Timing the sale of your investment property is crucial if you want a fast sale with many potential buyers. Pay attention to when the tenants’ leases are expiring. A month-to-month lease will provide you with the most freedom whereas a fixed-term lease could complicate matters if you want to sell without a tenant.
Month-to-Month Lease
If the rental agreement is month-to-month and you expect your tenant to move out upon expiration, you must give your tenant proper notice per the state or local law.
Virginia code section 55.1-1253 requires 30 day written notice from when the next rent payment is due unless the lease agreement specifies a longer time period.
Maryland state law requires a landlord to provide written notice to the tenant 1 month before the end the month when the tenant needs to leave. However, your county or jurisdiction within the county can have more restrictive laws.
Washington DC does not allow a landlord to ask a tenant to leave even when the tenant’s month-to-month lease is expiring without just cause. Just cause can include selling your rental property to a homeowner who plans to occupy the home (i.e. not rent it out).
Fixed-Term Lease
A fixed-term lease may leave you with no option but to sell with tenants depending on your timeline. However, if you’re planning to sell to an investor and have high quality tenants in place, there may be no need to wait for the lease to expire.
If you want to sell to a retail buyer without tenants in your property and cannot wait for the lease to expire, you could try negotiating with your tenant to end the lease early. There are several methods including cash for keys, selling to your tenant, and helping your tenant find a new home. If none of these tactics work, you may have no option but to sell with a tenant in place to an investor or wait for the lease(s) to expire.