Things to Consider when Selling an Apartment with Tenants in NYC

  • 5 years ago
Selling an Apartment with Existing Tenants in NYC: https://www.hauseit.com/selling-an-apartment-with-existing-tenants-nyc/

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Selling an apartment in NYC with existing tenants in place can be much more challenging than selling a vacant apartment. This is especially so if you’re selling a co-op or a single-family home which is not catering to an investor buyer base, as the buyer will likely be an owner-occupant who won’t want a tenant to be in place post-closing.

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If you’re selling a condo or a multifamily property, having an existing tenant can actually be beneficial. This is because the majority of investor buyers would ideally like to have a tenant in-place as quickly as possible after closing. In some cases, investors specifically look for units with tenants in place in order to minimize the risk of vacancy (and zero cash flow generation) after closing.


Regardless of what property type you are selling, the best case scenario is to have an existing tenant on a month-to-month lease.

Investors will like the idea of carrying over the tenant post-closing, and owner-occupants will appreciate the flexibility of being able to terminate the lease so that they can take occupancy of the property right away. It’s also equally valuable to have a tenant in place, provided that the lease has an early-termination clause in the event of a sale.

The key disadvantage of having a tenant in place, regardless of the lease terms, is the fact that it’s significantly more difficult to accommodate private showing requests and hold open houses. Another disadvantage is the possibility that the tenant keeps the unit in an unsightly condition, perhaps even so bad to the extent that it’s not possible to take professional photos.

Is It Easier to Sell a Vacant Apartment or One with a Tenant in Place?

It’s much easier to sell a vacant apartment. If the lease does not clearly lay out the notice period for showings, a tenant could make unreasonable demands such as requiring 3 or even 5 days’ notice for any viewings.

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