Are you ready to sell that investment property, but unsure what to do because it’s currently being rented? You have options, but first you need to understand the legal restrictions on selling a property while a tenant is renting it.
Most states do not see selling the property as a valid enough reason to terminate a lease agreement early. So if there is still a set term on the lease, you may need to wait the tenant out before selling. Otherwise you can offer to pay him or her to vacate early.
For tenants on a month-to-month lease, be sure not to violate local landlord-tenant statutes that set forth the proper notice requirements for the tenant to vacate the property. These normally range from 30 to 60 days.
If you do move to sell the property and the buyer wants to occupy the house and have the tenant leave, your options can be limited. Landlord-tenant laws can vary by state, county, and even municipality, and some jurisdictions are especially protective of tenant rights.
If a buyer wants to keep the property as a rental, however, having an established tenant can be seen as a benefit. The old lease terms can remain in effect through the sale, and the tenants and new landlord can then sign a new lease when the old one expires.
Before you take any action, it’s best to consult with an experienced real estate attorney.