Orange County Real Estate Investors say, selling an active lease agreement limits potential tenants.
You are limiting yourself to investors as well.
New Fixed Term Agreement – Orange County Real Estate Investors
Orange County Real Estate Investors say, new owners are inclined to honor the current tenant’s lease agreement.
Every state has a protocol when transferring the lease and security deposit with all the property.
This also applies when a new owner steps in.
Tenant Pay Off
Orange County Real Estate Investors say, sometimes new owners negotiate a settlement with the tenant.
Negotiations have a tendency to happen if the new owner wants to get the tenant out early.
In the business, this is known as”cash for keys.”
They’ll suggest properties that can be compared to yours on your desired area.
If rent is a little more than what is actually being charged, the proprietor will offer to pay the difference.
Property For Sale
If selling the property to a tenant, you want to allow them time to get financing on their own.
At times tenants will offer a seller financing arrangement.
This transaction is used if the property management company becomes the lender.
The tenant will then make payments to purchase the property.
Seller financing is normally offered to tenants that are in good standing.
There are times even if tenants are in good standing they will not get to stand outside the lease.
Depending what state you reside in, there are leases that have an early termination clause.
These clauses state that the lease will be terminated in 30, 60 or even 90 days.
This may happen after closure early on the sale of the property.
The cause does not matter, as long as it’s reasonable.
Both parties will have to agree with what stated in the lease.
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