When it comes to selling a rental property, there are many steps involved before even putting the home on the market. Besides the usual checklist of hiring an agent, repairs, getting all the necessary documents together, also on the list is writing and sending a letter to notify the tenant of the sale of your Long Island property. But what exactly goes into a notification letter?
Drafting your notification of sale letter does take a bit of time and research on the landlord’s end. You will also want to follow Long Island’s notification rules and regulations for tenants and landlords. That way, your letter would hold up in court, if need be. Find out below what goes into a letter to notify the tenant of an upcoming sale of a property on Long Island.
Let’s take a step back for a second and determine how you intend to sell your property. Typically, when it comes to selling a property, prospective buyers are not looking for a home with tenants. Unless you can find a buyer willing to keep your current tenants, selling your home can prove to be more difficult when tenants are included. So you really have two options when it comes to selling your rental property:
If you intend to increase your chances of selling after the tenant’s lease is up, it would be wise to look into the terms of the contract.
Different lease agreements typically require different amounts of time to notify your tenant of your intent to sell the home and need to vacate. Two typical lease agreements are:
A month-to-month lease agreement is a lease that continues each month until either party gives notice of termination. In New York, lease terms that are less than 12 months are not required to be in writing. However, written rental agreements would be highly recommended, so landlords and tenants have a document to refer to with rules. If neither the landlord nor tenant in a month-to-month agreement gives notice, the contract automatically renews. In other words, the arrangement continues until one party gives formal and proper notice to the other.
Recently, in the state of New York, by law, a 30-90 days notice must be given to the tenant to move out and also specify the date on which your tenancy will end.
The laws are as follows:
A month-to-month tenancy is more flexible for a landlord to sell, but with the recent change in New York laws and depending on how long your tenant has been leasing the property could delay your plans to sell.
A fixed-term lease is a contract between landlords and tenants that spells out the obligations of both parties. There is usually a time period associated with a rental, and the lease should state what this time period is, such as from October 31 of the current year to September 30 of the following year. This would be an example of a 12-month lease. Although a 12-month contract is the most common fixed-term lease, a fixed term can be for any length of time agreed upon by the landlord and tenant.
By law, landlords must notify their tenants when they plan not to renew a lease agreement with a current tenant. The same rules apply for fixed-term lease notification: Tenants with one-year leases who have been in their homes less than a year are entitled to 30 days’ notice. Those in their homes for one to two years get at least 60 days, while those who have lived in a property for more than two years get at least 90 days.
A fixed-term lease is better for landlords and tenants who want a more stable and secure arrangement. Once the renter signs the agreement, the landlord can count on a monthly income source for the lease term.
Unfortunately, fixed-term leases, though stable, can prolong your plans to sell your rental property. And typically, potential buyers will not be interested in a home that has tenants attached to it.
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