Here’s how to handle the selling of a rental property with an active lease.
A few investors have asked me recently: “Can I sell a property when it’s leased?” The answer is yes, but the lease goes with the property. The buyer of that leased real estate inherits that lease. If you’re selling in March and it goes through July, the new owner who inherits the lease takes it over through July. The security deposit transfers as well, as they basically step into your shoes as the new owner and landlord.
A leased property can be a good situation for a buyer. They’re stepping into a situation where they already have cash flow right off the bat. Some buyers like that.
On the flip side, investors are looking for the best deal while a homeowner might be willing to pay a little more. Do you sell with a tenant in it to another investor or wait until they move out and sell it on the open market? That depends on your specific circumstances and goals.
If you have any questions about your situation, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.