If you want to earn extra income, owning Virginia rental properties is one way to achieve this goal. However, renting properties doesn’t mean you have to own them for life. When you’re ready to sell your rental properties, it’s understandable to worry about what happens to your tenants. Here’s how lease types affect selling rental property.
Tenants with month-to-month leases
Tenants under a month-to-month lease require advance notice that you’re selling the property they’re renting. Fortunately, you only need to give tenants under this contract a 30-day notice to move out. There’s no need to complete any extra steps to end a month-to-month agreement.
Tenants on a fixed-term lease
Things can get a bit more complex when selling a rental property housing tenants under a fixed-term lease. Some experts feel that the best way to handle this situation is by letting the lease expire. You could also consider selling this property to another real estate investor. Certain investors actively search for properties housing paying tenants.
Sell this property to your tenant
It might also be possible to sell your rental property to its tenant. Since the tenant has a clear understanding of this property, you shouldn’t have to sell them on it. With a seller financing arrangement, your tenant can make prearranged payments to you towards the purchase of this property.
Pay your tenant to move out early
One of the most popular incentives in life is money. If you need your tenant to move out right away, consider offering them extra money to terminate a lease early. This strategy can be costly, but it’s also quite effective.