Background Image

Sell property with tenant or vacant?

Discussion in 'Real Estate Discussion' started by Chad9219, Sep 10, 2017.

  1. Devin7384
    Offline

    Devin7384 Devin Roberts - Brent Roberts Realty REIN Member

    Messages:
    8
    Likes Received:
    7
    Trophy Points:
    3
    If you are still wondering, usually the buyer will say whether they want it vacant upon possession or not. Can ask them and make it their choice. Always better for you to keep tenants in as long as possible while in your hands just in case it does not sell right away. Buyers for multifamily and investment usually want it occupied to calculate rents and so they don’t have to rent it out. Even if it is an investment property, if the rents are low some or property is in bad condition, new owners may ask for vacant possession to renovate or up the rents. I would suggest keep as occupied as possible for 4plex or multi family


    Sent from my iPhone using myREINspace
     
  2. Sherilynn
    Offline

    Sherilynn Well-Known Member REIN Member

    Messages:
    2,723
    Likes Received:
    517
    Trophy Points:
    113
    Another factor to consider is whether the property could use renovations to generate higher rent. If the property is quite dated, the buyer may prefer vacant possession to renovate for maximum rent. If the property is in good condition and can already be rented for premium rent, a buyer may appreciate excellent tenants in place. If you perform careful screening and can demonstrate that, it could be a selling point.

    BTW, I wouldn't mind some details on it. Always looking to buy. :)
    Sherilynn@QDHomeQuest.com
     
  3. Sherilynn
    Offline

    Sherilynn Well-Known Member REIN Member

    Messages:
    2,723
    Likes Received:
    517
    Trophy Points:
    113
    Perhaps, but in this case it sounds like the property is already vacant and the potential seller is wondering whether to find tenants before selling. Finding tenants, listing the property for sale, and then booting out the tenants shortly thereafter is not the best idea. :)
     
    ThomasBeyer likes this.
  4. Michel Lafleur
    Offline

    Michel Lafleur New Member REIN Member

    Messages:
    11
    Likes Received:
    6
    Trophy Points:
    3
    As a Realtor, my preference would be to sell this property with 3 units rented (ideally at or above market rents) and 1 unit vacant & easy to show.
    For buyers, this is perceived as less risky because it has some monthly income. .
    If your plan is to renovate & uplift, you can start with the vacant suite. From the existing tenants, you could move the ones you wanted to keep into your freshly renovated unit with higher rent.
    And if the buyer really wanted vacant possession, they could still negotiate this with a long closing (presumably need 3 months notice to vacate for existing leases.)

    And yes, 4plexes are typically considered as residential real estate. Commercial financing looks more at the property & income (not so much the buyer), whereas with residential financing many buyers would want to use the rental income to increase their finance-ability.
     
    ThomasBeyer likes this.
  5. Rickson9
    Offline

    Rickson9 Well-Known Member Registered

    Messages:
    1,099
    Likes Received:
    35
    Trophy Points:
    48
    “3 units rented (ideally at or above market rents)”

    ... but advertised as “Current Tenants are Long Term Paying Below Market Rent...Upside Opportunity on Rent!”

    Lol
     
    A & H and ThomasBeyer like this.

Share This Page