How do I sell a rental property in Colorado Springs, with or without tenants?

You can sell a rental with tenants in it, but I usually recommend waiting until they move out. Tenants are living in the home and aren't trying to present it for sale, so showings, condition, and photos are harder to control, and the buyer generally takes the home subject to the lease. A vacant home can be prepared, photographed, and shown on your schedule. Plan the timing around the lease and Colorado's notice rules, then prepare the home after move-out. If you live elsewhere, the sale and closing can be handled remotely.

Selling with tenants in place

It can be done, and sometimes it's the right fit, such as selling to an investor who wants a home that's already rented. But it comes with real trade-offs.

• Different objectives. Your tenants are living there. They aren't trying to keep the home show-ready, and they may not want strangers walking through.
• Showings depend on the lease. Your access for showings is governed by the lease and by working with the tenant. Short notice and limited showing windows can mean fewer buyers see it.
• Condition and photos. Furniture, belongings, and wear are harder to work around, and repairs are harder to schedule.
• The lease generally goes with the home. A buyer typically takes the property subject to the existing lease, which narrows the pool to investors or buyers willing to wait until it ends.

Sometimes you get lucky with great tenants who are willing to help. But it's a risk, which is why I usually recommend waiting to sell until after they move out.

If you do sell with tenants in place, talk with them early, put showing arrangements in writing, and have the lease, rent records, and deposit records ready for the buyer.

Selling after the tenants move out

This is usually the smoother path. Once the home is vacant, it can be cleaned, repaired, painted, staged if it helps, and photographed, and showings happen on your schedule. Our normal process applies: price it well, prepare it, and present it.

The trade-off is a stretch without rent while the home is prepared and on the market. Plan for those carrying costs, and schedule the turnover work before the move-out date so the home isn't sitting empty longer than it needs to.

Timing the move-out with the sale

• Check the lease end date and any renewal terms before you set a listing date.
• Know Colorado's notice rules. Colorado's 2024 for-cause eviction law allows a landlord to end a tenancy to sell the home, but it requires advance written notice, generally 90 days, with other conditions. Talk with a landlord-tenant attorney or your property manager before giving notice or renewing a lease.
• Plan the turnover. Line up cleaners, painters, and repairs for the days after move-out. Whether to sell as-is or make repairs helps decide what's worth doing.
• If you're doing a 1031 exchange, start looking for the replacement before you list. How a 1031 exchange works explains the deadlines.

When to sell a Colorado Springs rental covers the bigger decision of whether to sell at all.

Selling a Colorado Springs rental from out of state

Many rental owners no longer live here. That's a situation we handle often, because our military and senior clients are frequently selling from somewhere else. When the home is vacant, my team provides concierge-level support: walking the property, coordinating the preparation with the professionals you approve, keeping you updated, and supporting a remote closing.

A few things to plan for when you sell from a distance:

• Protect the empty home. Many insurance policies limit coverage once a home has been vacant for a set period, so call your insurance company. Through a Colorado Springs winter, keep the heat on so pipes don't freeze.
• Remote closing. Colorado allows remote notarization by a Colorado notary on an approved platform. Whether it works for your closing depends on the title company, so ask early. Before you sign anything or send money, call the title company at a number you already have.
• Colorado withholding for nonresidents. If you don't live in Colorado, the title company generally withholds the lesser of 2% of the sale price or your net proceeds on sales over $100,000. It's credited toward your Colorado income tax when you file a Colorado return.

How to decide

• If the lease ends soon, waiting until the tenants move out usually gives you more control over condition, showings, and price.
• If the tenants are cooperative and the buyer is likely an investor, selling with them in place can work. Get showing arrangements in writing.
• If you need to end the lease to sell, talk with a landlord-tenant professional about Colorado's notice requirements first.
• If you live out of state, plan for vacancy insurance, winter care, and a remote closing.

What could change the answer

• How soon the lease ends, and whether the tenants are cooperative.
• Whether your likely buyer is an investor who wants a rented home or a buyer who plans to live in it.
• The home's condition and how much preparation it needs after move-out.
• Colorado's notice rules and your lease terms.
• Whether you're doing a 1031 exchange, which adds deadlines to the timeline.

When to talk with a professional

Talk with a landlord-tenant attorney or your property manager before giving notice or renewing a lease. Talk with a CPA about the taxes on the sale, including depreciation and, if you live outside Colorado, the state withholding. Call your insurance company before the home sits vacant. And bring in a local real estate professional early to plan the move-out, the preparation, and the listing date together.

Sources

• Colorado General Assembly, HB24-1098, Cause Required for Eviction of Residential Tenant: https://leg.colorado.gov/bills/hb24-1098
• Colorado Department of Revenue, Form DR 1083 (Information with Respect to a Conveyance of a Colorado Real Property Interest): https://tax.colorado.gov/DR1083
• Colorado Revised Statutes § 39-22-604.5 (withholding on nonresident real property sales): https://colorado.public.law/statutes/crs_39-22-604.5
• Colorado Secretary of State, Remote Notarization: https://www.coloradosos.gov/notary/pages/remote/common/intro.xhtml