Selling with Tenants in Place
In New York, you can sell a rental property with tenants still occupying the unit. Lease terms transfer to the new owner. If you want the property vacant for sale, you must wait until the lease expires and provide proper notice. Month-to-month tenants require 30-90 days notice depending on tenancy length.
1031 Exchange Considerations
If you want to defer capital gains taxes, a 1031 exchange allows you to reinvest the sale proceeds into another investment property. The rules are strict: you have 45 days to identify replacement properties and 180 days to close. Working with a qualified intermediary is required.
Pricing a Rental Property
Rental properties are valued differently than owner-occupied homes. Investors look at cap rate, gross rent multiplier, and cash-on-cash return. Owner-occupant buyers look at condition and livability. Deciding which buyer pool to target shapes your pricing and marketing strategy.
- Selling to an investor: price based on income potential, accept as-is condition.
- Selling to an owner-occupant: price based on comparable sales, may need to vacate and refresh the property.
