No one likes being fooled, especially in real estate. If you are serious about selling your property, you need to work with a real buyer. If a buyer is attempting to discuss any of the three situations below, you should get a second opinion before you sign anything!

The rental dilemma:

Most landlords have a dilemma when it’s time to sell their property. Do I sell the property to my tenants? Do I evict the tenants and rehab? Do I sell to another landlord? Do I just wait another year to sell?

Being a landlord myself, I can relate to this dilemma.

Selling to your tenants seems like the logical option. But here are a few pointers to avoid wasting your time or creating tenant resentment.

• Put a time limit with the tenant on when they must provide you a pre-approval letter (7-14 days).
• Work closely with their mortgage lender to be included in what is exactly needed for them to qualify.
• If they are unable to qualify, don’t allow a relative or friend to buy for them.
• Sellers disclosure statement- Make sure you fill this out as detailed as possible. This can be used against you. — “The landlord knew the house leaked and sold it to me anyway.”
• Purchase agreement- Always have the tenant perform an inspection to avoid claims of concealment etc.

No one wants to evict a loyal long term tenant. However, at some point you want to move on with your life and stop putting off real retirement. If you decide to rehab then sell, here are a few things to consider.

• Give your tenant time to move. It’s a tight rental market right now and providing them at least three months should be enough time to find a new place.
• Sales ready vs rent ready property. Sales ready means new carpets or refinishing hardwoods (not steam cleaning old carpet). It means granite or better countertops and new cupboards (not painting over cupboards). It means tile or composite blank board (not laminate/vinyl or stick down).
• I would budget at least $18-25 per square foot for a proper rehab. *Finding affordable and available contractors can be very challenging.
• To get the maximum price you will most likely want to have it listed on the MLS. Realtor costs are typically 5-7%. * Tip: Watch out for added office or processing fees

It’s true, if you do a nice rehab you will receive a higher price for your property. But that doesn’t always translate to more money in your pocket once you add in the cost to rehab and the costs to sell.

Selling your property(s) to another landlord. This is where I can help. I want to keep your loyal tenant in place and create a seamless transition from one landlord to another. I only need to see the property once and there are no repairs and no commission. With over 20yrs of real estate experience, I can make selling easy and very cost effective.

It can’t hurt to check out what your fellow landlord would offer. You can use my offer as a baseline to decide what is the best plan for you.

I’ve been through one Recession and I expect I’ll be through another one before I’m done being a landlord. If you are not planning on being a landlord for much longer, selling now may be the best decision you make.