Hi All,
I’m just wanting to get peoples opinion on this. We have a rental property in Chicago that we are looking at selling.
The Realtor said we should get rid of the tenant before we sell it. Our Attorney said we are better off keeping the tenant in place as there is a risk of vandalism if vacant. The property is in fairly good condition.Interested in hearing what people think.
Regards,
PeteHi Pete
We have a company in Florida and one of our investors had a bad tenant and he decided to sell. once the tenant was gone the aircon was stolen and vandals broke in and damaged the place. So my advice would be to leave tenants in the property. Once it is vacant it becomes a target
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hi Pete
You also want to look at who your target buyer is. I am guessing it will be a landlord and not an owner occupier as the area sounds like it is predominantly renters if your concerned about vandalism.
As a landlord you always would rather buy an investment property with a tenant than one that’s vacant. That alone will enable you to get a better price as it’s generating income from day one. The other benefit is as Nigel has already outlined and you have having someone living in the property is added security for it and less of a target for opportunity theft.
Is the tenant on a month to month lease or a fixed term? If fixed you cannot insist the tenant leave but some might if you offer them an incentive of some sort. If month to month you would be required to serve the tenant with a notice advising that the property is for sale. Make sure your Realtor serves the notice formally in case you need to do an eviction. If it is renewal of lease time and you want to keep someone in the property there is a document that would require the tenants to leave if required at Closing. Why a tenant would sign one of these forms I do not know but the option is there. Try to arrange several inspections on one day, say a Saturday or whatever other day is most convenient for the tenant. Give the tenants a gift card to Starbucks or something like that so they can go and enjoy a bit of time away and also think you are a good guy.
Judith Ottosen | Outback Realty LLC
Email Me
You must be logged in to reply to this topic. If you don't have an account, you can register here.
