One of the most common reasons Twin Cities duplex owners tell me they’re waiting to sell is they are waiting for a tenant or tenant’s lease to expire. And in a booming duplex market where the vast majority of buyers are owner-occupants, on the surface anyway, this makes sense.
After all, most lenders require buyers to move into a property no more than 60 days after they’ve closed on the purchase of it.
So what’s the best way to sell your duplex? Is it optimum to have the units empty?
The answer? Not necessarily.
However, waiting until a unit or property is vacant to sell can also set the duplex owner up for an unnecessary loss of revenue in the event the property doesn’t sell.
There is another way through this problem.
If a multifamily property owner has a tenant on a month-to-month lease, or one that expires in 90 days or less, the simple answer is to let the buyer give the tenant notice to vacate on the day of closing.
The buyer satisfies the lender’s move-in requirement, while the seller doesn’t miss a day of rental income while the property is on the market.
Of course, there are occasions where this isn’t possible. In those instances, some tenants are willing to leave early if they are compensated to do so. They often understand it makes more sense to move out early with costs covered, then to be forced to move out later.
The duplex market remains strong, and it’s still a great time to sell.