Landlord doesn't want to sell after all

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afoolwithmoney
Posts: 31
Joined: Sun Aug 30, 2015 10:31 pm

Landlord doesn't want to sell after all

Post by afoolwithmoney » Tue Aug 13, 2019 6:46 pm

Our landlord (house) suggested he wanted to sell the house and we got really excited, since it's better than the other ones we've seen in our area (SF Bay Area). But now he's changed his mind, says he wants to wait a year or more, so he can align the sale of the house with buying a new one, I guess to save on taxes. Are we out of luck, or are there any strategic suggestions you might have to lock the place down and stop wasting money on rent? Rent-to-own? Threatening to walk?

sergio
Posts: 383
Joined: Sat Jun 20, 2015 6:52 pm

Re: Landlord doesn't want to sell after all

Post by sergio » Tue Aug 13, 2019 6:53 pm

Pretty sure you are out of luck if this was something he only casually mentioned (or "suggested").

What exactly would you be walking away from? Your lease? Expect to get sued.
Last edited by sergio on Tue Aug 13, 2019 6:58 pm, edited 1 time in total.

stan1
Posts: 7217
Joined: Mon Oct 08, 2007 4:35 pm

Re: Landlord doesn't want to sell after all

Post by stan1 » Tue Aug 13, 2019 6:57 pm

You could offer him more money. That might convince him to sell now not in a year or more.

chevca
Posts: 2667
Joined: Wed Jul 26, 2017 11:22 am

Re: Landlord doesn't want to sell after all

Post by chevca » Tue Aug 13, 2019 8:41 pm

Yep, ask him what the 'buy it now' price is. If he gives you a number and you're willing to pay that....

Rent-to-own could be another thing to bring up with the landlord.

Ultimately though, it's his place and he can do as he chooses. Probably part of why you don't want to be a renter any longer, right?

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Escape Velocity
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Re: Landlord doesn't want to sell after all

Post by Escape Velocity » Wed Aug 14, 2019 11:20 am

I'm a landlord and had a similar situation, and here's what I did:

The tenant e-mailed me out of the blue to see if I was interested in selling the house to him. I liked the tenant (young family) and knew they were likely to move if I did not want to sell. But in fact I was planning to sell of a couple of properties, and this one was a year or more away from that, according to my plan. But I could changed my plan.

So I told him we could see if there was an arrangement that made sense. I told him I could not close until the new year (for tax purposes) - about 6 months away.

We agreed on a price, and I lowered it by half of the saved sales commission. Then we agreed to have him pay the remainder of the rent, and I would take out $$ for property taxes and insurance, and I would put the rest of his rent into an escrow account, that he would get back if the sale when through, and I would keep if he decided to move instead. We also agree that he would take care of any maintenance issues between our agreement and the sale.

While this left some of his rent money on the table and not in my pocket, it saved me more, I think, that would have been required to make the house sale-worthy for a new buyer. It needed a new driveway, roof was showing its age, and then just all the internal freshing that is always needed when a long-time renter moves out.

So this turned out to be a win-win situation in both of our eyes. I think he may have gotten the better financial deal, but I got a no-hassle house prep & sale, and that was worth a lot to me. Plus we liked the tenant's family, and are happy they were able to keep loving our former house.

Not sure this would work for most landlords, but if you have a good relationship, you could raise the subject with him.

Best of luck,

EV

J295
Posts: 2069
Joined: Sun Jan 01, 2012 11:40 pm

Re: Landlord doesn't want to sell after all

Post by J295 » Wed Aug 14, 2019 3:48 pm

Find another home
Or
Pay more money for current rental.

cherijoh
Posts: 6045
Joined: Tue Feb 20, 2007 4:49 pm
Location: Charlotte NC

Re: Landlord doesn't want to sell after all

Post by cherijoh » Wed Aug 14, 2019 4:07 pm

afoolwithmoney wrote:
Tue Aug 13, 2019 6:46 pm
Our landlord (house) suggested he wanted to sell the house and we got really excited, since it's better than the other ones we've seen in our area (SF Bay Area). But now he's changed his mind, says he wants to wait a year or more, so he can align the sale of the house with buying a new one, I guess to save on taxes. Are we out of luck, or are there any strategic suggestions you might have to lock the place down and stop wasting money on rent? Rent-to-own? Threatening to walk?
I expect he may want to do a 1031 exchange.
Some basic principles are the properties must be held at least a year, be used for business, the replacement property must be identified in 45 days and bought in 180 days. If all of these requirements are met and a few others, a rental property can be sold without paying any taxes on the profit or recaptured depreciation.
With that in mind, you might want to try and work something out like Escape Velocity discussed.

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