Best Strategy for Selling Rental Property

[lovinLife]

Here's the scenario:

Bought a place in 2006 that seems to have finally regained its original value.  It was a primary residence that we have since rented out since we moved away from the area.  We have a tenant in place with a lease until next April (they just moved in about 2 months ago).  We are seeing comps at values that make us want to sell this place and move on.  We're not looking at making much money just looking to get out while the market seems to be turning around (at least temporarily).  So now seems like a good time to sell...except that we have this lease in place.

What's the best strategy to sell this place?  Sell with the lease in place to an investor and potentially cut out many buyers looking for a primary residence, incentivize the tenant financially to move out upon sale...??

Any advice appreciated.

 

[cubiczirconia]

I am sure your lease has a clause where you pay a certain amount to the renter if you want them to move early (breaking lease clause- it has something for both parties)
Two months of rent and a good chat with your renter to convince them to move should help otherwise?

ETA: If you put the house on market with renters staying, they usually don't cooperate with the Realtors/ buyers.

Good luck!

 

[usctrojancpa]

There are many listings are that tenant occupied (grant it, most of them with tenants on month-to-month leases or leases expiring within 1-2 months).  Obviously you can list the home and require the new owners assume the lease which they will have to (but may not be able to if they are financed buyers) which will attract a lot of investor buyers.  That being said, this is a sellers market and buyers are willing to do almost anything to buy a home so even owner occupant buyers will try to buy the home.  Either you or the new owner can negotiate with the tenants to mutually early terminate the lease (obviously that'll involve some kind of benefit provided to the tenants for them to sign off on it).  Let me know if you have any other questions.