When it’s time to sell rental property Dubuque residents must navigate Iowa tenant laws. The City of Dubuque also has strict rental licensing requirements that you must follow, so it’s important to understand the law before listing the property. The good news is that while you must follow certain steps, you can successfully sell your rental property even if you currently have tenants in place.
Yes, you can legally sell your rental property in Dubuque, but you must understand and follow Iowa law. Under Iowa Tenant law, a landlord has the legal right to sell a property with tenants, but that sale will not automatically terminate the lease. If you have a fixed-term lease, the new owner must honor it until it expires, while you must give a 30-day notice to month-to-month tenants. If you plan to show the house, you must adhere to the entry terms specified in the lease, and you will need to transfer the security deposit to the new owner. It’s also important to make sure the property has an unrevoked and current residential rental license before listing, which is required for safety code inspections.
When it’s time to sell rental property Dubuque residents have three options: sell with tenants in place, sell vacant, or sell as-is to a cash buyer.
Selling with tenants in place is a good option if another investor or landlord is buying the property. It’s appealing because the property offers immediate income, there’s no eviction hassle, and it reduces downtime and lost income. This option can also benefit the tenants, since they don’t have to worry about finding a new place to live. It’s important to be transparent with both parties so the buyer knows what to expect from the tenants and the tenants know what to expect from the sale.
If you choose to sell the property without the tenants, you need to follow the proper legal process. You must allow the tenants to finish the remainder of their lease or provide a 30-day notice, depending on the terms. Once the property is vacant, you’ll need to make any necessary repairs, cleanings, or updates to get the highest return. You may also need to stage the house to appeal to homebuyers. The Dubuque real estate market is currently taking between 3 to 6 months for homes to sell, so you’ll want to keep that timetable in mind.
If you want to sell the property quickly without worrying about making repairs, selling as-is to a cash buyer could be a good option. You don’t have to worry about paying commission to a realtor, cleaning, making repairs, or staging the house. Selling to a cash buyer is typically faster than traditional sales, with many completed in just a few weeks. While selling as-is can be a great option, especially if the tenants left the property in bad condition, your return may be lower than through a traditional market sale.
Find out how you can get fair market value for your home with a cash offer from Dubuque Home Buyers today!
Before you sell your Dubuque rental property, you’ll want to keep these considerations in mind.
Your Residential Rental License Must Be Current - Since 2015, all Dubuque rental property owners have been required to have a current residential rental license. The purpose of this license is to ensure the unit meets all of the City’s safety codes, preserve the existing housing supply, maintain property values, and promote the welfare, safety, and health of the public.
Your Tenants Have Rights - While you own the property, your tenants are protected under Iowa law. You must legally provide proper notice regarding a change in ownership and your desire for them to vacate.
Selling the Property Can Impact Your Taxes - If you plan to reinvest in another property, you may consider deferring the capital gains tax with a 1031 exchange. It’s also important to keep in mind that you will be taxed upon sale if you claim depreciation on the property.
When it’s time to sell rental property Dubuque residents must follow the proper legal process to protect themselves and their tenants. You can either sell the property with the tenants vacated, or as-is for cash, depending on your needs and unique situation. Whichever option you choose, be sure to consider Iowa laws, your tenants' rights, and the tax implications. To sell your property quickly, turn to Dubuque Home Buyers. A simple 3-step process is all it takes to get fair market value for your house. Close in as little as 10 days for an all-cash payment. Contact Dubuque Home Buyers at 563.227.8157 to learn more today!