27 septembre 2019,
When you are a real estate investor, you can sometimes forget the human aspect concerning your investment.
After all, this is not the stock market.
In real estate, one invests in buildings where people will live.
It is the tenants that allow investors to get rich and without them, no investment would be profitable.
For this reason, it is important to understand how important tenants are and how having bad tenants can be frustrating.
Indeed, many investors are forced to sell their investment and even stop investing because they are not able to manage difficult tenants.
Indeed, a building populated by bad tenants can totally hurt you during the sale while excellent co-op tenants can greatly help you find a buyer faster and sell at a better price.
Of course, it is equally important to understand what selling your income property entails, including the tax you have to pay for selling a rental property.
Let’s look at some examples of how your tenants could help you sell your income property.
Cooperative tenants are as valuable as gold!
If you have income properties, you probably know that your tenants can either be strong people who are pleasant to live with or give you a very hard time. At the time of the sale, it can greatly influence the final result of your project.
Indeed, if your potential buyers ask to visit the building and arrive to see two neighbors screaming at each other, they could lose interest! Your buyer will also think twice if your tenants are not cooperative and don’t show respect when you take them to see the apartment.
An apartment building with good tenants is an easy-to-manage building, which means it will require less time, resources, and money from the investor.
An investor who would have the choice between a $6,000 income property which is more expensive than a similar one with easier to manage tenants could opt for the more expensive building.
In real estate, peace of mind and cooperative tenants are as valuable as gold.
Ask your tenants if they agree to speak with the potential buyer
The best real estate investors know that talking to tenants is one of the essential things to do before buying an income property. Before introducing them to potential buyers, speak with the tenants and ask if they are willing to talk to potential buyers and answer questions.
Notifying your tenants will make them more likely to respond and say positive comments. In fact, tenants who do not like you will tend to denigrate your building management and this can send a bad message to buyers who think that you have not maintained the building properly or that there are hidden problems.
By maintaining a good relationship with your tenants and asking them to respond positively to future buyers, you will ensure that your buyer will leave with a positive image of your building and your management which can greatly benefit you when the buyer decides to buy your property.
TIP: Set up a tour schedule with them to avoid conflict
There is nothing more unpleasant for a tenant than to be suddenly disturbed by an unexpected visit and interview. Many homeowners schedule a visit with their tenants for convenience and to show consideration. They ask tenants what times they cannot receive visitors. Of course, we don’t have to acquiesce to demands from tenants for all nights off. However, tenants who want to have Friday nights without visits can be reasonable. It’s all up to you but a mutually convenient schedule can work in your favor because your tenants will be in a better mood during the visit and will be more likely to say positive comments. Think about it!
Desirable tenants can help you sell faster
Your tenants can really help you or hurt you when selling your income property. If you have a good relationship with your tenants and they are desirable, they will give a positive impression to potential buyers and demonstrate that the management of the building will not be a problem.
If you have good tenants who have lived in your building for a long time, it can be even better! Many investors are looking for buildings with stable and cooperative tenants that do not bother anyone.
Indeed, if you have tenants who intend to stay several years in the building, do not hesitate to mention it to your potential buyer. The cost of replacing tenants can be quite high and investors can save money when good tenants live in the building. This can work well in your favor during the sale!
Read more tips on how not to lose money in real estate anymore and make your project as profitable as possible.
Find a real estate broker to start an income-generating project
Are you ready to sell your income property?
Find a real estate broker in your area quickly, efficiently, and free of charge using Compare Real Estate Agents. It’s simple; just fill in the online request form on this page and receive up to 3 offers from the best real estate brokers in your area.
It is so fast and simple!
You will then be able to compare their profiles as well as their commission rates, strategies, personalities, and more! By comparing, you will be assured of the best deal and quickly find the right broker for your project.
The healthy competition between our partner brokers guarantees that you always have the most advantageous offer. Moreover, it is absolutely free to use our service!
If you are ready to sell your income property or would like to speak with real estate agents in your area, complete the form below!
Don’t forget, your tenants are important to your real estate success and could help you sell your income property faster and at the best price!
Find out how you can sell your income property for a higher price with a real estate broker.