Owning a rental property can be a great way to build equity and make money. But eventually you have to sell it, and the process can be more complicated. That’s what happened here.
THE CHALLENGE
This condo was tenant occupied and the lease was coming to an end. The seller was concerned about carrying the condo for several months without rent; she didn’t have the spare cash to pay a 2nd mortgage and condo fees for a long time.
An added challenge was that the tenant was not cooperative. They were upset that they’d maybe be forced to move out and not have their lease renewed.
THE SOLUTION WE PRESENTED
When John Carle from the Nice Agents went to see the condo with the seller, he noted that the tenants kept the home in good condition. It’s pretty easy to tell when a renter just cleans up for the landlord but doesn’t take care of the property; that was not the case here. He further identified that they were paying a good amount of rent, and the landlord confirmed that they always paid on time.
John had a conversation with the renters, suggesting that if they cooperated with the showings he would focus his marketing efforts on finding them a new landlord to purchase the property rather than turning it into an owner occupied property and moving them out.
The tenants agreed. They were eager to stay where they were for the convenience of work and school. They really didn’t want to move.
John marketed the condo with a focus on it including long term tenants who always pay on time and take good care of the property. He then targeted areas outside of the capital region, Toronto and Vancouver specifically. The low cost & strong cash flow quickly drew the attention of a strong buyer from Toronto.
THE RESULTS
The Toronto buyer bought the condo without ever seeing it. They liked the cash flow and that it was “armchair investing”; they didn’t need to find a tenant.
After a shockingly quick due diligence and condo document review, we closed the sale quickly. The seller got her money a mere 30 days after we went onto the market, the Toronto buyer got a great investment, and the tenants got to stay where they were.
