Can I Sell a Rental Property in Killeen with Tenants?
Real estate investors in Killeen, TX, can access steady income from rental payments. Long-term tenants can provide a stable form of income that more than covers the costs of a mortgage and other expenses associated with owning property. However, owners may need to sell their properties while tenants still occupy them.
The rental market conditions in this central Texas community, especially because of its proximity to Fort Cavazos, present unique opportunities for owners. Many may rent out homes that they no longer want to live in. If you want to sell a property with existing tenants, A-List Properties is a cash home buyer that can facilitate a smooth transition and ensure legal compliance.
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Is It Legal to Sell a Killeen Investment Property with Tenants?
Generally, Texas law requires buyers to honor the lease agreements of properties they are purchasing. This means a tenant with a lease agreement can maintain the same deal with the new owner without any legal issues once the transaction is completed.
Therefore, it is perfectly legal to sell your rental property while tenants are still living there, though some rules apply and careful planning is needed. Landlords typically must give notice to their tenants that they are showing the property to potential buyers.
In most cases, there is no need to evict a tenant in order to sell a property.
What Happens to the Lease Agreement When You Sell?
Texas law requires that leases remain in place for tenants living in a property when it is sold. Unless there is a specific provision in the rental agreement stating the lease terminates upon sale, it must be allowed to reach its natural end date once there is a new owner.
Fixed-term leases are generally binding, so the buyer must honor them once they have taken possession of the property. Month-to-month leases are typically more flexible, but a new owner must still fulfill certain obligations.
Can I Still Collect Rent While the Home Is for Sale?
Property owners can collect rent for the entire period before the sale is closed. If the selling process lasts for months, the owner can continue to collect rent until the deal is completed. It is essential to maintain communication with each tenant about the progress of a property sale and reassure them that the new owner will still honor their current lease.
A-List Properties keeps funds on hand so we can be flexible when closing on a rental property. This allows us to work with property owners around tenant schedules and preserve cash flow until the closing date.
Navigating Notice Requirements for Killeen Landlords
Depending on individual lease terms with your tenant, you may be required to give notice of potential sales or evictions. Notifying a tenant of an impending sale is a matter of transparency, and you can inform them that, according to state law, the new owner will still honor their current lease.
A notice of eviction is a much more complex process and may only be allowed if the tenant breaks their lease terms or a provision allows eviction upon sale. Month-to-month leases require a 30-day notice to vacate.
Though it is not legally required, most tenants should be notified of potential sales, especially if it affects their rental status. Buyers who want to evict tenants after a foreclosure sale must give a 90-day notice.
Selling your rental house to A-List Properties ensures there is minimal tenant disruption.
Can You Sell a Property Without Involving a Property Management Company?
Property managers can be useful when selling rental homes because they can facilitate showings. However, you are not legally required to involve your management partner. Many landlords prefer direct, private sales because they are faster.
As a cash buyer, A-List Properties can simplify things for you by managing the selling process ourselves.
Pros and Cons of Selling a Tenant-Occupied Home
Selling a property while a tenant occupies it has several benefits. First, property owners can continue collecting rental income during the selling process, even if it lasts several months. It also allows time for investors to show interest in the property.
On the other hand, it can be harder to schedule showings, especially if there are only one or two units. Repairs and upgrades may have to be delayed to accommodate the current tenant, further delaying the sale. The buyer pool also tends to be smaller for these types of properties with current occupants.
However, selling the property for cash to A-List Properties can help you overcome many of these disadvantages.
How A-List Properties Buys Rental Homes with Tenants in Place
Our team has plenty of experience purchasing rental homes in Killeen, even those with tenants occupying them. We honor our clients’ lease agreements to ensure a smooth transition and stable rental income leading up to the closing day. By selling to our company, landlords can avoid real estate agent fees, repair costs, and financing delays.
A-List Properties buys houses in all conditions, so you can have a clean break from your rental, even if tenants have damaged it. Lastly, we can make a cash offer for your house outside of the traditional listing method to avoid all the complications and delays of an open market sale. It could take months to find the right person to buy your home with a traditional sale.
Can I Sell Without Giving Notice to My Tenants First?
Notifying your existing tenants of a potential sale is a good practice, especially if you want to maintain a positive experience with the investor. If renters suddenly find out the property has been purchased without their knowledge, they may become wary of the new owners.
Open communication and reassurances surrounding their rental status will ease the tenants’ minds so the transition goes smoothly.
Legally, homeowners are not required to notify renters of a sale if those tenants will be staying after the sale with their current leases. A-List Properties can close while tenants are still in the home, often without them ever needing to move.
What If My Tenants Just PCS’d or Broke the Lease?
Fort Cavazos is a military base, which means some tenants may receive Permanent Change of Station orders and have to vacate their rentals quickly. Other tenants may simply break their lease agreements. In either case, a vacated rental could be damaged or require work to sell to a traditional buyer.
No matter the property condition or the reason for sale, A-List Properties can facilitate a fast sale. Landlords can take advantage of the convenience of selling quickly, whether there is an active lease in place or not.
Why Out-of-Town Landlords Love Selling to A-List Properties
If you are an out-of-town rental owner, selling a property can be even more complex and typically requires careful planning. Taking trips out to Killeen to coordinate sales can be time-consuming and expensive. When you sell directly to A-List Properties, there is no need to hire a property management company or visit to facilitate sales.
All you have to do is contact our team, schedule a walkthrough or virtual showing, and accept our cash offer. You will receive your money quickly and be able to move on from this long-distance source of stress.
Selling a Rental Property in Killeen: A Simple Exit Strategy
A-List Properties makes your exit strategy as simple as possible. If you are tired of making repairs or dealing with unreliable tenants, you can remove this burden from your shoulders in 14 days or less. If you want to liquidate your assets to address your financial goals, this is an efficient way to do so while avoiding potential legal issues.
Selling to our veteran-owned business is easy. There are no showings to plan for, no real estate agent commissions to pay, and no headaches. We offer a flexible timeline and will pay cash to accommodate your financial needs and tenant schedules.
Plus, we vow to maintain honest and respectful communication throughout the selling process. If you would benefit more from a traditional listing than our services, we will let you know. It all depends on your specific situation.
Sell Your Killeen Rental Without the Stress
Many landlords are concerned about selling properties currently occupied by existing tenants, especially in a unique market like Killeen. Fortunately, you can do so legally, knowing that A-List Properties will honor all your lease agreements for a smooth transfer of ownership.
If the property needs some repair work or you simply want to cash out your investment, our team can facilitate a fast cash sale to offload your property quickly. If you are prepared to sell your house in Killeen, TX, whether it is occupied by a tenant or not, call us today at 972-526-7042 or complete our online form to request a no-obligation cash offer.
Zach Shelley
Zach Shelley is a seasoned real estate investor with a diverse network spanning across the nation. As the founder of his own real estate venture, Zach is committed to offering innovative solutions to homeowners facing various real estate challenges.. Through his dedication and strategic approach, Zach continues to make a significant impact in the real estate industry, providing homeowners with alternative pathways to navigate their property transactions.
