Start with the lease
Before marketing or contracting the property, know whether the tenant is month-to-month or under a fixed-term lease, what rent is being paid, what deposit is held and whether there are any side agreements.
Does the lease survive the sale?
Often, a valid lease continues after ownership changes, but the exact rights and notice requirements depend on state and local law. A seller should not assume a sale automatically terminates a tenancy.
Why investors may prefer occupied property
If the tenant pays reliably and the rent is reasonable, an investor may value the existing income and avoid the cost of vacancy and lease-up.
What if the rent is below market?
The lease term matters. A buyer may underwrite current income until expiration and future income after lawful rent adjustments. Below-market rent does not make the property unsellable; it changes the valuation.
What if the tenant is a problem?
Disclose the situation. Delinquency, property damage, pending eviction or disputes affect value and closing strategy. Trying to hide the problem usually creates a worse problem later.
What about security deposits?
Deposits are typically accounted for through closing and transferred or credited according to the lease and applicable law. Keep clean records.
Auctus reviews occupied rentals and portfolios nationwide. Send the property or call 706-818-8831.