When selling a rental property, what steps must be taken? More than finding a real estate agent and posting an ad. Things like dealing with renters and making repairs before listing your house for sale. This comprehensive guide includes everything you need before listing your house for sale.
Timing Is Key
You thought about whether or not to purchase a rental property, and you should do the same while determining whether to sell it for the highest possible net gain. There are a few situations when you should sell your rental property:
High Equity
When you bought the property, did you do any work on it? Even if you hadn’t, as long as you’ve kept it in good shape and hold on to it for a few years, the home's value undoubtedly has increased – especially in today’s market!
Seller’s Market
When buyers surpass the number of available properties, there’s a good chance your property will sell quickly. But first, consult a real estate agent to see what your local market is doing.
Portfolio Diversification
Why keep your rental property forever if it isn’t performing well? If you let it go, you might get enough money to pay for your next investment.
Tired of Being a Landlord
You may have inherited a house but have absolutely no desire to become a landlord. Instead, you may need to work on the situation or shift your priorities. Whatever the situation may be, this is an excellent selling point.
Property Needs too Many Repairs
When a house requires significant repairs you don't have the money for or don't want to deal with, it's probably time to put it on the market.
Prepping Before Listing
After deciding to put your rental property on the market, there are a few things you need to do to get it ready. First, discuss the repairs, renovations, and other pre-listing tasks you should complete for maximum profit.
Notify Your Tenant
Depending on where you live, you’ll have to give your tenant anywhere from 30 to 120 days written notice that you plan on selling the property. After that, if you’re lucky, you may even be able to sell the property to your tenant or find a buyer interested in buying a property that already has a tenant.
Hire a Real Estate Agent
Finding a trustworthy real estate agent to represent you in the sale of your house should be high on your list of priorities. They will be able to advise you on the state of the market, suggest improvements to make before putting your home on the market, devise a price strategy, and assist you through the entire selling process, from the initial planning stages to the final signing.
Make Improvements
80% of buyers want homes ready to live in right away. Whether your house needs significant repairs or looks a little used, making wise home changes before you put it on the market will help you sell it faster and for much more money.
Smart improvements include:
Fresh paint
Updated front door
Decluttering the home
Energy-efficient upgrades
Improved landscaping
You want to make as much money as possible when you sell your rental property. This is true whether you're doing it to start a new business or to save for retirement.
