Lease before sale? (by Robin [WI]) Nov 12, 2018 1:05 PM
Lease before sale? (by razorback_tim [AR]) Nov 12, 2018 1:09 PM
Lease before sale? (by Ken [NY]) Nov 12, 2018 1:19 PM
Lease before sale? (by WMH [NC]) Nov 12, 2018 2:36 PM
Lease before sale? (by WMH [NC]) Nov 12, 2018 2:37 PM
Lease before sale? (by plenty [MO]) Nov 12, 2018 2:57 PM
Lease before sale? (by Beth [WI]) Nov 12, 2018 3:12 PM
Lease before sale? (by LindaJ [NY]) Nov 12, 2018 4:21 PM
Lease before sale? (by Robert J [CA]) Nov 12, 2018 4:32 PM
Lease before sale? (by BRAD 20,000 [IN]) Nov 12, 2018 10:53 PM
Lease before sale? (by Vee [OH]) Nov 13, 2018 3:42 AM
Lease before sale? (by NE [PA]) Nov 13, 2018 4:00 AM
Lease before sale? (by Nicole [PA]) Nov 13, 2018 5:48 AM
Lease before sale? (by Deanna [TX]) Nov 13, 2018 7:22 AM
Lease before sale? (by Oregon Woodsmoke [ID]) Nov 13, 2018 7:37 AM
Lease before sale? (by Robin [WI]) Posted on: Nov 12, 2018 1:05 PM Message:
We're about to put a (vacant) property on the market. It's in an area of rentals, mostly sec. 8 (which we don't do). I want to market it vacant and let the buyer place their own tenant. DH wants to fill it with a marginal tenant that we collect a double deposit from, and pass that deposit on to the buyer as a perk. If you were a buyer, which would you prefer?
Btw, the marginal tenant is marginal only in income. She's high-risk pregnant so can't work. Her husband of 10 years is working two low-wage jobs right now so the income is adequate for now, but he doesn't have a long work history.
--204.210.xxx.xxx |
Lease before sale? (by razorback_tim [AR]) Posted on: Nov 12, 2018 1:09 PM Message:
I would prefer to choose my own tenant for a SFH. if you’re talking apartments or a bundle of houses there could be a big benefit to having all of them rented. --166.137.xxx.xx |
Lease before sale? (by Ken [NY]) Posted on: Nov 12, 2018 1:19 PM Message:
I would rather place my own tenant,that couple sounds like an eviction waiting to happen and who says they will be cooperative with showing it? I wouldn't consider a double security deposit a perk,it is the tenants money so no great benefit to me and I would look at it as why did you feel the need for a double deposit? That being said I have seen a lot of first time landlords think it is a good thing to have a tenant already in the unit --72.231.xxx.xxx |
Lease before sale? (by WMH [NC]) Posted on: Nov 12, 2018 2:36 PM Message:
Do NOT want some inadequate LL's picks of tenants. EMPTY. --50.82.xxx.xx |
Lease before sale? (by WMH [NC]) Posted on: Nov 12, 2018 2:37 PM Message:
Sorry didn't mean YOU were an inadequate LL! Just that we have learned our lesson: pick our OWN tenants. --50.82.xxx.xx |
Lease before sale? (by plenty [MO]) Posted on: Nov 12, 2018 2:57 PM Message:
Dpes it hurt to start vacant and disclosure rental history and rental comps. You can always fill it later if the market of buyers need that. Would you want this tenant after today if the house doesn't sell. I think it's harder for agent to show and tenants can make it difficult simply by existing in home. Life is simpler if its empty. --99.203.xx.xx |
Lease before sale? (by Beth [WI]) Posted on: Nov 12, 2018 3:12 PM Message:
I suspect most LLs on this forum screen their tenants. Therefore, readers here would prefer the unit to be empty.
Your typical prospective buyer? Not sure that they screen much particularly in a Section 8 neighborhood.
Good cash flow is very attractive.
Why not put in a tenant on MTM? --47.12.xxx.xx |
Lease before sale? (by LindaJ [NY]) Posted on: Nov 12, 2018 4:21 PM Message:
Vacant Single Family house - vacant for sure. Duplex, vacant one side, possibly a good tenant on the other, multi-unit, leave the one vacant if the others have tenants.
The most important thing with a vacant unit is the ease of showing it. You don't disturb anyone, they don't have a mess, etc. A buyer with vision does not need to have it "staged". If anyone is buying to live there, they want to be able to decorate and move in immediately.
--108.4.xxx.xx |
Lease before sale? (by Robert J [CA]) Posted on: Nov 12, 2018 4:32 PM Message:
Almost every time when I go to sell one of my homes, the current tenant doesn't want to leave and says they will leave it up to the buyer. Then I get a great offer, subject to the place being vacant. Of course I want to close escrow ASAP so I agree to allow monies being held back in escrow to cover the cost in case of an eviction.
My last tenants, a lawyer and spouse film editor said they would be out in 60 days if they were paid money to leave. So I gave them $5,000 to leave within 60 days and I gave my buyer $5,000 to cover any legal costs. The home sold for close to a million dollars so $10,000 isn't a lot of money.
The buyer made an agreement with the tenants that he would allow them 60 days of "free rent" if they got out by the 60th day. The tenants agreed and then refused to leave unless the new owner paid them an additional $10,000 on top of the two months free rent. They were greedy tenants. I guess the lawyer in them got the best of them. So the new owners did an eviction and won their case. They got the 2 months back rent because the tenants didn't leave withing the agreed time frame. And the new owners also got legal cost and the balance of rent up to when the sheriff's lock out occurred.
Then I told my old tenants that they had 90 days until the eviction will be public record, they needed to find another rental soon. Of course they didn't follow my advice and too a temporary rental for 6 months. When that lease came due, their credit and eviction record made them a bad choice for new landlords, so the had to then pay a premium rent if anyone would take them, 30% over market.
So my story should tell you that no matter what a tenant agree's too, it will hurt your sale. --47.156.xx.xx |
Lease before sale? (by BRAD 20,000 [IN]) Posted on: Nov 12, 2018 10:53 PM Message:
Robin,
Empty is easier for me.
We stage the homes when selling - makes a HUGE difference!
And no need to get a res's cooperation for showings.
I think the realtors prefer empty.
BRAD --68.50.xxx.xxx |
Lease before sale? (by Vee [OH]) Posted on: Nov 13, 2018 3:42 AM Message:
Empty but keep this couple in the wings as an option for the buyer to screen and make his/her decision. --76.188.xxx.xx |
Lease before sale? (by NE [PA]) Posted on: Nov 13, 2018 4:00 AM Message:
Give them a sellers assist at closing instead of the double deposit. It's only on paper anyway. Sell it vacant. --50.107.xxx.xxx |
Lease before sale? (by Nicole [PA]) Posted on: Nov 13, 2018 5:48 AM Message:
skip this couple. they are on the edge of tumbling. --72.70.xxx.xxx |
Lease before sale? (by Deanna [TX]) Posted on: Nov 13, 2018 7:22 AM Message:
If you market your SFH as vacant, you can appeal to investors and to homeowners.
If you market your SFH as occupied, you market to investors who are happy with your selection, your rent rate, your improvements, etc.
If it's a normal, ordinary, middle-of-the-road multi, not shiny, but not broken-down, I'd prefer it to make money from Day 1. Presuming there's no major systems in need of replacing-- heat & air, roofs, electrical, plumbing, whatever-- I'd be happy to coast along with 100% occupancy until I had a natural vacancy.
But I would rather have a vacancy than a bad tenant.
If your high-risk pregnancy + guy with two jobs had already been in place before she was pregnant, I would leave them in place. But who wants to move voluntarily when their wife is in a high-risk pregnancy? Presumably, they have to leave their current place because they can't keep it without her income, and are looking for someplace cheaper. So that tells me that either she had a great, well-paying job, and they're having to tighten the budget-- or the multi is on the humbler side, and moving to it is an indicator that they have come down in the world.
So in that case, if you're dealing with a humble multi, I'd leave the unit empty, because dealing with that class of tenant is very landlord-specific. --96.46.xxx.xx |
Lease before sale? (by Oregon Woodsmoke [ID]) Posted on: Nov 13, 2018 7:37 AM Message:
Single family home, vacant. You can clean it up spotless and it will stay that way.
Potential buyers can see it instantly. No 24 hour notice or tenants deliberately trying to interfere with showing the property. --174.216.x.xxx |
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