Tips for selling your NYC apartments with existing tenants

There is no easier and steadier income than renting a home, and for many tenants, it is more affordable than buying a property, especially with the current real estate prices. So, in the end, it is a win-win situation for everybody involved. But sometimes, the owner decides to sell the home before the lease has expired. And selling your NYC apartments with existing tenants can be a blessing or a curse. It all depends on the type of buyers you might encounter. However, one positive side is that selling a flat in New York is not a fast process. It can last up to 6 months, and if your place is empty, you are the one paying utilities and mortgage. Without the month-to-month income the tenants provide, selling will end up costing you more than you initially planned. So with that in mind, here are some tips that will help you navigate the logistics of selling an already occupied property.

What type of lease your tenants have will determine how easily you can sell

The best scenario for the owner is if the tenants have a month-to-month type of contract. In that case, you need to give them 30 days notice from the moment of the last received rent. You do not have to provide them with a reason for termination or compensation. And you will not be violating the tenant protection act as everything is legal. 

However, if your tenant has a fixed-term lease, things get a little bit complicated. They are usually one year fixed type of contract, and you have no legal standing for evicting the occupants. But there are options you can explore, so do not lose hope. Firstly, you can wait for a lease to expire. On the other hand, if it takes too long, you can always check if there is any breach of contract, for example, having pets when it is not allowed, missing a rent payment, falsifying information, etc. Still, in some cases, if your property has long-term tenants, it raises its value.

The success of selling your NYC apartments depends on what sort of property you have

You might not know this, but different types of properties attract different buyers. So, if you want to sell an apartment in a co-op building, most of the buyers who approach you will not be investors. The majority of them will be ordinary people who are looking to move in immediately. Thus, they will want an empty apartment.

But if you are selling a condo located in an area where there are a lot of renters, you will most likely attract investors' attention. And for them, it is most profitable if there is a tenant. In fact, in areas like this, moving companies like Movage Moving NYC have noticed a decrease in customers. It stems from the fact that it is legal for the existing lease and deposit to be transferred to the new owner. Therefore, the investors prefer that the apartment is occupied, so they do not have to trouble themselves searching for new renters.  Tyler Vincent Real Estate also offer Property management tenant screening and are pro’s at selling for the highest price possible.

Offer your tenants a "cash for keys" solution

Once you find a legitimate buyer, who is only interested in acquiring an empty apartment, you might want to negotiate with tenants. If they have a fixed-term lease that is nowhere near expiring, then your only solution is to offer them a settlement. And this is called "cash for keys." The first thing you can do is offer help with moving. And that can entail not only paying for the cost of relocation but organizing everything. However, this will probably not only cost you, but you will spend a lot of time researching and trying to find a reputable moving company in the whole of NYC. That is why you should always look close to home. A good crew from the neighborhood can solve this problem in no time, and there are good chances you'll find them for a reasonable price.

Likewise, if the new owners are in a hurry, you can find a new apartment for your tenants. But it would be best if you looked for a place that is close by. The process of packing everything and transporting it is faster if they are moving across the street.

How to show an occupied NYC apartment?

Here you might run into problems. Selling your NYC apartments with tenants is doable, but showing it to potential buyers can be a source of headaches. It all depends on the tenants. They might help you or do everything in their power to hinder your efforts. Often, they will ask that you inform them a week in advance about the viewing. So, if you have an overseas buyer that flew to New York for one day to see the place, this will not work. Also, with the pandemic and quarantine measures, others will only want to do remote purchasing. In that case, you will need photos of the apartment. However, if the renters are not tidy people, you'll have nothing good to show. Unfortunately, there is nothing you can do but hope for the best because it all depends on tenants.

Selling your NYC apartments to the tenants is the best option

The easiest solution to your troubles would be offering to sell the property to your tenants. You do not have to compensate them or spend time showing the place, as they are already familiar with it. It is also beneficial for renters because instead of organizing a move, they can immediately start thinking about home improvements. Also, if you are free of mortgages and own the property without any debts, you can offer them a seller financing arrangement. It means that you become a lender, and they pay you monthly toward purchasing the apartment.

Conclusion

Selling your NYC apartments with existing tenants is possible with a little bit of patience and a lot of planning. But keep in mind that even if you have agreeable renters willing to accommodate your needs, selling a property in New York can last as long as half a year. With so much bureaucracy involved, it is a good idea to familiarize yourself with all the regulations. Because in instances where you need to find a way to evict somebody, they will come in handy. However, this should be the last option you should utilize. Instead, look for investors that are inclined toward buying a home that is already occupied. It is the best possible solution that will work in favor of everybody involved. 

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