Exit strategies are necessary for the real estate investment business as a part of your overall strategy to realize the best returns on the investment when you purchase the property. Savvy investors, however, understand that they must maintain a constant vigil over the local market for upcoming changes or trends in real estate requiring an earlier than planned exit. Additionally, changes in our personal lives may affect the strategy we use for the holdings in our real estate portfolios which may require selling with a tenant in residence. Whatever may have led to the decision that the timing was right, read on as we explore how to sell your house with tenants in Baltimore.
Sale Termination Clause
Because existing leases are not affected by a decision to exit the investment property, you may wish to include a sale termination clause allowing you to sell your house with tenants in Baltimore 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.
You should provide your tenants with proper notice when you sell your house. According to the Maryland Residential Property Disclosure Act, landlords must give their tenants at least 60 days’ written notice of their intent to sell the property (Md. Code Ann., Real Prop. 11-135). The Notice of Intent to Sell form is available from the Maryland Department of Labor, Licensing, and Regulation’s website. If you have a good relationship with your tenants, it is also important to maintain open communication with them throughout the process. Be sure to let them know about any changes that might affect their tenancy, such as new owners who plan to make changes to the property. It is also important to be considerate of your tenants’ rights, especially if they have to move out during the sale.
Some landlords find no other option than to sell the property when they have challenging tenants rather than wait out the remainder of the lease. Unfortunately, suppose your screening process failed to protect you from this situation, and you’re trying to sell your house with tenants in Baltimore. In that case, they may move from being difficult to being unreasonable. At the same time, 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 to repair. If you can’t count on their cooperation with showings, you may wish to consider using keys for cash, an incentive of a large lump sum of cash to vacate the property and provide you with the keys willingly.
CR of Maryland LLC
Need to sell your house with tenants in Baltimore? The fastest, easiest, and most convenient way is by selling directly to the local professional home buyers at CR of Maryland LLC, with no hidden fees, commissions, or closing costs, no hassles with showings, or expenses of prepping, repairing, and marketing the property. At CR of Maryland LLC, we’re fully transparent because we want you to sell your property for the highest possible profit. Therefore we’ll compare what you’d earn on the Baltimore market vs. selling directly to CR of Maryland LLC, providing you with the full details of the expenses and profits each sales method offers, so you’ll understand how we reached our offer, which you’ll agree fair. CR of Maryland LLC buys houses as-is for cash and provides you with a guaranteed closing date, typically in a matter of days. Don’t forget to ask about our current inventory of the best investment properties available in Baltimore if you want to defer taxes through a 1031 exchange. Call CR of Maryland LLC at (443) 391-7080.