Selling A Rental Property

Your Tenant Does Not Have To Move Out First

The house does not need to be vacant for you to sell it. Some owners sell with the tenant staying right where they are. Others plan a move-out date with their tenant first.

You will see pricing both ways. One number with the tenant in place, one with the house delivered empty. Then you pick.

You handle the conversation with your tenant, on your timing. Owners who have had the same tenant for years usually have a good relationship and want to give plenty of notice so nobody is rushed. The closing date gets planned around that, before anything is signed.

Nobody is trying to put anyone out on the street. It all gets coordinated so the timing works for you and for the people living there.

Notice rules for tenants vary by state and by city. A local landlord-tenant attorney can tell you what applies to your property.

The Rent Has Not Kept Up. Neither Has The House.

It is a common pattern. A long-term tenant, rent that stayed low because the house needed work, and repairs that got pushed back year after year because managing them from a distance was too much.

You can sell it exactly as it is. No painting, no clean-out, no hiring contractors in a city you do not live in.

And if a small amount of the right work would put noticeably more in your pocket, you will hear that too. Sometimes spending the money is the smarter move, and you deserve to know when it is.

You Do Not Need To Fly In

Many rental owners who reach out live somewhere else. Paperwork gets signed remotely. Escrow, the neutral company that holds the money and handles the closing, works remotely too.

You will always know who is visiting the property and when, so you can let your tenant know ahead of time.

If You Never Planned To Be A Landlord

A lot of rental owners did not set out to be landlords. You moved for work, or bought your next place before the last one sold, and renting it out seemed smarter than selling at the time.

Years later the house is still there, the tenant is still there, and managing it has quietly turned into a second job you never applied for.

Wanting out is not a failure. Circumstances change, and so do the numbers.

You do not need a plan before you reach out. You just need to know what the house would bring each way, so you can decide with real numbers in front of you.

Three Ways To Sell Your Rental

Every rental is different, so you will see all three side by side with real numbers. None of them gets a sales pitch.

1. A Cash Offer

You sell it as it is, tenant or no tenant. No fees, no commission, and closing costs are covered. The goal is an offer within 24 hours, and you close in 10 to 30 days or on the date you pick.

A cash offer comes in below what the house would bring on the open market after months of work and marketing. That is the trade for speed and certainty, and we would rather say it plainly.

It fits if you want a quick, simple, private sale and would rather not manage one more project from far away.

2. A Structured Sale

In some situations we can structure a sale that gets you full market value and still closes fast. Not every house qualifies, and we will tell you honestly whether yours does.

If your mortgage is in the 2s, 3s or 4s, that loan may be worth more than you think. With rates where they are today, a low-rate loan is an asset, and in the right situation it can work in your favor instead of simply disappearing at closing. In some of those situations we can pay full price for your house. Not a discounted cash number. Full price. It depends on the property and the details, and we will tell you honestly whether yours qualifies.

3. Listing It With An Agent

Justin is a licensed real estate agent in California. If your property is in California and listing is the better move, we can list it for you at 1%. Outside California we are buyers, not agents. If listing serves you better we will say so and help you hire the right local agent, rather than pretending we can do it ourselves.

The listing side is typically 2.5% to 3%. The buyer’s agent commission is separate and negotiable, and that is true whoever lists your house.

Listing sometimes nets more, and if it does for your house, you will hear it. With a rental, keep in mind that listing usually means showings, and showings mean working around your tenant.

Planning A 1031 Exchange?

If you are selling to buy another property, your deadlines matter. Share them up front.

One owner needed to sell two of his rental properties at the same time as part of a 1031 exchange. Neither house had been kept up, and he had not been inside either one in years.

We helped him sell both quickly, on a timeline built around his goals and his exchange deadlines.

That kind of timing works because your closing date is agreed on before you sign, and after that it is firm on both sides. You get a date you can plan the rest of your exchange around.

The exchange itself is handled by your intermediary, the company that holds the money between sales, along with your accountant. Justin does not give tax advice, and you should not take tax advice from anyone who is buying your house.

What Comes Out At Closing

On a cash sale there are no fees, no commission, and we cover the closing costs.

If there is a mortgage, a lien, back taxes or a solar loan on the property, those are paid from the sale at closing, the same as in any sale. Those are not our fees. They are debts already attached to the house.

An independent escrow company handles the money and pays you after closing, by wire or mailed check, your choice.

We earn your trust either way, so we have no reason to push you toward the wrong path.

Questions Rental Owners Ask

Does my tenant have to move out before I sell?

No. You will see a price with the tenant staying and a price with the house empty, and you decide which way to go.

Who tells the tenant?

You do, on your timing. If someone needs to see the inside of the house, you will know well ahead so you can let your tenant know.

The rent is below market. Does that hurt my price?

It is one of the things reflected in the price with a tenant in place, which is exactly why you see both numbers. Then you can decide whether delivering the house empty is worth it to you.

Does the house need repairs first?

No. You can sell it as it is. If a specific repair would clearly pay for itself, you will hear about it.

Can I sell more than one rental at the same time?

Yes. Each property gets its own numbers, and the closing dates can be set so they line up with each other and with any exchange deadlines you have.

Can the closing date line up with my 1031 exchange?

You pick the date before anything is signed, and it is firm after that. Share your exchange deadlines early so they are built in from the start.

Will I owe taxes when I sell?

That is a question for your accountant, and it is worth asking before you sell rather than after. Rental property has its own tax rules, and we are not qualified to advise on them.

How long does this take?

Ten to thirty days once you decide, or the date you choose. If your tenant needs time to move, that gets built into the timeline before anything is signed.

I do not live anywhere near the house. Is that a problem?

Not at all. It is one of the most common versions of this. Paperwork and escrow are handled remotely, and nobody needs to travel unless they want to.