Ask Phyllis: a blog series of frequently asked real estate questions. Please email us here.
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 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 tenants are 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’s not for everyone. You might consider hiring a property manager, so you no longer need to interact with your tenants. However, if you do decide to sell, there are several ways to approach this:
After hiring a Realtor, have them contact the more cooperative tenant. They may be willing and able to purchase your property. Perhaps they have an amicable relationship with the other tenants. They may get them to cooperate with showing, knowing that they will soon be their new landlord.
Your Realtor will prequalify the tenant. They will negotiate on your behalf and complete all the necessary disclosures. They can manage the point-of-sale requirements, such as smoke and carbon monoxide detectors and water heater strapping.
If the tenant is unwilling or unable to purchase, another route would be to list and sell the property with the understanding that the buyer may not have access to the one unit for the appraisal or inspections. Since COVID, in some instances, appraisers only conduct drive-by appraisals. Of course, if there is no access to the one house, any buyer will expect a sizable discount.
Best of luck to you!
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