Exit strategies are necessary for the real estate investment business as a part of your plan to realize the best returns on the investment when you purchase the property. Savvy investors, however, understand that they have to study the local market for impending changes and trends in real estate that might require an earlier than planned exit. Additionally, changes in our personal lives may affect the strategy we use for the holdings in our real estate portfolio which may require selling a property with a tenant in the residence. Whatever led to the decision that the timing to sell was right, read on as we explore how to sell your house with tenants in Knoxville.
Sale Termination Clauses
Because existing leases are not affected by the decision to exit the investment property, when drafting your lease with your attorney, you may wish to include a sale termination clause allowing you to sell your house with tenants in Knoxville and terminate the lease legally. With or without this clause in effect, it’s always beneficial to offer benefits to the tenants in exchange, such as lowered rent during the listing period for keeping the house showing ready, offering to be flexible with the moving date, or even paying part of all of the moving expenses. It’s highly advisable to ensure the rights of the tenants remain protected. You should always verify the legality of your contract with a professional real estate attorney in light of local, state, and federal guidelines.
Notifying Your Tenants
When you sell your house with tenants in Knoxville, you should provide your tenants with proper notice, maintain open communications and a positive relationship, and meet all local, state, and federal guidelines. In addition, summarize your intent to sell, and provide information regarding cooperation with the laws governing tenants regarding showing occupied units on the market, yet remain considerate, especially given any extenuating circumstances.
Managing Difficult Tenants
Some landlords will find no other option than to sell their property when they have challenging tenants rather than wait out the remainder of the lease term. Unfortunately, suppose your tenant screening process failed to protect you from this situation, and you’re trying to sell your house with the tenants in Knoxville. In that case, they may move from being difficult tenants to being downright unreasonable. At the same time, when you could begin costly eviction proceedings, the volatility may escalate, and chances increase that you’ll experience severe damage to the property, often running into thousands worth of damages when the tenants finally vacate. If you can’t count on their cooperation with showings for your invesment property, you may wish to consider using the “cash for keys” strategy, an incentive of a large lump sum of cash to vacate the property and provide you with the keys willingly and without damage to the property. It pays to help them out and help them get to the next place.
Southern Sky Home Buyers
Do you need to sell your house with tenants in Knoxville? The fastest, easiest, and most convenient way is by selling your property directly to the local professional home buyers at Southern Sky Home Buyers, with no hidden fees, commissions, or closing costs, no hassles with showings, or expenses of prepping, repairing, and marketing the property. At Southern Sky Home Buyers, we’re fully transparent because we want you to sell your property for the highest possible profit or more. Therefore we’ll compare what you’d earn on the Knoxville market vs. selling directly to Southern Sky Home Buyers, providing you with the full details of the expenses and profits each sales method offers, so you’ll understand how we reached our offers, which you’ll agree fair. Southern Sky Home Buyers buys houses as-is for cash and provides you with a guaranteed closing date, typically in a matter of days. Cash is king and you don’t have to worry about financing falling through.
We also buy with creative finance which lets you defer capital gains tax*, turn your investment into a passive income stream and let someone else do the repairs and answer the phone calls.
Don’t forget to ask about our current inventory of the best investment properties available in Knoxville if you want to defer capital gains taxes via a 1031 exchange. Call Southern Sky Home Buyers at (865) 410-8326.
*Not legal or tax advice, consult your attorney