Posted by Mark W-MD on July 15, 2002 at 21:35:48:
Seller gets guaranteed “no vacancy” and does not deal with the tenant problems. A property mgt firm will claim to handle that but who’s checkbook will they be using when something breaks? The hassle factor goes way down if they L/O and they are not giving up 10% (or more) per month of the monthly rent by paying a property Mgt firm. Generally, someone who sells under a L/O does not have to be super motivated however they do have a reason to sell or move on quickly. A L/O can be executed with relative speed compared to finding a suitable tenant in many instances. If someone is considering renting it out themselves and wants to hold for future appreciation, they probably are not motivated enough - YET.
HTH - Success, Mark Williams