I'm ready to sell. Tenant isn't ready to move.
I'm ready to sell my investment property. It is a single family home, 4 bed, 3 bath, on 3/4 acres, with a second garage, detached, that can store two RVs. The value has gone up and beyond what I initially paid for it. I also could use the extra cash right now as an additional safety net.
I made an error in the beginning researching the going rates for rent and have been taking a loss every year for the past nine years. Property taxes have increased substantially based on the recently appraised value, so my refinance, which seemed to finally put me in the black, actually resulted in payments just as high once the taxes caught up.
My current tenant is on a month to month lease and has paid almost every month, usually on time. She got behind once and was afraid she couldn't catch up, so I told her not to worry about the month she missed, that we'd just move on from the present as though she was current.
We've had a good working relationship. Anytime anything goes wrong with the property, I take care of it immediately. She often repaired things herself and then let me know afterward. I'd always tell her to deduct the cost of the repairs from the rent, but she seldom did.
I readily recognize I am not the best person to be a landlord. I should have raised her rent a little each year to begin offsetting some of my losses. I never charged late fees. I also did not regularly inspect the inside of the house because I felt like I would be intruding on her home. All hallmarks of somebody not cut out for this stuff.
Now, I'm expecting interest rates to go up, which could cause a correction in the market. It's the right time of year to sell quickly and for top dollar.
I had my realtor inspect the property and he told me that she has her father in the house on hospice care. He said the smells are difficult to handle. The carpet and walls need replacing and painting. The kitchen needs some work. And there is dirty laundry and trash strewn all around the house. The yard has been kept up decently.
Up to this point I was considering allowing her to stay in the house until I found a buyer. For obvious reasons, I can't do that. My realtor let me know that a vacant house with fresh carpet, new paint, and a clean yard will sell quickly and will fetch a better price.
He spoke to my tenant and then told me that her plan was to find and purchase a new home. Knowing this, I went to her and offered to give sixty days to vacate rather than thirty. She acted shocked and told me that they haven't even started looking. She let me know that escrow itself usually takes 45 days; that they don't have the money saved for a down payment yet. Then she explained that because she works so much, she was taking things slowly and didn't realize I wanted to move so fast. Right now I'm trying to get her timeline from her.
I'd like some outside feedback on how I ought to proceed. I recognize that she is dealing with a lot and I never intended to cause her trouble. However, I need to get out of the property, eliminate my risk, and stop the losses. I thought sixty days was very generous.
If we don't up agreeing, what are my options?
Thank you all for your collective wisdom.
Steve