can I sell a condo with tenants in it?

[Anonymous]

Laif-off fed here. I live in Maryland but own a condo in DC--I bought it in 1999. I've never had trouble renting it, and hoped to keep it, but my finances being what they are--I need to sell it.
The tenants are wonderful and have lived there for a few years. Their lease runs through AUgust 2026.
Is it possible to sell a condo while the tenants live yothere?
I never anticipated being in this situation--I thought I'd work a few more years and then go live in that condo. Elon Musk had other ideas. Thanks for your thoughts.

[Anonymous]

Hmm. I would work any combo of odd jobs before I'd sell a reliable source of revenue, OP. What is it about your situation makes selling this condo so urgent?

And that's my take before the tenant wrinkle. I've seen owners break their tenants' leases before the end of the contract. I believe you could make it worth their while by offering some sort of incentive?

But again... maybe try to find other sources of income first.

[Anonymous]

Yes, you can sell a condo with tenants in it. Just be sure to specify how much you are asking for the condo and how much for the tenants.

[Anonymous]

Yes, you can absolutely sell a condo with a tenant in it, but it could limit your buyers. You are more likely to get investors trying to bid low on that occupied condo than people who intend to live in that condo, who would have to wait a year before moving in.

Is the condo cash-flow positive at list price? If not, you're asking buyers to lose money for almost a year before they get to move-in. Also, depending on the tenant, they may need to evict to get them to leave after the year is up.

[Anonymous]

Yes, you can sell a condo with tenants. Just do it subject to the lease or buy-out the lease from the tenants.
Of course, often tenants buy the condo that they are renting--which makes the matter easy.

[Anonymous]

It’s a long process to do this, OP. You have to give them first right of refusal and then you have all kinds of wait periods. Unless you can pay your tenants to leave, or they take lit on you, you will be looking at 6 months+.

[Anonymous]

In DC, tenant has right of first refusal to buy your condo at the listted price. If they choose not to buy it, you need to get a signed document where they state this.

You are allowed to not renew their lease when it ends, for reasons of selling the condo.

I'd talk to them informally to state your plans to sell it. They may be interested in buying; or maybe they were hoping to move out anyway so they'd be happy to break their lease early. If not, you can either buy them out (if they choose to accept); or just put the condo on sale when their lease runs out.

What I did was wait for tenant to leave, then spent a month on some minor renovations, and put it on the market then.

A good realtor can help with a lot of this stuff.

[Anonymous]

Anonymous wrote:It’s a long process to do this, OP. You have to give them first right of refusal and then you have all kinds of wait periods. Unless you can pay your tenants to leave, or they take lit on you, you will be looking at 6 months+.

Maryland does have a new right of first refusal law but it doesn’t add 6 months to a sale (especially if the tenant declines to purchase the unit).

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s a long process to do this, OP. You have to give them first right of refusal and then you have all kinds of wait periods. Unless you can pay your tenants to leave, or they take lit on you, you will be looking at 6 months+.

Maryland does have a new right of first refusal law but it doesn’t add 6 months to a sale (especially if the tenant declines to purchase the unit).

OP said it’s in DC. Unless things have changed it’s a long process. They can draw it out if they say they’re merely interested.

[Anonymous]

TOPA hasn't applied to single units in condos or co-ops since 2018, see https://dhcd.dc.gov/service/tenant-opportunity-purchase-assistance

Agree that it makes sense to first see if the tenants want to buy, or would like to move out. If they don't, chat with a landlord-tenant lawyer in DC about your options. Don't assume a real estate agent will give accurate advice on TOPA.

[Anonymous]

Wouldn't it make sense to borrow against it for a year to see if you can find a job? Since you were hoping to move back in?

I would try to keep it a little longer.

I'm sorry about your job and all the damage to the government. 💔 I hope things get better for you.

[Anonymous]

If you bought it in 1999, why doesn't the rent cover all expenses?
If you need a job, all restaurants are hiring. No experience needed.

[Anonymous]

Yes you can sell it but it unless the buyer would likely want to rent it, it would likely depress the value.

Accordingly your best bets are

1) see if the tenant wants to buy it.
2) see if the tenant would accept a sum certain to terminate the lease early.

[Anonymous]

If the property has positive cashflow it's not always a negative when there is a long term tenant. Especially if your buyer is someone wanting to purchase an investment property. You just have to state that the property is occupied and how much rent tenant pays and when their lease expires in the listing.

[Anonymous]

The buyer would have to honor the current tenant's lease.