Author Topic: Keeping or booting tenants before putting house on market?  (Read 465 times)

pdxvandal

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Keeping or booting tenants before putting house on market?
« on: August 07, 2017, 01:10:42 PM »
I'm considering selling my rental property next spring in Portland. I've had renters in there for about a year, but wondering if I should ask them to move out a few weeks before I put it on the market.

Have others on this board been successful selling a house that already has tenants? It would definitely show better empty/clean without tenants there, but this particular market remains fairly hot (which could change), so not sure it would even matter. Plus, I do like the idea of maximizing rental cash flow and lowers risk in case the house doesn't sell for 2-4 months. I'm on the fence, but leaning toward keeping the tenants in there until it sells. Thoughts?

therethere

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Re: Keeping or booting tenants before putting house on market?
« Reply #1 on: August 07, 2017, 01:25:04 PM »
Are you trying to sell it as an income property or a regular house? If it's not a multi-unit property (where having it fully rented is an advantage) then give the tenants cash for keys to get out prior to putting it on the market. It's incredibly selfish, and poor strategy to have tenants living in a house on the market. It's essentially your tenants that would be the ones selling the house (keeping it clean, leaving and setting up showings, etc.) without any of the power or incentive to do anything. Which is awful, because they deal with all the nonsense for none of the reward.
« Last Edit: August 07, 2017, 01:28:24 PM by therethere »
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pdxvandal

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Re: Keeping or booting tenants before putting house on market?
« Reply #2 on: August 07, 2017, 01:28:10 PM »
It's a single-family home and don't plan to sell it as a rental property.

Good advice.

And sorry for the double-post (network issue).

srad

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Re: Keeping or booting tenants before putting house on market?
« Reply #3 on: August 07, 2017, 01:35:37 PM »
Portland recently passed a law requiring us to pay a relocation fee of up to $4500 (based on unit size).  If you only have one rental you are exempt from this fee.  So this alone is reason enough to sell it vacant.  Only time I'd leave it occupied is if it will be used as a rental and you are close to market rate.

Since you said it will be sold as a single family, you should ask them to move out.  It will show better vacant and you'll potentially get more money. 

btw - i'm acutally looking for another home in Portland, where is this thing at? pm me.

kellyincville

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Re: Keeping or booting tenants before putting house on market?
« Reply #4 on: August 07, 2017, 03:36:32 PM »
Portland recently passed a law requiring us to pay a relocation fee of up to $4500 (based on unit size).  If you only have one rental you are exempt from this fee.  So this alone is reason enough to sell it vacant.  Only time I'd leave it occupied is if it will be used as a rental and you are close to market rate.

+1

LaurenR

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Re: Keeping or booting tenants before putting house on market?
« Reply #5 on: August 10, 2017, 09:22:29 AM »
Just finished selling my rental house, had tenants leave before marketing and I feel it was a great decision.  Feel I could more clearly see what repair work needed to be done, which resulted in NO issues come inspection.  House under contract in 2 weeks in a tepid area market.