Can I sell a rental with tenants still living there?
Yes. A sale does not end an existing lease. I take over the tenants and the leases at closing, and the security deposits are credited to me so I can return them when each tenant leaves. Nobody has to move out for the sale.
If one particular tenant is the problem, not paying or not leaving, my page on selling a house with problem tenants covers evictions and what to do instead.
What do Cincinnati landlords have to deal with?
Besides the tenants, the city. Cincinnati runs a Residential Rental Registration program and rental inspections, and Property Maintenance Code Enforcement responds to tenant complaints with inspections and orders. Every order means repairs on the city's timeline.
The city's code enforcement page lists the rental programs. Older rental houses, the kind most Cincinnati landlords own, tend to fail on the same things: porches and steps, windows, electrical, heating, and smoke detectors. If the city has already written up your rental, see selling a house with code violations.
Can I sell several rentals at once?
Yes. I buy single houses and small portfolios, together or one at a time. Selling them together means one negotiation, one title company and one set of closings, instead of months of listing each house while it sits occupied or empty.
Send me the addresses and rents for each house and I will look at them as a group. If some are in better shape than others, we can talk about selling some to me and listing the rest; I will tell you which way gets you more.
What taxes do I owe when I sell a rental?
Selling a rental can trigger capital gains tax on the profit, and depreciation you claimed over the years may be taxed when you sell, often called depreciation recapture. Some landlords defer tax by buying another rental through a 1031 exchange. Ask your tax preparer before you sign.
The rules depend on how long you owned the property, what you paid, the depreciation you took and your income that year. A short call with your accountant before the sale can make a real difference, especially if you are selling several houses in one year.
What does Greg need to make an offer on a rental?
The addresses, what each unit rents for, whether each tenant has a lease or is month to month, the deposits you hold, how current the tenants are, and anything you know about the condition. If I can see inside the units, great; if not, I can make an offer and adjust once I do.
- A rent roll or a simple list: unit, tenant, rent, lease end, deposit.
- Copies of the leases, if you have them.
- Any city orders or inspection reports.
- Utility arrangements: who pays what.
What happens to the tenants after I sell?
They stay under their existing leases and pay rent to me instead of you. At closing you send each tenant a short letter saying the house has a new owner and where to pay rent from now on. I take it from there.
If you are selling because the houses need more work than they earn, see selling a house that needs repairs.
This page is general information, not legal advice. For your situation, talk to an Ohio attorney.
Greg Carpenter is a licensed real estate agent in Ohio. When Deforest Solutions makes you an offer, Greg is buying the house for himself, not as your agent.