The Seller’s Advantage Guide to Selling Your Tenanted Los Angeles or Las Vegas Property for Cash
Maybe you weathered the storm of the pandemic and the inflationary period in its wake or got into the landlord business after all of the shutdowns to leverage your free cash. But now you are concerned about the upcoming market or tired of dealing with tenant issues.
Seller’s Advantage is the premier cash home buyer in Los Angeles, California, and Las Vegas, Nevada, and would like to help you get out from under the burden of owning rental property. Seller’s Advantage can close on your rental property, help you with tenant notifications and meeting their rights, and free you from obligations in as little as seven days or as fast as California regulations allow.
We’ve created this guide for selling tenanted Los Angeles or Las Vegas properties for cash to explain what will happen when you sell your rental property(ies) for cash and what headaches we can eliminate when you decide it’s time to sell. After reading this guide, we believe you will feel comfortable with your decision and will meet your obligation to your tenants.
Understanding the Los Angeles Rental Market
Nowhere in the country would you deal with the complexity that you face in the Los Angeles rental market. Not only do you deal with all of the state regulations, but local leaders also can change regulations with little notice, leaving you faced with new rules that didn’t exist when you entered the market.
Current trends in the Los Angeles rental market
Rents have been trending down throughout the last half of 2023, according to apartmentlist.com. Average rents in Los Angeles fell 1.2 percent in November, down 3.4 percent below the previous year.
Los Angeles rental property owners certainly have ridden the waves of the rental market since the pandemic began in 2020 and have to be wondering when and at what price point the market will eventually settle. After plummeting 9.9 percent in 2020, median rentals surged 15.6 percent in 2021 before leveling off to a 1.6 percent increase in 2022. Does the 2023 decline continue to level the playing field before median rents settle in again at modest growth rates before 2020? Or will the corrections continue into the coming year? Those questions might leave you wondering whether it’s worth holding onto your rental property.
The challenges and opportunities of selling a tenanted property
When selling a tenanted property, you have two choices: sell the property with the tenant intact or vacate the property before putting it on the market. If you empty the property by moving tenants out at the end of their lease or incentivizing them to leave early, getting the property in tip-top shape and scheduling showings will be easier. Still, the new owner will be faced with finding new tenants. Selling while tenants live there gives the new owner a steady income to begin recouping their costs. The new owner will be obligated to abide by your current leases.
Legal considerations for selling a property with tenants in California
California is the most tenant-friendly state, so many regulations are in place for how you can sell your tenanted property. First, you must give 120 days’ notice of your intent to sell before showing the property. When you are ready to sell, you must provide tenants with 24 hours’ notice before any showings. You also must give 30 or 60 days’ notice when you sell the property.
Understanding the Las Vegas Rental Market
The rental market in Las Vegas faces fewer regulations, so selling a tenanted property is more straightforward.
Current trends in the Las Vegas rental market
Las Vegas also faces a downward correction in rental rates, with the median rent dropping 0.7 percent in November, leaving it down 2.5 percent year-over-year.
Following a massive 27.8 percent increase in median rent in 2021, the Las Vegas market began to cool off with a 4.5 percent drop in 2022.
The challenges and opportunities of selling a tenanted property
Selling a tenanted property in Nevada faces the same choices: waiting for tenants to vacate or selling with tenants.
Legal considerations for selling a property with tenants in Nevada
Nevada has no regulations on notifying tenants of the potential sale of a rental property. They merely need 24 hours’ notice before showing the property. A new owner must meet lease terms if the tenant remains in good standing.
The Benefits of Selling for Cash
Speed of sale
Choosing a cash sale will speed up selling your rental property in LA or if you need to sell my house fast in Las Vegas. In California, you will need to wait the required 120 days after giving notice of intent to sell, but Nevada has no such restrictions.
Certainty of sale
With a cash sale, you have the certainty of the sale. Seller’s Advantage conducts an inspection before offering a sale price, then sticks to that price. If you enter the market, you may receive offers and have them withdrawn after an inspection or have potential buyers unable to come up with the offered sale price.
You’ll deal with more hassles when you sell your rental property through the traditional market. If you have multiple buyers interested in the property, you must notify tenants each time you want to show the property and hope they keep the premises in good condition. You’re also likely to go through multiple negotiations to get a price near what you desire.
Seller’s Advantage Cash Offer Process
Seller’s Advantage makes the sale of your rental property quick and painless. You don’t need to involve a real estate agent and pay a commission.
Step-by-step guide on how Seller’s Advantage makes cash offers
How do five easy steps to sell your rental property sound? It’s that easy:
- Contact us online to register your property.
- We’ll call you to discuss the property and your closing requirements.
- We schedule an on-premises property inspection and make an offer at that time.
- We give you all the time you need to consider our offer to make the best decision for you and your family or business.
- You accept our offer, and we arrange the cash transaction, including setting up an escrow and title process to complete the sale as quickly as possible.
The quick and easy closing process with Seller’s Advantage
Sellers’ Advantage pays all closing costs and handles all the closing arrangements, so you merely have to wait for your cash payment.
Legal Considerations and Compliance
Dealing with California’s regulations will slow the sale of your rental property, but Nevada laws won’t hamper your desire to sell for long.
Understanding California and Nevada’s landlord-tenant laws
If you want to sell your rental property under the terms of your current leases, a buyer must agree to abide by those terms before a purchase. If you wish to oust your tenants before selling, you must comply with any escape terms in the lease or let the lease lapse and give the tenant 30 days’ notice that you will not renew the lease. If you have month-to-month leases, California requires 60 days’ notice to terminate the lease, while it’s 30 days in Nevada.
California law requires you to provide 120 days’ written notice that you plan to sell the property. You also must give 24 hours’ notice before showing a property. Nevada has no requirements to notify the tenant of your intent to sell to a cash for houses company but requires 24 hours’ notice to show the property.
Navigating lease agreements and tenant rights during the sale
The simplest way to sell your tenanted property in Southern California or Nevada is to leave the lease terms in place for a buyer to adopt. You gain the advantages of respecting your tenants’ rights and providing the buyer with an income-producing property.
Preparing Your Property for Sale
You can choose what improvements you want to make to your property before selling, but Seller’s Advantage buys properties as-is, so you might prefer just to meet the legal requirements for selling your property.
Communicating with tenants about the sale
You must give 120 days’ notice of your intent to sell in California. In Nevada, you have no legal obligation but might want to notify tenants before scheduling showings just to be polite.
How to handle tenant leases?
If you have buyout clauses in your leases, you can consider exercising the option before selling or letting the buyer exercise the option. Any termination would require a violation of the lease by the tenant. Otherwise, leases can simply be transferred to the buyer, who must agree to the existing terms.
The Seller’s Advantage Experience
Seller’s Advantage has purchased thousands of properties over the past 25 years and can make your experience simple and satisfying.
The personalized approach of Seller’s Advantage to each property sale
Seller’s Advantage eliminates the need to invite a parade of property investors to visit your property, requiring multiple notifications to your tenants. We send one of our experts to inspect the property and prepare an offer on-site. It’s that simple.
Why Seller’s Advantage is the best choice for selling tenanted properties in LA
Seller’s Advantage has been buying homes and rental properties Nevada and California for over 25 years. We maintain an A+ rating with the Better Business Bureau and have compiled an average 4.8-star rating with hundreds of reviews across the various social media platforms.
Contact us today to sell my house fast Los Angeles by providing the address of your rental property on our website or call us at 1-800-208-3243 to start the process while ensuring you remain in compliance with meeting your tenants’ rights.