Ask Phyllis: a blog series of frequently asked real estate questions. Please email us here.
Tired of Being a Landlord
Dear Phyllis,
I look forward to your questions and answers. My husband and I purchased a La Crescenta duplex over twenty years ago. He managed the property, but he passed a few years ago. After my husband’s passing, one of the tenants has caused me a lot of grief. They are consistently late with their rent and have just got a big dog, which violates their lease. Managing tenants is overwhelming. I am tired of being a landlord and want to sell.
After talking with my accountant, I will have a huge capital gains tax, so selling for the most money is not a priority. I simply no longer wish to be a landlord. The one tenant is very uncooperative. I believe if I list the property, because of COVID, they will not let anyone inside. What do you suggest?
Gina
Dear Gina,
I can understand that you are tired of being a landlord. It is not for everyone. As an alternative, you might consider hiring a property manager so you no longer need to interact with your tenants. However, if you decide to sell, there are several approaches you can take.
First, after hiring a Realtor, ask them to contact the more cooperative tenant. They may be willing and able to purchase your property. In addition, they may already have an amicable relationship with the other tenants and can help secure cooperation for showings, especially if they expect to become the new landlord.
Next, your Realtor can prequalify the tenant buyer. They can also negotiate on your behalf and complete all required disclosures. In addition, they can manage point-of-sale requirements, such as smoke and carbon monoxide detectors and water heater strapping.
If the tenant is unwilling or unable to purchase, you still have another option. You can list and sell the property with the understanding that the buyer may not gain access to one of the units for inspections or appraisal. Since COVID, appraisers sometimes rely on drive-by appraisals. However, limited access typically results in buyers requesting a lower purchase price.
Best of luck to you!
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