If you own any kind of real estate, it’s vital that you get the most out of your investment. This requires information on the property values as well as your legal rights.
In California, the average fair market rent is roughly $1,500 per month for a 2-bedroom. Property values are consistently going up, which is why investing in California rental properties is great for an ROI.
It’s also imperative that you learn as much as you can about lease agreements and how to notify your tenants that you’re going to sell the property. These tips will clue you in on what you must know to go through the process.
Understand California Law
When it comes to property and rentals, you are always bound by a variety of state laws. Keep in mind that your tenants have rights whenever you’re selling rental properties in California.
Remember the following before going through the process:
You Must Give Your Tenants Notice
Before you sell a property that tenants occupy, you are required by law to give them reasonable notice. This includes notice to enter the property for showings or any other reasons.
In the state of California, at least 24 hours is deemed reasonable notice. California home sales can happen fast, so you are well within your rights to strike quickly on a deal. However, be sure that you keep your tenants in the loop so that they are aware that the property is getting ready to be sold.
They Must Be Notified of Showings
When you are learning how to sell rental properties, it’s also vital that you notify your tenants that you are showing the property to prospective buyers. According to California law, you will need to give your tenants written notice that you are intending to show the property.
For best results, post the notices on tenants’ doors so that they are aware and in the loop. You might also choose to send out e-mails and send direct mail notifications. This way, you’ll know that everyone is made aware and you can show the property freely and without concern.
Consider Foreclosure Situations
Foreclosures are always a possibility — particularly in potentially expensive real estate markets like California. If your property is being foreclosed on, you are required to give your tenants 60 days’ notice about the situation.
This way, they are able to make other arrangements in time. Federal law dictates that people be given 90 days’ notice of a foreclosure situation. Make sure that you are on the right side of the law by observing the 90-day period just to be on the safe side. This is the case whether your tenants are locked into a long-term or short-term lease.
Make Sure Your Tenants Are Aware of Their Rights
Whenever you post a notice, give your tenant the opportunity to learn their rights in the situation. Though they have a certain amount of time to leave a property, they might opt to vacate immediately instead.
You also have some wiggle room to offer the tenant reduced rent if you’d like them to stay for the duration. Always offer workable agreements so that you can get the best-case scenario out of the situation.
Hire Professionals for Help
Whenever you are thinking about selling a property that you’re renting out to tenants, the last thing you ever want to do is handle it all on your own. There are a variety of companies that specialize in these types of transactions, and they can help you move the ball forward.
Most importantly, these companies are up-to-date on landlord-tenant laws and can prevent you from making a mistake in the process. Learn as much as you can about the company that you’re thinking of hiring to find the right arrangement.
Find a company that has an A+ rating with the Better Business Bureau so that you get the best from the situation. Schedule a consultation with them and let them know what kind of offers you are fielding, or if you are still seeking offers from prospective buyers.
If you are in a pinch financially, there are also companies that will purchase the property from you as-is. This way, you can walk away with cash in your pocket and will be in a better position to move forward. Do your due diligence when shopping around with these professionals so that they can give you the best offer available.
Figure out how much equity you have in the property, and determine an amount that you are willing to accept. If the sale is as-is, you won’t have to worry about making any improvements or changes to the property. If you are thinking about listing the property on the market, you will likely want to make some upgrades that will help you fetch the best price.
Speak to some financial professionals so that you have a clearer idea of what you are dealing with, and so that you can arrange for a deal that makes sense for your real estate portfolio.
A Guide to Selling A House With Lease Agreements and Tenants
These tips are helpful when you need to learn more about managing lease agreements in California so that you can sell the property. It’s important that you do everything in your power to learn about these agreements so that you are able to be on the right side of the law.
It would behoove you to speak to an attorney who can represent your interests. This way, you can move forward with the situation while still doing right by your tenants.
With this in mind, you should also begin speaking to some professionals who specialize in buying real estate property. You will get the most bang for your buck and can get a quality ROI from your property in the meantime.
are helpful when you’re trying to create lease agreements that will work for you. We’ve been in business for years and would love to hear more about your property. If you’re ready to connect with us, send us a message on our site or give us a call at (714)475-7526 for more information!