I waited until the escrow closed on the new property before putting the current property on the market for rent. I prepared ahead of time and cleaned up the place, etc. to get it ready for showing so by the time escrow closed I advertised it right away. I was able to find a tenant within 2 weeks.

I found this to be less headache for everyone and it gave me time to find the right tenant and to get ready to move to out.

Good luck!

That makes it tough. I'd ask to the lender what other options are there. From a renter perspective if I sign a lease, but say the loan doesn't go through on your new property, then I'd be stuck perhaps with no place to live. One option is to have perhaps provide a discount (or free) on first month rent, which may entice the renter?

Find a vacation rental or other temporary quarters so your tenant can be under lease and move in, thereby freeing you up for a new loan.

Sometimes you have to do things you don't want to do.