Selling an Investment Property While Tenants Are Still Occupants
Making the decision to sell an investment property can be an exciting time. All of the hard work and dedication you have put into the property can finally pay off in the form of a nice return on your initial investment. However, if you are listing commercial property for sale and still have tenants that are occupying the space, you will have to make several important considerations. That’s why we’ve put together the following article to help you cash out of your investment property without disrupting your tenants or having to deal with legal issues.
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Does Your Tenant Have a Lease?
One of the most important things to consider when you decide to sell an investment property is whether or not the tenants that are occupying the space have a lease. This might seem like a basic necessity for any serious business or office space real estate with tenants, but there are actually a lot of businesses that pursue verbal “month to month” agreements with tenants. It can be tricky to deal with tenants that are leasing based on these types of agreements.
Does the Lease Allow You to Request That a Tenant Vacate the Property?
It is always extremely important to make sure that when you are drafting a lease, you cover all of the bases. You should know whether or not your lease allows you to give your tenant notice to vacate the property when you decide to put your commercial property for sale. Typically, commercial leases include an option that allows owners to give tenants a 30-day notice to vacate the property. Confirming whether or not your lease includes this is essential if you are selling an investment property with tenants still occupying the space.
Be Compassionate to Your Tenants
Sure, when you decide to sell an investment property you are probably excited to get the deal closed as soon as possible. However, you should always try to understand the position of the tenants that occupy the space. You don’t want their business to be disrupted or provide them with any unpleasant surprises. Communicate with your tenants early and often to make sure your sale of office space real estate and other investment properties go smoothly.