OFTEN TIMES, REAL estate agents and owners are unaware of what it takes for landlords to become sellers. There are a few important items that both agents and owners need to consider to make this a smooth and easy transition:

1. The first issue in working with an investment property is to address the tenant or occupant situation. The tenant's lease agreement outlines the terms and conditions of the tenant's occupancy. It must be considered before any marketing efforts or sales offerings take place. Remember, the tenant's lease agreement will go with the transfer of the property when it is sold, unless the tenant and owner agree to other terms and conditions. Contact the tenant BEFORE you arrange to show the property. Ask about a key safe to show the property, and definitely put this arrangement in writing. (The Greater Las Vegas Association of REALTORS® offers its members a form for this purpose.) If the tenant's lease has expired, and it is determined that it is best for the sales effort to have no tenant living in the home, then it is best to work with a professional management company to provide due process notifications to ensure the tenant vacates the property.


2. If the tenant becomes the buyer, then agency relationships, representation and compensation must be considered. It is possible that the tenant may be obligated to either the property management company, or to another agent, through a separate written agreement. The move-in evaluation form also becomes an important issue when considering the tenant as the buyer, along with the condition in which they both found and left the property.


3. Should an investor purchase the property with the tenant and the lease agreement intact, sellers must address issues related to security deposits and property management. Should the existing management company no longer be involved, the security deposit has to either be transferred to a licensed and permitted property manager (providing the same level of care), OR the tenant should allow (in writing) the management company to transfer the deposit to the new owner. Be careful about transferring the tenant's deposit without their permission, as it is not the property of either party at that point. Some agents allow this practice through the escrow process. This is not appropriate, unless the tenant allows their deposit to be automatically transferred.


4. Finally, make sure the professional management contract is considered before the seller either breaches the agreement or has to incur unknown expenses in ending this contract.