Tired Landlords FAQ: Questions New York Homeowners Ask
Hudson River Realtors | Referral Network Serving New York State
Can I sell my rental property with tenants still living there?
Yes. In New York, leases survive the sale — the new owner inherits the tenant. Month-to-month tenants can be given proper notice to vacate. Many investors prefer to buy occupied properties with reliable tenants in place.
What is depreciation recapture?
When you sell rental property, the IRS taxes the depreciation you claimed (or should have claimed) at a maximum rate of 25 percent. This is in addition to capital gains tax on your profit. A 1031 exchange can defer both.
How does a 1031 exchange work?
Sell your investment property, have a qualified intermediary hold the proceeds, identify a replacement property within 45 days, and close within 180 days. All capital gains and depreciation recapture taxes are deferred to the replacement property.
Do I need to evict tenants before selling?
No. You can sell with tenants in place. If you want the property vacant, you must follow New York's notice requirements (30, 60, or 90 days depending on tenancy duration). You cannot evict a tenant solely because you want to sell.
What is a cap rate and why does it matter?
Cap rate (capitalization rate) is net operating income divided by the sale price, expressed as a percentage. It measures the investment return independent of financing. Investors use it to compare properties. Higher cap rates mean higher returns relative to price.
Should I make repairs before selling a rental?
It depends on your buyer pool. If targeting investors, they expect some deferred maintenance and price accordingly. If marketing to owner-occupants, basic repairs and cleaning improve sale price. Your agent can advise on the return on investment for specific repairs.
Can I sell just one unit of a multifamily?
Only if the property is a condominium with individually deeded units. Traditional multifamily buildings (2-4 units) are sold as a single property. Converting to condominiums is possible but involves significant legal and regulatory requirements in New York.
What if my rental has deferred maintenance?
Disclose all known issues, price the property to reflect its current condition, and target buyers who are comfortable with renovation. Many investors specifically seek properties with deferred maintenance because it reduces the purchase price.
How long does it take to sell a rental property?
Investment properties typically take 30 to 90 days to sell in the Hudson Valley, depending on condition, pricing, and market conditions. Properties with strong financials and cooperative tenants sell fastest.
How can Hudson River Realtors help me sell my rental?
We connect landlords with agents who specialize in investment property sales. They understand cap rates, tenant situations, 1031 exchanges, and investor marketing. The referral is free — we are compensated by the agent at closing.