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Selling a tenanted property comes with a wrinkle a vacant sale doesn't: the lease itself. Here's how to think through it.
Month-to-month leases are the easier case — typically 30-60 days notice ends them cleanly. Fixed-term leases require either selling to an investor who's willing to honor the existing lease, or incentivizing the tenant to move out early. Some leases include early-termination clauses that can help here. Either way, tenant rights under the Fair Housing Act need to be respected throughout the process.
If you're dealing with a difficult tenant, eviction is an option, but it can be a long, arduous process. Selling directly to an investor lets you skip the eviction process entirely — the buyer either takes over the existing lease or handles the eviction themselves as part of the deal.
Selling directly to an investor in general is often the smoothest path with a tenanted property: investors are frequently happy to take over a property with tenants already in place, since it saves them the marketing and screening time, and it avoids the listing, showings, and added tenant tension that come with a traditional sale.
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