It's no secret that homes are selling like hotcakes in the Salt Lake Valley. Following the boom that began during the pandemic that shows no sign of abating, the average price for a home in the region looks set to surpass $1 million in just a few short years (according to SmartSurvey).
If you're a landlord renting out homes in the area, you might be tempted to sell up and cash in. However, selling a rental property with a tenant already in place is not so straightforward.
You must respect the law and your existing tenant when it comes to rental property sales. Here's what you need to know, and how to get it right.
Tenant Rights in Utah
Before listing your property, familiarize yourself with state-specific regulations. In Utah, tenants have legal protections even when a rental property is sold.
Providing proper notice and respecting the lease terms are essential to staying compliant with tenant protection laws. If your tenants are on a fixed-term lease, the new owner must honor it. If they're on a month-to-month agreement, Utah law requires giving a written 15-day notice before terminating the lease (unless otherwise specified in the rental agreement).
Consulting a real estate attorney can ensure you follow legal procedures correctly.
List Strategically
Timing is crucial when selling in Murray's competitive real estate market. The area has experienced steady growth due to its proximity to Salt Lake City and strong rental demand.
Listing during peak home-buying seasons can help attract investors looking for turnkey properties. Spring and early summer are ideal times for sellers, as buyers are actively searching.
Investors often prefer properties with tenants in place since this setup provides immediate rental income with no leasing downtime. Highlight how your rental fits current real estate market trends to appeal to potential buyers.
Communication Is Critical
Transparency is key when selling a rental property. Inform tenants of your plans early to minimize disruptions and maintain a good relationship. Open communication ensures tenants cooperate with property showings and inspections.
Provide tenants with details about the sale process, including when showings will occur and how much notice they will receive. Offering incentives such as rent reductions or gift cards can encourage cooperation, making the selling process smoother for both parties.
Selling Up, the Right Way
Use these proven strategies to boost your property's appeal to potential buyers:
- Highlight tenant payment history
- Offer current lease details
- Provide recent maintenance records
- Show potential rental income
- Emphasize neighborhood amenities
These details make your property more attractive to potential buyers. Investors appreciate transparency and thorough documentation when considering rental property purchases.
Is Selling a Rental Property Right For You?
Selling a rental property is always a complex decision. You might be ready to retire from the landlord game or just want to take advantage of a favorable market.
Whatever the reason, following the correct, compliant approach is key. Communicate with tenants, follow the law, and market your property strategically to get the most out of your exit. If you're unsure of how to proceed, we can help you.
At PMI Wasatch Front, we help landlords like you get the most from your portfolio, no matter the market. Make sure to consult our free Rent vs Sell tool to get an insight into your options in Murray, UT.
