My tenants just renewed their lease for one year. However, right after they did, I got notice that my monthly payments will go up by $450!!! I would like to sell the house since I don't want to put in $600 a month every month into it for another year (I was already putting in $150 a month).

Can I sell the house despite the fact that the tenant has a lease? The house is in Dekalb County.

Thanks!

I bought the house 2 years ago and had negative cash flow of $150 a month, which was manageable since it is an intown house. I bought a 30-year fixed.

However, Dekalb County suddenly reassessed property values and the $450 extra a month compensates for the tax shortfall for 2008 and the need to cushion my escrow account. This is a common scenario. Some people's taxes have increased 75% since 2007.

Same thing is going on in Gwinnett County. Luckily it didn't happen to me, but a lot of people have had major tax increases.

You have every right to sell the house while there is a tenant in place. You sell the tenant with the house and the new owner decides what to do with the tenant in most cases. Usually the tenant will leave while the house is for sale. Since they just signed a new lease, if I were you, I'd offer them the chance to walk away with the proper notice and the rent paid. If they want to stay for the time until the house sells, I'd offer them something at move-out. This is going to be something that's a headache to them and to you because hopefully you'll get a lot of showings.

What makes you think that you're going to be able to sell a house for the same price you paid for it, in a tremendous recession, when the monthly cost to own the home for someone on a 30-year mortgage has increased by $450/mo?

Well, for one thing, it is in a desirable, in-town area with good schools and a mile from 2 major highways. Also, if the buyers buy it as their primary residence, they will get Honestead Exemtion, which will reduce the tax bite quite a bit.

I just saw in the lease a provision that says the owner cannot cancel the lease without mutual agreement with the tenant :(

The answer to your question is YES--you can sell YOUR property any day of the year--if you can find a buyer--more power to you. The lease--and the tenant--go with the house to the new owner. You have to disclose to house hunters that there is a tenant in there with a lease that will have to be honored! Therefore the buyers cannot move in and use as a residence. That fact alone will limit your buyers.

What 'I' would be doing in your situation is to immediately start hunting to re-finance at a lower rate! There are all sorts of new lower rates being trumpeted now. Spruce everything up, clean and shipshape. Hire your OWN independent appraiser to give you a new appraisal. List ALL of the changes and upgrades you have made in the last 2 years. That, combined with the fact that you can show a fixed additional income (rent) is a good bargaining platform.

Good point, Lynda. Thanks. I will work on that. We will all probably look back 5 years from now and kick ourselves for selling - or not buying more - property at this time.

Thanks to all for your information/advice.