Selling A Rental: How Can You Sell Your Albuquerque Property with a Lease in Place?

by | Apr 12, 2022 | Albuquerque Real Estate Talk | 0 comments

Selling A Rental: How Can You Sell Your Albuquerque Property with a Lease in Place?

(Transcript Snippet): “Tracy:

So this feeds right into the other story I wanted to get to today, we have had several investors who own properties that are wanting to sell. They feel like the market is at a high and they’re going okay, I’m ready to sell my rental. So selling a rental that still has a tenant in place. So we, we wanted to cover that because the questions come up a couple of times now with people who’ve reached out to us saying, well, how do I sell this property when I’ve got a lease in place and a tenant there? So let’s cover that quickly. I know we don’t have too much time left this week. No,

Tego:

That’s a great question. And I, I think that the first answer is if you have a lease in place, you can sell your property. If you have a tenant in there with the lease in place thing is you can’t break that lease,

Tracy:

Right? So the new buyer needs to honor the lease. So if it’s got six months or eight, eight months to go, and somebody wants to live in the house, they would need to honor that lease. So the loan, if there’s a loan to buy, it would need to be as an investment loan, not as a primary residence, if you can’t move in right away. A lot of times what we find is you’re getting our, our investors are getting close to the end of the lease terms and they’re going we’re too, or three months out, the house is gonna be coming up. You know, the lease is gonna be expiring. We’d like to make sure to sell it. When that happens. We don’t want to have to pay too many more months of the mortgage with it being empty. So how do we do that?

Tracy:

So we help structure that we kind of have a program for that too. Right? Tego. We’ve put this the plan in place. We go look at the property. A lot of times, these folks aren’t even here, right? They’re out of state or out of area. We can go look at the property, get an appointment, selling a property with a tenant in place has some pros and cons. Some pros, the tenant might have really beautiful furnishings and keep it nice. It shows really well. It photos really well, right? It could be, it happens. And and some of the cons sometimes tenants don’t wanna move out and they don’t wanna make it easy to see, and they don’t wanna make it clean and neat and attractive so they could hamper the ability to get top. So having your, having us go with you, if you’re in town or out of town and, and looking at the property and putting a plan together to see how cooperative the tenant will be, because in New Mexico, we have to give 24 hours notice to be able to show a, a property that’s occupied. There.

Tego:

There’s a lot to that. And, and, you know, tenants have, have, have rights, right? You can’t just say, well, I’m gonna sell the property and you have to allow to show it. It doesn’t, it doesn’t, it’s not that quite that simple.

Tracy:

Right? So a lot of times we’ve got the plan in place for right when the, the tenant is out. If they’re not as cooperative or they don’t make the house show as well, if they didn’t really wanna be moving out yet. But you know, there’s lots of ways to do it and

Tego:

Well, and we’ve seen deals where people purchase a home site, unseen with the tenant in place. And you know, basically roll the cars now does that, obviously they’re gonna put a, they’re gonna put a dollar value on the risk if they do that, but that people will do

Tracy:

That. That’s, that’s pretty uncommon though.