Great 9 yr tenant in single family home (mo-to-mo lease). They have kept the home EXTREMELY clean inside & out (practically rent ready). Always on time with rent (even thru 2020 Covid shut down). They don't bother me with minor repairs. Furn filters are changed regularly, yard is tip top shape w/mulch. As a small-time LL, I choose consistency over turnover and have never raised the rent ($1,250/mo.) I don't think they can afford much more than that amount. Market rent is now probably around $1,800/mo due to surge in prices over past 2 yrs. Home prices have also escalated so much that I want to sell the home and cash out. This would likely be a retail sale to a 1st time or move up buyer in the $250k price point. Tough to sell a home with tenant in place to a owner-occupant buyer so it would be best if tenant moves out. Tenant can't buy due to self employed status and documenting income. Rental inventory is so low that I think they will have a very difficult time finding alternative housing. Looking for ideas on how to accomplish a smooth transfer without it getting nasty and would like to keep it as friendly as possible. Maybe 60 days notice + some incentives? --216.68.xxx.xxx

Any other ideas? --50.82.xxx.xxx

offer to rent the moving truck! --24.194.xxx.xx

I like your wording WMH. I will build on that. Also like the moving truck idea by "small potatoes". I'm struggling with how to handle it since they are not your run-of-the-mill tenant and i appreciate their loyalty and consistency over the years. --216.68.xxx.xxx

Or do you want a big chunk of cash all at once for some purpose? --68.229.xxx.xxx

Maybe, offer to sell your tenants the home and carry back the first mortgage at 6% interest with a 20% down payment -- if they qualify. You would be saving the sales commission and any needed upgrades. --47.156.xx.xx

Moving truck EXCELLENT idea. They are SOOOO high right now - what used to be a $19.95 deal is now $700 in some areas. --50.82.xxx.xxx

We have the same. We will sell next year. The plan is to offer to them after we come up with the price. Not holding a mortgage. We want to walk away. --73.230.xxx.xx

Robert & DJ...thanks for the suggestions but i'm not interested in seller financing. I think the payment would be too much for them to afford as they are just able to handle the $1,250/mo rent. Some national and regional investment companies have been paying a handsome amount for rentals. I am going to explore a couple of those options before alarming the tenants about moving. --216.68.xxx.xxx

You just as well warn them now. Anybody who buys it as an investment is not going to leave $550+ per month on the table out of the goodness of their heart. Its a business. --67.79.xx.xxx

I would just tell them to move,offering them anything will just be seen as a sign of weakness and they will be a pain so just tell them to move --74.77.xx.xx

Paying on time and taking care of the house is what a tenant should do. --162.249.xx.xxx

Thanks for the "it's a business" comments. --216.68.xxx.xxx

--107.4.x.xxx

Self employed does not mean that they could not purchase a home. I was self employed nearly all my adult life- starting at age 28. Purchased homes multiple times- both my own and rental property as self employed using normal finance. What it does mean is being willing and able to show your income for the prior two years-- and that you paid income tax on it. A few more hoops to jump through, but nothing major. --76.138.xxx.xxx

Since you will probably receive a pile of cash I would offer 3 or 6 months move out reward to be paid after move out if everything goes smoothly. I did this with a long term tenant for $5000 and the place was spotless and they were thrilled plus I deducted it on my taxes. --99.23.xxx.x

Jim, I appreciate your suggestion. I am leaning towards some type of "reward" to help make this a smooth transition. I don't want to give the farm away, but if it takes a couple thousand to ease the stress, I am willing to sacrifice the money for peace of mind. If the situation turns adversarial, I'm not really set up to handle playing hardball with a tenant due to time and navigating the system to properly get them out if things got nasty. This is why I'm selling and not continuing in the rental game. It's a difficult situation because I know how scarce rentals are right now in this area and they have a child who is very entrenched in his school (which is why they moved to my rental 9 yrs ago). I honestly think they are not going to be able to find a replacement property in the next 40 days if I ask them to vacate by 9/1/22. They have also been a great referral source by sending other tenants to me. So, I'm sure in their mind, they've helped me along the way. --216.68.xxx.xxx

In my example my property went from $89,000 to $399,000 so even after taxes and depreciation recapture I netted a pile. Plus they were very helpful to my realtor and moved out on time. $5,000 was like the lottery to them. --99.23.xxx.x

If you want to find a buyer while they are still in the house, offer them a bounty if a buyer buys before they are out, make it enough to make it worth their pain to show the house. However, it is easier to sell while empty, clean, and repaired. --76.178.xxx.xxx

Adding this, make sure they know that they can move early without penalty if they find a place quickly. No one will hold a place for them and it sounds like they can't afford rent on two places at once. --76.178.xxx.xxx

Remember, cash will melt and if you are Medicare age your cost will go up due to the sale. If you don’t need all of the cash now hold the note and save on the tax hit while still making money. --47.205.xxx.x

Pay for the moving truck AND 1st month rent of a storage unit if it starts to look like they won't be able to find a place by their move-out date. Having a place to put their stuff will ease a difficult transition. Then they can stay with friends, relatives, or in a hotel if they are homeless at the deadline. --107.141.xx.xxx

This is probably obvious, but don't directly pay for the rentals. Let the tenant put them on his credit card, then reimburse a pre-agreed amount when you get a copy of the receipt. --107.141.xx.xxx

Do you have other income? There is no place to invest that money. Banks pay no interest. Stock market is uncertain due to economy handling. You are getting money coming in. I am not selling any of my last three for that reason. But I feel that values will be tanking in some areas as the people with the govt. handout downpayments will fail at the mortgages. Govt. may bail them out or seize the homes and make them renters again. --108.24.xx.xx

Who knows, maybe someone wants tenants. --73.230.xxx.xx

--184.4.xx.xx

Thanks for all of the input! After reading all of the comments, my gut tells me to be honest with them and present all of the facts (comparable rents, home values, how much money they have saved over the years with below market rent). I will offer them the opportunity to purchase the home at a fair price. If they are unable to obtain financing, then I have done my good deed and will offer them assistance on a storage unit and moving truck to ease the transition. I understand that I cannot "fix" everyone and I need to man-up and make the uncomfortable choice to initiate action. --216.68.xxx.xxx

--24.101.xxx.xxx

I agree Ray-n-Pay. Now I have to put my words into action. --216.68.xxx.xxx

Also, talk to them first. Tell them you need to follow that chat up with written notice. --98.237.xxx.xx

Single family homes bring the most money when sold to private owner/occupants and there is no reason for the OP to hand his profit over to someone else just because he doesn't want to send his tenants to rent elsewhere. --76.178.xxx.xxx

ORC 5321 allows a 30 day notice, first thing is a rent increase, this will awaken the sleepy tenant that the cost of business is rising and it is on the street they live on also. Lazy management has allowed this to occur, and you can show them they have saved a lot as Sid indicated, more than a deposit and moving cost. Depends where in OH you are, N E has had steep insurance cost from the storms last 3-5 years, I have a place tree limbs killed the roof 3 times in 5 years. --76.190.xxx.xxx

Oregon,if they would lower the sale price of the house enough to make up for the low rent i would buy it,then i would evict the tenant and get the full value of the house,that would make some owners feel better about themselves not being the bad guy but it wouldnt bother me --74.77.xx.xx

Hopefully you have other homes that you can offer. If you do want to keep in the same home, talk to resident and explain that everything is going up and ask what price he would feel comfortable in. Most likely he will than start to check and realize things changed.... --73.191.xxx.xxx

Also, you can refer them to us.... --73.191.xxx.xxx

LEt's make this a WIN-WIN-WIN, instead of forcing her to move, this is her HOME. Why not let her have "dibbs" on it first. HELP HER TO BUY HER HOME - if credit dinged, help her, if she is worried about maintenance and repairs, BUY a Home Warranty. You will not have to pay any commissions nor would you lose any payments if structured properly. HELP HERE with down payment or first time homebuyer assistance... Your Thoughts, i would pursue this first before forcing her to move and sell. --207.98.xxx.xxx

Before I send a letter I would call my tenant and tell them of my plans to sale. --97.95.xxx.xxx

--99.140.xxx.xxx

Even in a hot real estate market buyers will ask sellers to pay closing costs. The market is slowing down and I understand you want to liquidate before the inevitable burst. And to do that I would— pardon the phrase —“shoehorn“ them into the property --69.132.xxx.xxx

I have recently received a letter from Diamond Equity Investments and they want to purchase one of my properties directly and "as is", vacant or occupied with paying tenant or non-paying tenant. This property is a 4-beds single family house with a family of tenant living there for 9 years. Every year I increased the rent (from beginning $1450 to now $1800). They pay the rent on time and take care of the repairs (when I pay for the material cost). So although I am planning to sell one of my properties each year from now on, I was not going to sell this house until I received this letter. Since Diamond Equity Investments wants this single family house and does not need me to vacant the house, I have made an appointment with them to let them to view the house. I will see whether this is a right decision, but I think this might be a solution for a house with "Great tenant" since you do not need them to leave. --98.35.xxx.xxx

Raise the rent. That is how I was able to tenant to move and then sell my condo. --24.184.xxx.xxx

I would transfer them to another unit if I had one available. If not, I may see if another landlord in the area (that I trust and would treat them well) had anything that may work for them. Then, I would be honest with the tenants, so they know they are appreciated. --76.189.xxx.xx

As I approached retirement. I started selling my rentals. I have a 15 year plan. Sold in no particular order. I advised all my tenants I was selling. I had three tenants buy the home they had rented. 25 year, 18 and 16 years respectively. I looked at no break in service, no lost rent over the years, minimal preventive maintenance and no realtor commission. 2 others, we went to a real estate attorney for the owner carry paperwork, and a private firm that handles all the paperwork, i.e., mortgage payments that included insurance and property taxes. It protects you and the tenant. My opinion, long term tenants put more money in your pocket then 1/2 year tenants. Share the wealth, help them purchase their home. Remember, it's your house, but it is there home. Now it is theirs permanently. --47.5.xx.xx

This is such an interesting topic for discussion! I am not tempted to liquidate any of my properties, because I have not found a better place to stash savings than in real estate that you rent to others. I do have some properties that I have considered selling over the years, and one that I did sell a couple years ago (because it was outside the county in which I reside and in which ALL my other properties are located, in a different court system); I took the tax hit and used the remainder of the proceeds to pay off the mortgage on an apartment building I had purchased years prior. If I do sell any of my other rental properties, I would do a 10-31 Exchange to another property (or properties) and defer the tax burden. I would find it extremely hard to get rid of any of my good tenants, but maybe sometimes there are good reasons to do so. I agree with the person who suggested that you give your current good tenant first dibs at purchasing the property. The fact that they cannot quality or afford it is irrelevant. This puts them in the position of making the decision to move, not you. I would simply write them a letter (not tell them in person or on the phone) stating that the decision has been made to sell the property in which they reside and that you wanted to give them first opportunity to purchase the property. Also mention that, due to inflation and ever increases in expenses, you were going to have to significantly increase rents on all properties, unfortunately, and that was a part of the decision to sell the property. I'd give them at least a 60-day notice and apologize for any inconvenience, telling them how great tenants they have been and offer to assist them by giving them a glowing reference for any other property they find or a credit reference if they decide to purchase a property. I would not offer to pay for anything further. You may be surprised at what "hidden" damage you find once you take possession of the property and start to spruce it up. If you find that these tenants are all you think they are now at that time, you will have their forwarding address already to mail the refund of their security deposit, you can do as your heart leads you to give them a bonus (check, gift card, etc.) along with another nice letter about how you have so appreciated them over the years. Wishing you the best success! This has to be one of the hardest things, releasing a good tenant who does not want to move ... but there are many very hard things in this business for us LLs ... we are tough cookies; we can do it when necessary ... --99.110.xxx.xx

You don't.just cash out refinance! --70.241.xxx.xx

Why get rid of a good tenant? You stated that you just wanted to move on. Sounds like you may not actually need the money. Why not sell it to the tenant as a lease purchase at a market price or above. Tenant may not realize that they can actually "own" their own home. Might be able to give some credit for a portion of prior or future payments. Everybody wins here. --108.72.xx.xx

--73.103.xxx.xxx

BRAD --73.103.xxx.xxx

If you have been a landlord for a long time like me, we have made a ton of money (millions). This business has been great to me and others. I believe one must pay it forward. --72.239.xxx.xx