Selling A Rental Property - Park City Property Management
By nature an investment property will at some point be sold. Hopefully you have planned successfully, done your leg work, and purchased a property that provides you with some positive cash flow over the term of your ownership and through appreciation you are able to sell when the time is right rather than dump a property just to get out of it. In my experience in Park City property management I have been through several sales of Park City long term rentals. I have seen many different ways of handling the sale of an investment property and I would like to share a few does and don'ts for property owners.
Do
be the first person to talk to your tenants about the sale. Obviously you have talked to a realtor and probably signed a contract. But the tenant should hear about the sale from you, not some realtor they know nothing about. If you use a Park City property management company to handle all of your tenant relations then you should speak to them directly, not through your realtor. They can then contact the tenant and get everyone on the same page. There are many quality realtors in Park City property management but the notice of a property being sold should come through an already established relationship.
Don't
sign a new lease if you are thinking about selling. I have unfortunately seen this go both ways. I had a new tenant move herself and her two daughters into a place only to have the owner turn around and put it up for sale six weeks later. I then had to inform the tenant and she broke down and cried. She had just gotten settled and would have to move all over again. Moving is a difficult prospect for anyone, so consider your tenants during the sale. If a lease is coming up for renewal and you are thinking about selling then allow the tenant to go month to month rather than sign up for another year. This will give the tenant some flexibility in finding a new place. Otherwise they can be stuck until a buyer comes along.
Do
give a minimum of 24 hour notice to your tenants whenever you need to enter the property for showings. Always be respectful of the tenant's right to privacy and remember that 24 hour notice is the law when it comes to Park City property management.
Don't
assume that if you sell the property that the lease ends. Unless your lease specifically has a clause regarding the sale of the property you should know that the buyer can be obligated to fulfill the terms of the lease. Disclose the terms of the lease to the buyer and let them know they will have to honor it. Once a tenant takes possession of a property they have certain rights under Utah law. Don't get yourself in a legal bind by not honoring the terms of your Park City property management lease agreement.
If you would like more information about selling a rental property or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
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