Tips on How to Sell Your Rental/Investment Property

Selling a home you live in is one thing, but listing a rental property on the market can be an entirely different undertaking. Since there are different goals associated with this type of property, you’ll have to market your rental home uniquely to connect with the right buyer.

If you’ve never sold a rental home, you may feel overwhelmed. Here are a few key tips for selling your rental property that will help you better understand the process and maximize your success.

Study the Surrounding Market

Real estate environments can vary from city and neighborhood. That’s why studying the property sales market in your area can be such an illuminating experience.

Look online at other rental properties for sale in your area. Read through the listings and note the information and the images they include. This will give you a better understanding of your competition and how you can maximize your own listing.

Ready Your Property for Maximum ROI

When buyers are perusing rental homes, they’re looking for the property that will provide them with the highest return on investment (ROI). That means they want an attractive, fully functional property with high rent potential.

Do what you can to show buyers that optimal ROI is in their future. Spend the necessary time on repairs, interior design features, landscaping updates, aesthetic fixes, and more.

Refresh Your Knowledge of Local Tax Law

Sales of rental properties are taxed at higher rates than residential properties. However, if you are selling your rental property to purchase a different one, you may be able to use Section 1030 of the United States tax code.

Section 1030 allows you to defer your payment of capital gains tax during the sale, which can be a massive financial help.

Keep Long-Term Tenants to Boost Value

During most property sales, the home will be vacated before it changes hands to the new owner. However, rental properties can be different. If you have a long-term tenant with an extensive record of on-time payments and good property treatment, you may not have to end their lease to sell the home.

A great tenant installed at the property can be a massive selling point for rental property buyers. This will make the acquisition process easier for the new owner, as they’ll have the rental income from the tenant in place immediately upon purchase.

Market Your Property Competitively

How can you sell your rental property to the right buyer? Ensure your listing contains detailed information, updated contact info, and plenty of well-shot photos and videos. The quality of your listing is the first step to successfully selling your rental home.

In addition to these helpful tips, the best way to sell your rental home or acquire a new one is to trust the pros. Contact The Selby Team to get started on finding your new home.