As a New York landlord, you likely have many prospective buyers who’d like to purchase your rental property from you. While a good offer may entice you, you may think that accepting such an offer is out of the question if you have tenants in your unit signed to a long-term contract.
Fortunately, you have options even when you have tenants residing in your property. You may want to weigh the options available for dealing with your tenants since each has its series of pros and cons associated with it.
Selling your investment property to another landlord or an owner-occupant
You might think that another landlord would jump at the idea of buying a rental property that already had a tenant in place. While that may be the case with some landlords, others may prefer your rental to not have any residents at the time of the purchase.
Your buyer may prefer to select a tenant and negotiate the lease with them. They may also want the unit to be vacant so that they can initiate immediate repairs. You may find yourself needing to terminate your lease with your tenant to avoid your prospective buyer pulling out of the purchase of your property.
What if someone wants to buy the unit and live there? That may also warrant terminating your rental agreement with your current tenant.
Terminating a lease may be more challenging than it seems if there’s considerable time left on it. You will want to weigh the prospect of having to pay hefty termination fees versus getting your buyer to sign an agreement to buy the home once the tenant’s lease ends.
What to do if a tenants’ residence in your property is affecting your ability to sell it
Many landlords don’t enter into a rental agreement intending to sell their property. A change in life circumstances or an irresistible offer may lead you to need or want to sell your rental property, though. An attorney can advise you of your options for doing so, including any benefits or downsides to choosing one option over another.