As a popular luxury vacation destination, Park City and Deer Valley are great for real estate investors. Whether you’re renting a property to a long-term tenant who lives here year-round, or you operate a vacation rental, there are many opportunities to diversify your portfolio here.

But there might come a time when you no longer wish to own the property for some reason or another. Selling a vacant property is one thing, but how do you sell a rental property with tenants in it?

Open communication, organization, and choosing the right real estate agent are just a few things that can make a big difference. Let’s take a deeper dive.

If You Are A Long-Term Investor…

Long-term investors are probably the more traditional type of investor. If you’re renting a property to a tenant long-term and your property is their primary residence, you’re likely a long-term investor.

Selling your rental home when you have a long-term tenant in the home can sometimes present a challenge. Here are some things you should know.

The Tenant Must Be On Board

As a seller, it’s your responsibility to make sure you and your tenant have aligned expectations. In reality, your tenant is the key to making the property shine. They can make or break your sale so it’s important that they are on board, whether you incentivize them or not. They are the ones living in the home, so they will also be the ones tidying up before showings and making sure the home remains in good condition for the duration of the sale.

Be Respectful

If you expect respect from your tenant, you should give respect in return. Providing tenants at least 24 hours notice before showings or appointments is the minimum requirement. It’s important to plan accordingly and communicate so your tenant knows what’s happening.

Read the Lease

It’s unlikely that you know every single clause in the original lease your tenant signed. Especially if it was signed long ago. Before listing your income property, make sure you carefully read over the lease agreement and make sure you understand everything. Clauses about when and how you notify tenants are particularly important, as well as provisions for how the notifications are acknowledged by the tenant.

Be Transparent

Let your tenant know ahead of time what might be required of them. For example, will you need to photograph the property? For privacy reasons, your tenant may object to this. Will you want to show the property when they are out of town? You’ll need to organize a process that works for both parties. Was the rental furnished? It wouldn’t hurt to remind the tenant which furniture is part of the rental versus which is their own. Transparency and honesty is always the best policy when you have more than one party involved in selling a home.

Looking for real estate investment posts? Here are some blogs you might find interesting: 

• Is Park City Good for Investors?
• What to Know About Investing in a Park City Vacation Home
• What are the Tax Implications of Owning a Vacation Home

If You Are A Short-Term Investor…

As a sought-after year-round vacation destination, it’s common to see investors rent out vacation properties as short-term rentals. The turnover for these properties is much shorter. In any given year, a vacation property might have dozens of tenants come through.

Selling your vacation rental property has its own set of unique challenges, but there are things you can do to make the process easier.

Find a Window in the Bookings

Nothing is more frustrating for a buyer than seeing a gorgeous vacation property just listed, but when they try to book a showing, they can’t because it’s being used by vacationers.

Selling a short-term rental home requires a little more forethought. Look for a window in your bookings and try to plan your sale around that. Ideally, all the prep work should be done in advance so it aligns with your window. That way, buyers can visit the property immediately and capitalize on the excitement. Ultimately, more initial interest and showings result in more offers and potentially a faster sale!

Digital Media is Your Friend

As with any modern real estate listing, digital marketing is essential. Beautiful video walkthroughs, Matterport virtual floor plans, and captivating professional images are just a few ways you can showcase your property if by some chance you have missed your booking window and the property is being used by vacationers again.

Investment property or not, selling your home is a big decision. If you have more questions about selling real estate, here are some more posts you might find interesting;

• How to Sell a Ski-In, Ski-Out Property in Park City
• Do You Need to Stage a Home to Sell it in Park City?
• How Long Does it Take to Sell a Park City Vacation Home?

For Short- And Long-Term Investors

Whether you’re selling a home or a vacation rental, here are a few items you should consider when selling any tenanted property:

Don’t Forget the Seller Disclosure

A seller disclosure statement is a document that discloses everything the seller knows about the condition of the property. While this often relates to things like repairs and permits, there are a few things to disclose if you’re selling a tenanted property.

For short-term rentals, you should disclose any future bookings and for long-term rentals, you should disclose anything about the lease or your agreements with the tenants.

Property Managers Are Your Friends

As an investor, you likely already know the value of an excellent property manager for your rental property. These companies are designed to help make your life easier. Why shouldn’t that apply to the sale of the property as well?

By being transparent and keeping in good communication with your property manager, you can ensure no stone is left unturned. For vacation rentals, they would have access to your calendar of bookings and can help advise you on planning or blocking out dates for rentals. Property managers also have intimate knowledge of the home and can advise you on potential issues you didn’t anticipate.

Overall, your property manager is just one more important team member when it comes to selling your rental property.

Still have questions about real estate investing in Park City? Read these posts next! 

• What to Know About Hiring a Property Manager in Park City
• Stocks Vs. Luxury Real Estate: What’s the Better Investment?
• How to Attract Renters to Your Park City Investment Property

Selling a Rental Home in Park City or Deer Valley?

Here at CFH, we’ve helped countless long-term and short-term investors successfully sell their rental properties with minimal stress and maximum success.

Although there are a few extra things to consider when selling a tenanted property if you work with an experienced local real estate expert, you can expect a smooth transaction from start to finish.

Get in touch with our team today and see how we can help prepare, market, and sell your Park City investment property. Call us at 435-647-8035 or email info@CFHparkcity.com today!