Selling a suited property
- Thread starter LAndersen
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It depends.
If you have excellent tenants in place and they are paying full market rent, it could be a selling feature for investors. If rent is below market, the tenants are mediocre, or the property may be better suited to owner-occupiers rather than investors, then vacant could be better.
It also makes a difference if the suite is legal. If it is not a legal suite, it may not appeal as much to investors, so you may want to sell it vacant so either an owner-occupier can buy it or an investor can legalize it.
If you have excellent tenants in place and they are paying full market rent, it could be a selling feature for investors. If rent is below market, the tenants are mediocre, or the property may be better suited to owner-occupiers rather than investors, then vacant could be better.
It also makes a difference if the suite is legal. If it is not a legal suite, it may not appeal as much to investors, so you may want to sell it vacant so either an owner-occupier can buy it or an investor can legalize it.
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You are almost always better off selling empty, as 98%+ of your potential buyers are not investors but homeowners.
As such, REIN really teaches a change of use concept: buy & operate as a rental property, but sell, at a premium, vacant, renovated, possibly staged, to homeowners.
Only in very rare situations will you be able to get more $s from an investor with a tenanted house/TH/condo.
As such, REIN really teaches a change of use concept: buy & operate as a rental property, but sell, at a premium, vacant, renovated, possibly staged, to homeowners.
Only in very rare situations will you be able to get more $s from an investor with a tenanted house/TH/condo.
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+1 for what Thomas said.
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I agree you likely won't get more money from an investor than an owner-occupier. However, since we are referring to a suited property, and legally-suited properties appeal to many investors, it may be possible to sell it tenanted (providing they are great tenants paying full market rent).
That being said, it is easier to show a vacant property than a tenanted property. A tenanted suite is often not clean, tidy, or inviting, and cannot be staged. Plus timing of showings can be an issue. When we have had tenants leaving a property and listed the property for sale, we have seen almost no interest in the property until after the tenants vacated.
That being said, it is easier to show a vacant property than a tenanted property. A tenanted suite is often not clean, tidy, or inviting, and cannot be staged. Plus timing of showings can be an issue. When we have had tenants leaving a property and listed the property for sale, we have seen almost no interest in the property until after the tenants vacated.
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Yes certainly empty. We had the experience of an uncooperative tenant that didn't want to move out and ignored the realtor. Empty is better for sure.