Investing in Portland single-family rental homes may begin with buying properties, but it’s important to keep your end game in mind. Eventually, you will want or need to sell your rental homes, and maybe a few of them may still be occupied. Selling rental property with existing tenants can be a complicated issue. Your renters may have many different opinions on the news, and you probably would not be able to foresee their reaction. But if you correctly communicate to your tenants, you can help minimize some of their dilemmas and even get them on board with the selling process.
Getting ready to discuss with your tenant about selling a rental house requires some proper planning. It is also safe to carry out some research into the local laws. Landlord laws can vary widely from place to place and may place restrictions on property owners looking to sell an occupied rental home. Before you discuss the proposal of selling with your tenant, make sure that you understand the laws in your area and that your next steps do not violate the law or your tenant’s rights. It is also essential to think about your tenant and what you know about them. That can help you to plan out how and what you say to them more carefully.
Once you have a great concept of how you want to approach your tenant, it would be better if you discuss your plans with them in person. While you can and should notify your tenants about the property’s new status in writing, things will likely go much easier if the first time they hear about it is from you directly. If applicable, think about organizing an in-person meeting or video conference with your tenant. Explain your plans to sell the house, and then give them time to ask questions.
It would be best to try and anticipate their questions ahead of time so that you have answers ready. Most of the time, tenants would like to ask if they will be forced to move when the property sells, even if their lease hasn’t expired. They will probably want to know who will be buying the house, even though you may not know that at first. If you are selling to another investor, try to update them as much as you know about the new owner’s plans, including whether the new owner will assume the current lease or require new terms. If you don’t already have a buyer, it is best to ask your tenants if they are interested in buying the property themselves. They may be willing to reside in the home so badly that they are willing to buy the property from you directly.
Conversations about selling your rental house can be very emotional for your tenants. Ultimately, selling the home they live in likely means significant changes for them. They may even feel resentful or betrayed. Those are the emotions that are difficult to manage. If your tenant does become emotional or upset, do your best to stay calm.
After calming them down, try to offer them as much time as you can to adjust to the news of the impending sale. Offering details about the expected time frame can help give your tenant a sense of how the next few months will progress and motivate them to start making any necessary plans. From there, as the agreement begins to progress, be sure to send regular updates about the sale and tons of notice if you need to enter the property with a potential buyer.
If you manage the things correctly and maintain open lines of communication, your tenant may not only accept your plans to sell; they may even be willing to participate in the process. By offering transparent communications and protection, your tenant could help make the selling process a smooth and efficient one. But irrespective of how they deal with the situation, it is imperative to respect your tenant’s privacy and to obtain their permission before showing the house.
Are you feeling a little overwhelmed with all the tasks and responsibilities of property management? See what Real Property Management Assurance can do for you! Give us a call at 971-270-2600 or contact us online today.
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