Rental properties can be a fantastic investment. They are a great way to generate steady income for years.
This requires a lot of work for a real estate investor though, including keeping properties occupied. Also, you may decide that, for whatever reason, it is savvy to unload a property that is occupied.
Is it possible to sell a property with tenants? Is it prudent?
This article covers how to go about selling a rental property with tenants in place. Keep reading to find out how to get the most out of your Wichita real estate investment without violating renters' rights.
Is It Possible to Sell a Property With Sitting Tenants?
Most states, including Kansas, allow you to sell a property while it is occupied by tenants. However, there are specific laws that protect residents' rights during and after the sale.
First--it may seem obvious, but it is worth mentioning--you cannot force a tenant to move out. You must honor all terms stipulated in the lease until it expires or is terminated based on mutual agreement. This includes after the sale of the property as well.
Next, you must give tenants 60 days notice before showing the property or lining up inspections. Also, the sale of the property cannot interfere with the tenant's right to a quiet, comfortable home.
This means that you need to work closely with them to coordinate viewings or open houses. Failing to respect the existing rights of a tenant could open you up to legal repercussions.
Is It Hard to Sell a Property With Sitting Tenants?
Whether it is difficult to sell a rental building that is occupied depends on various factors. This includes how likely tenants are to cooperate with different aspects of the sale process. While they cannot stop you from selling the home or unit, some residents may be more willing than others to help it go smoothly.
The biggest challenge is finding someone willing to honor the existing lease and take on a current tenant. That is because most buyers want a vacant property that they can make necessary improvements to. The flipside is that, if the buyer is planning to rent the property out, they may welcome immediate income from an existing renter.
It also may depend on the duration left on the lease agreement. Especially if it is only a short time until the lease is up, a prospective buyer may have no issues.
For all the reasons listed above, you might consider hiring a professional management company to tackle selling a rental property that is currently occupied. They will ensure that the process goes smoothly and that all residents' rights are upheld.
Find Assistance Selling a Rental Property With Tenants
Now that you understand how to go about selling a rental property in Wichita with tenants in place, you can take the right steps to move forward. An experienced real estate expert can further advise you on the best course of action to sell your property quickly without violating tenants' rights.
PMI Wichita is a full-service property management company. We offer a variety of services, including marketing, tenant screening, maintenance, as well as buying and selling resources. Reach out to us today for additional landlord advice.
