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How to Sell a Rental Property

In today’s wild real estate market, properties are changing hands fast, and property values are still climbing almost everywhere nationwide.

If you’re a real estate investor looking to offload one of your rental properties in this seller’s market, we will give you some guidance on how to sell it in a smart, respectful way.

Reasons for Selling

There are several reasons it might be time to sell your rental property:

  • You’re ready to trade up for a bigger property with more units.
  • The property taxes have gotten too high and are cutting into your cash flow.
  • You don’t like being a landlord anymore.
  • You’re moving away and want to offload the property before you go.
  • Rental income from your rental property isn’t enough and you can’t raise it any higher right now.

The list goes on and on. Whatever your reason, let’s discuss a few of the things rental property owners should keep in mind when going about selling rental property. These tips will help you avoid stress and sell your property quickly.

Capital Gains Tax Can Cut Into Your Rental Property Income. Talk to a Tax Professional Before Selling to Learn Your Options and Get Your Property Sold Right.Property Investors Follow Tax Rules to Make the Most of Their Taxable Income and Delay Capital Gains Tax on Their Rental Property.Selling a Rental Property Occupied by Fixed Term Lease Tenants can be Tricky.Hire a Tax Professional to Help Delay Capital Gains Tax When You Sell a Rental Property.Real Estate Investors Use 1031 Exchanges to Defer Capital Gains Taxes on Their Real Estate Assets. How to Sell a Rental Property In today's wild real estate market, properties are changing hands fast, and property values are still climbing almost everywhere nationwide. If you're a real estate investor looking to offload one of your rental properties in this seller's market, we will give you some guidance on how to sell it in a smart, respectful way. Capital Gains Tax Can Cut Into Your Rental Property Income. Talk to a Tax Professional Before Selling to Learn Your Options and Get Your Property Sold Right. Reasons for Selling There are several reasons it might be time to sell your rental property: You're ready to trade up for a bigger property with more units. The property taxes have gotten too high and are cutting into your cash flow. You don't like being a landlord anymore. You're moving away and want to offload the property before you go. Rental income from your rental property isn't enough and you can't raise it any higher right now. The list goes on and on. Whatever your reason, let's discuss a few of the things rental property owners should keep in mind when going about selling rental property. These tips will help you avoid stress and sell your property quickly. Property Investors Follow Tax Rules to Make the Most of Their Taxable Income and Delay Capital Gains Tax on Their Rental Property. What Should I Do About My Current Renters? If you've got tenants living in your rental, there are a few things to consider. How Much Longer Is There Lease Term Agreement? First, you will need to find out how much time is left on their lease agreement. Depending on what state you're located in, there are different rules to follow if the current tenant has a lease agreement versus if they are month-to-month. Generally, you'll have to sell the property to a buyer who is willing to continue the existing lease agreement. That doesn't have to be the case, though. Are Your Renters Willing to Move Out Early? If you communicate openly, honestly, and respectfully, hopefully, your renters may agree to move out before the finalization of the sale. Communication is key here. If you plan on asking them to leave before their lease agreement is up, you must empathize with your renters, and be as helpful to them as possible. Give them plenty of notice that you're planning to sell, and make it clear you understand the inconvenience. It even helps to provide incentives for them to move out, like a discount on their rent or offering to pay for moving services. Check the Laws in Your State Make sure you understand you understand the rules when you go to approach your renters about selling the property. Your renters likely have protections against moving that you may be forced to abide by, greatly affecting your timeline for selling. Good communication can often avoid struggling over when you can sell, but it's always good to know where you and your tenants stand in the eyes of the law. It's not what you do know, it's often what you don't know that bites you in the end. So, before you do anything, check the laws and regulations in your state. If you're an investor, it's best to play by the rules. Housing laws can be very strict, and you don't want to be on the other side of the law. When Tenants Become a Problem If you kindly ask your renters to leave, and they begin to pose a major problem for you, you may need to hire an eviction company. Hopefully, it never comes to that, but sometimes it's unavoidable. If you're in Las Vegas and need assistance removing a difficult renter from your property, contact Rocket Eviction today. They are the Las Vegas evictions experts and can help you confidently deal with uncomfortable eviction situations. Selling a Rental Property Occupied by Fixed Term Lease Tenants can be Tricky. How to Show Your Occupied Rental Property Even if your renters agree to move before the time of sale, they'll likely still reside in the home when you start showing the property to potential buyers. This puts you in the middle of trying to show buyers the home and also appease the renters who will have to vacate the property every time there's a prospective buyer. Here are a few ways to successfully deal with both parties the showing process: Offer to buy your tenants dinner, sponsor a date night or family outing, or buy them event or movie tickets so they feel less inconvenienced by having to leave the house. If you hold an open house, advertise aggressively and host the open house on Saturday and Sunday in the same weekend to get as much traffic through the house as possible. Pay for your tenants to stay in a hotel for the weekend if you want them to vacate for your open house. The house will need to be clean and decluttered for showings. Offer to pay for a cleaning service and temporary storage unit for your tenants' excess belongings. Be gentle about the storage unit though. You don't want to imply to your tenants that you think they are untidy or are hoarders. Hire a Tax Professional to Help Delay Capital Gains Tax When You Sell a Rental Property. Find a Good Real Estate Agent Another key to the successful sale of your rental property is to hire a good realtor. Not all real estate agents are alike, and they can make or break your transaction. If you want to sell rental property at or above fair market value, you need to find a realtor who meets a few key criteria: They must have experience working with investors and investment property. There are a lot of moving parts in selling an investment property with renters. Your realtor must be a fast, open, and respectful communicator. They should have a wide network of home services at their disposal. If they seem like they're always scrambling, they might not have a good system. As an investor, you want your sale to be as quick and painless as possible. Having a quality realtor who understands investment sales will get you further faster. You want them to be a good deal facilitator, not another person to worry about. Real Estate Investors Use 1031 Exchanges to Defer Capital Gains Taxes on Their Real Estate Assets. Avoid Capital Gains Tax If you're worried about incurring capital gains taxes upon the sale of your rental property, consider doing a 1031 exchange. Under the United States Internal Revenue Code 1031, investors can basically "trade-up" their lower value investment properties for bigger and better properties while delaying capital gains taxes. Many real estate investors benefit from doing 1031 exchanges. They are a strategic way to keep rental property cash flow high and capital gains taxes at bay. It only works if you're exchanging rental properties for other rental properties, though. You cannot sell your rental property and purchase your primary residence using a 1031 exchange. So, if you're looking to sell a rental property and you find a replacement property that can provide potentially higher rental income, you can try to avoid hefty capital gains taxes by doing a 1031 exchange. To learn more, and to execute the sale of an investment property by employing this method, make sure you consult a tax professional first. They will be able to guide you properly. Final Thoughts If it's time to sell your investment property, make sure you prepare yourself to work with your current renters before you sign any contracts. Open communication with all parties is key. Make sure you approach your renters in plenty of time and show empathy when asking them to cut their lease short. Offer incentives for moving assistance and during showings. If you kindly and respectfully ask renters to leave, and you have the laws on your side but they still won't go, employ the services of a reputable eviction company like Rocket Eviction instead of handling it yourself. No one wants it to come to that, but if it does, you want someone knowledgeable and experienced on your side. Find a good realtor who has worked with investors in the past and has a wide network of home services they can rely on. 🤗 Connected | 1 person currently editing this document Synced 3 minutes ago sell a rental property GUIDELINES OUTLINE BRIEF 91 WORDS 1,376 HEADINGS 15 Content Score 91/100 Details WORDS 1,376 2,075–2,386 HEADINGS 15 18–34 PARAGRAPHS 33 AT LEAST 45 IMAGES 5 5–10 ALL 80 HEADINGS 5 NLP 76 Search 11 CLUSTERS sell a rental property 3/3–6 rental property 16/19–36 capital gains tax 4/5–11 capital gains taxes 5/3–6 capital gains 9/11–27 investment property 4/4–16 real estate investors 2/2–4 rental income 2/2–5 real estate assets 1/1–2 rental property owners 1/1–3 primary residence 1/3–8 real estate investor 1/1–4 pay tax 0/1–3 tax professional 3/2–3 property sold 1/1–2 selling a rental property 1/3–5 selling rental property 1/1–2 sell rental property 1/1–2 defer capital gains taxes 1/1–2 hefty capital gains taxes 1/1–2 real estate market 1/1–3 rental properties 3/2–4 real estate 7/11–18 fixed term lease 1/1–2 fair market value 1/1–3 replacement property 1/1–5 stock market 0/1–2 real estate agent 1/1–3 property taxes 1/2–5 purchase price 0/2–4 property investors 1/1–3 most real estate investors 0/1–2 rental home 0/2–5 tax bill 0/1–3 tax rules 1/1–2 occupied property 0/1–2 taxable income 1/2–6 lease agreement 4/1–3 investment properties 1/1–2 sell your rental property 2/1–3 sell property 0/1 depreciation deduction 0/1–2 tax exposure 0/1–2 tenant's lease 0/1 month to month lease 0/1 inherited property 0/1–2 tax hit 0/1–2 tax code 0/1–4 new owner 0/2–4 legal advice 0/1–2 current lease 0/1–2 financial sense 0/1–3 fair market 1/1–3 personal residence 0/1–2 lease period 0/1–2 lease expire 0/1–2 early termination clause 0/1–3 sales price 0/1–2 capital gain 0/2–4 new property 0/1–2 financial planning 0/1–2 sale proceeds 0/1–2 tax loss harvesting 0/1–3 tax bracket 0/1–2 original purchase price 0/1–2 potential buyers 1/1 sell a rental 3/3–6 top tax bracket 0/1–2 tax rate 0/2–4 property 32/45–78 security deposit 0/1–3 good tenant 0/2–4 like kind property 0/1–3 eviction process 0/1 current tenant 1/1–2 capital losses 0/1–2 tax return 0/1–3 potential buyer 0/1–2 one property 0/1–2 tax year 0/1–2 How to Sell a Rental Property In today's wild real estate market, properties are changing hands fast, and property values are still climbing almost everywhere nationwide. If you're a real estate investor looking to offload one of your rental properties in this seller's market, we will give you some guidance on how to sell it in a smart, respectful way. Capital Gains Tax Can Cut Into Your Rental Property Income. Talk to a Tax Professional Before Selling to Learn Your Options and Get Your Property Sold Right. Reasons for Selling There are several reasons it might be time to sell your rental property: You're ready to trade up for a bigger property with more units. The property taxes have gotten too high and are cutting into your cash flow. You don't like being a landlord anymore. You're moving away and want to offload the property before you go. Rental income from your rental property isn't enough and you can't raise it any higher right now. The list goes on and on. Whatever your reason, let's discuss a few of the things rental property owners should keep in mind when going about selling rental property. These tips will help you avoid stress and . Property Investors Follow Tax Rules to Make the Most of Their Taxable Income and Delay Capital Gains Tax on Their Rental Property. What Should I Do About My Current Renters? If you've got tenants living in your rental, there are a few things to consider. How Much Longer Is There Lease Term Agreement? First, you will need to find out how much time is left on their lease agreement. Depending on what state you're located in, there are different rules to follow if the current tenant has a lease agreement versus if they are month-to-month. Generally, you'll have to sell the property to a buyer who is willing to continue the existing lease agreement. That doesn't have to be the case, though. Are Your Renters Willing to Move Out Early? If you communicate openly, honestly, and respectfully, hopefully, your renters may agree to move out before the finalization of the sale. Communication is key here. If you plan on asking them to leave before their lease agreement is up, you must empathize with your renters, and be as helpful to them as possible. Give them plenty of notice that you're planning to sell, and make it clear you understand the inconvenience. It even helps to provide incentives for them to move out, like a discount on their rent or offering to pay for moving services. Check the Laws in Your State Make sure you understand you understand the rules when you go to approach your renters about selling the property. Your renters likely have protections against moving that you may be forced to abide by, greatly affecting your timeline for selling. Good communication can often avoid struggling over when you can sell, but it's always good to know where you and your tenants stand in the eyes of the law. It's not what you do know, it's often what you don't know that bites you in the end. So, before you do anything, check the laws and regulations in your state. If you're an investor, it's best to play by the rules. Housing laws can be very strict, and you don't want to be on the other side of the law. When Tenants Become a Problem If you kindly ask your renters to leave, and they begin to pose a major problem for you, you may need to . Hopefully, it never comes to that, but sometimes it's unavoidable. If you're in Las Vegas and need assistance removing a difficult renter from your property, . They are the Las Vegas evictions experts and can help you confidently deal with uncomfortable eviction situations. Selling a Rental Property Occupied by Fixed Term Lease Tenants can be Tricky. How to Show Your Occupied Rental Property Even if your renters agree to move before the time of sale, they'll likely still reside in the home when you start showing the property to potential buyers. This puts you in the middle of trying to show buyers the home and also appease the renters who will have to vacate the property every time there's a prospective buyer. Here are a few ways to successfully deal with both parties the showing process: Offer to buy your tenants dinner, sponsor a date night or family outing, or buy them event or movie tickets so they feel less inconvenienced by having to leave the house. If you hold an open house, advertise aggressively and host the open house on Saturday and Sunday in the same weekend to get as much traffic through the house as possible. Pay for your tenants to stay in a hotel for the weekend if you want them to vacate for your open house. The house will need to be clean and decluttered for showings. Offer to pay for a cleaning service and temporary storage unit for your tenants' excess belongings. Be gentle about the storage unit though. You don't want to imply to your tenants that you think they are untidy or are hoarders. Hire a Tax Professional to Help Delay Capital Gains Tax When You Sell a Rental Property. Find a Good Real Estate Agent Another key to the successful sale of your rental property is to hire a good realtor. Not all real estate agents are alike, and they can make or break your transaction. If you want to sell rental property at or above fair market value, you need to find a realtor who meets a few key criteria: They must have experience working with investors and investment property. There are a lot of moving parts in selling an investment property with renters. Your realtor must be a fast, open, and respectful communicator. They should have a wide network of home services at their disposal. If they seem like they're always scrambling, they might not have a good system. As an investor, you want your sale to be as quick and painless as possible. Having a quality realtor who understands investment sales will get you further faster. You want them to be a good deal facilitator, not another person to worry about. Real Estate Investors Use 1031 Exchanges to Defer Capital Gains Taxes on Their Real Estate Assets. Avoid Capital Gains Tax If you're worried about incurring capital gains taxes upon the sale of your rental property, consider doing a 1031 exchange. Under the United States Internal Revenue Code 1031, investors can basically "trade-up" their lower value investment properties for bigger and better properties while delaying capital gains taxes. Many real estate investors benefit from doing 1031 exchanges. They are a strategic way to keep rental property cash flow high and capital gains taxes at bay. It only works if you're exchanging rental properties for other rental properties, though. You cannot sell your rental property and purchase your primary residence using a 1031 exchange. So, if you're looking to sell a rental property and you find a replacement property that can provide potentially higher rental income, you can try to avoid hefty capital gains taxes by doing a 1031 exchange. To learn more, and to execute the sale of an investment property by employing this method, make sure you consult a tax professional first. They will be able to guide you properly. Final Thoughts If it's time to sell your investment property, make sure you prepare yourself to work with your current renters before you sign any contracts. Open communication with all parties is key. Make sure you approach your renters in plenty of time and show empathy when asking them to cut their lease short. Offer incentives for moving assistance and during showings. If you kindly and respectfully ask renters to leave, and you have the laws on your side but they still won't go, employ the services of a like Rocket Eviction instead of handling it yourself. No one wants it to come to that, but if it does, you want someone knowledgeable and experienced on your side. Find a good realtor who has worked with investors in the past and has a wide network of home services they can rely on.

What Should I Do About My Current Renters?

If you’ve got tenants living in your rental, there are a few things to consider.

How Much Longer Is There Lease Term Agreement?

First, you will need to find out how much time is left on their lease agreement.

Depending on what state you’re located in, there are different rules to follow if the current tenant has a lease agreement versus if they are month-to-month.

Generally, you’ll have to sell the property to a buyer who is willing to continue the existing lease agreement. That doesn’t have to be the case, though.

Are Your Renters Willing to Move Out Early?

If you communicate openly, honestly, and respectfully, hopefully, your renters may agree to move out before the finalization of the sale.

Communication is key here. If you plan on asking them to leave before their lease agreement is up, you must empathize with your renters, and be as helpful to them as possible.

Give them plenty of notice that you’re planning to sell, and make it clear you understand the inconvenience.

It even helps to provide incentives for them to move out, like a discount on their rent or offering to pay for moving services.

Check the Laws in Your State

Make sure you understand you understand the rules when you go to approach your renters about selling the property. Your renters likely have protections against moving that you may be forced to abide by, greatly affecting your timeline for selling.

Good communication can often avoid struggling over when you can sell, but it’s always good to know where you and your tenants stand in the eyes of the law. It’s not what you do know, it’s often what you don’t know that bites you in the end.

So, before you do anything, check the laws and regulations in your state. If you’re an investor, it’s best to play by the rules. Housing laws can be very strict, and you don’t want to be on the other side of the law.

When Tenants Become a Problem

If you kindly ask your renters to leave, and they begin to pose a major problem for you, you may need to hire an eviction company.

Hopefully, it never comes to that, but sometimes it’s unavoidable. If you’re in Las Vegas and need assistance removing a difficult renter from your property, contact Rocket Eviction today. They are the Las Vegas evictions experts and can help you confidently deal with uncomfortable eviction situations.

Capital Gains Tax Can Cut Into Your Rental Property Income. Talk to a Tax Professional Before Selling to Learn Your Options and Get Your Property Sold Right.Property Investors Follow Tax Rules to Make the Most of Their Taxable Income and Delay Capital Gains Tax on Their Rental Property.Selling a Rental Property Occupied by Fixed Term Lease Tenants can be Tricky.Hire a Tax Professional to Help Delay Capital Gains Tax When You Sell a Rental Property.Real Estate Investors Use 1031 Exchanges to Defer Capital Gains Taxes on Their Real Estate Assets. How to Sell a Rental Property In today's wild real estate market, properties are changing hands fast, and property values are still climbing almost everywhere nationwide. If you're a real estate investor looking to offload one of your rental properties in this seller's market, we will give you some guidance on how to sell it in a smart, respectful way. Capital Gains Tax Can Cut Into Your Rental Property Income. Talk to a Tax Professional Before Selling to Learn Your Options and Get Your Property Sold Right. Reasons for Selling There are several reasons it might be time to sell your rental property: You're ready to trade up for a bigger property with more units. The property taxes have gotten too high and are cutting into your cash flow. You don't like being a landlord anymore. You're moving away and want to offload the property before you go. Rental income from your rental property isn't enough and you can't raise it any higher right now. The list goes on and on. Whatever your reason, let's discuss a few of the things rental property owners should keep in mind when going about selling rental property. These tips will help you avoid stress and sell your property quickly. Property Investors Follow Tax Rules to Make the Most of Their Taxable Income and Delay Capital Gains Tax on Their Rental Property. What Should I Do About My Current Renters? If you've got tenants living in your rental, there are a few things to consider. How Much Longer Is There Lease Term Agreement? First, you will need to find out how much time is left on their lease agreement. Depending on what state you're located in, there are different rules to follow if the current tenant has a lease agreement versus if they are month-to-month. Generally, you'll have to sell the property to a buyer who is willing to continue the existing lease agreement. That doesn't have to be the case, though. Are Your Renters Willing to Move Out Early? If you communicate openly, honestly, and respectfully, hopefully, your renters may agree to move out before the finalization of the sale. Communication is key here. If you plan on asking them to leave before their lease agreement is up, you must empathize with your renters, and be as helpful to them as possible. Give them plenty of notice that you're planning to sell, and make it clear you understand the inconvenience. It even helps to provide incentives for them to move out, like a discount on their rent or offering to pay for moving services. Check the Laws in Your State Make sure you understand you understand the rules when you go to approach your renters about selling the property. Your renters likely have protections against moving that you may be forced to abide by, greatly affecting your timeline for selling. Good communication can often avoid struggling over when you can sell, but it's always good to know where you and your tenants stand in the eyes of the law. It's not what you do know, it's often what you don't know that bites you in the end. So, before you do anything, check the laws and regulations in your state. If you're an investor, it's best to play by the rules. Housing laws can be very strict, and you don't want to be on the other side of the law. When Tenants Become a Problem If you kindly ask your renters to leave, and they begin to pose a major problem for you, you may need to hire an eviction company. Hopefully, it never comes to that, but sometimes it's unavoidable. If you're in Las Vegas and need assistance removing a difficult renter from your property, contact Rocket Eviction today. They are the Las Vegas evictions experts and can help you confidently deal with uncomfortable eviction situations. Selling a Rental Property Occupied by Fixed Term Lease Tenants can be Tricky. How to Show Your Occupied Rental Property Even if your renters agree to move before the time of sale, they'll likely still reside in the home when you start showing the property to potential buyers. This puts you in the middle of trying to show buyers the home and also appease the renters who will have to vacate the property every time there's a prospective buyer. Here are a few ways to successfully deal with both parties the showing process: Offer to buy your tenants dinner, sponsor a date night or family outing, or buy them event or movie tickets so they feel less inconvenienced by having to leave the house. If you hold an open house, advertise aggressively and host the open house on Saturday and Sunday in the same weekend to get as much traffic through the house as possible. Pay for your tenants to stay in a hotel for the weekend if you want them to vacate for your open house. The house will need to be clean and decluttered for showings. Offer to pay for a cleaning service and temporary storage unit for your tenants' excess belongings. Be gentle about the storage unit though. You don't want to imply to your tenants that you think they are untidy or are hoarders. Hire a Tax Professional to Help Delay Capital Gains Tax When You Sell a Rental Property. Find a Good Real Estate Agent Another key to the successful sale of your rental property is to hire a good realtor. Not all real estate agents are alike, and they can make or break your transaction. If you want to sell rental property at or above fair market value, you need to find a realtor who meets a few key criteria: They must have experience working with investors and investment property. There are a lot of moving parts in selling an investment property with renters. Your realtor must be a fast, open, and respectful communicator. They should have a wide network of home services at their disposal. If they seem like they're always scrambling, they might not have a good system. As an investor, you want your sale to be as quick and painless as possible. Having a quality realtor who understands investment sales will get you further faster. You want them to be a good deal facilitator, not another person to worry about. Real Estate Investors Use 1031 Exchanges to Defer Capital Gains Taxes on Their Real Estate Assets. Avoid Capital Gains Tax If you're worried about incurring capital gains taxes upon the sale of your rental property, consider doing a 1031 exchange. Under the United States Internal Revenue Code 1031, investors can basically "trade-up" their lower value investment properties for bigger and better properties while delaying capital gains taxes. Many real estate investors benefit from doing 1031 exchanges. They are a strategic way to keep rental property cash flow high and capital gains taxes at bay. It only works if you're exchanging rental properties for other rental properties, though. You cannot sell your rental property and purchase your primary residence using a 1031 exchange. So, if you're looking to sell a rental property and you find a replacement property that can provide potentially higher rental income, you can try to avoid hefty capital gains taxes by doing a 1031 exchange. To learn more, and to execute the sale of an investment property by employing this method, make sure you consult a tax professional first. They will be able to guide you properly. Final Thoughts If it's time to sell your investment property, make sure you prepare yourself to work with your current renters before you sign any contracts. Open communication with all parties is key. Make sure you approach your renters in plenty of time and show empathy when asking them to cut their lease short. Offer incentives for moving assistance and during showings. If you kindly and respectfully ask renters to leave, and you have the laws on your side but they still won't go, employ the services of a reputable eviction company like Rocket Eviction instead of handling it yourself. No one wants it to come to that, but if it does, you want someone knowledgeable and experienced on your side. Find a good realtor who has worked with investors in the past and has a wide network of home services they can rely on. 🤗 Connected | 1 person currently editing this document Synced 3 minutes ago sell a rental property GUIDELINES OUTLINE BRIEF 91 WORDS 1,376 HEADINGS 15 Content Score 91/100 Details WORDS 1,376 2,075–2,386 HEADINGS 15 18–34 PARAGRAPHS 33 AT LEAST 45 IMAGES 5 5–10 ALL 80 HEADINGS 5 NLP 76 Search 11 CLUSTERS sell a rental property 3/3–6 rental property 16/19–36 capital gains tax 4/5–11 capital gains taxes 5/3–6 capital gains 9/11–27 investment property 4/4–16 real estate investors 2/2–4 rental income 2/2–5 real estate assets 1/1–2 rental property owners 1/1–3 primary residence 1/3–8 real estate investor 1/1–4 pay tax 0/1–3 tax professional 3/2–3 property sold 1/1–2 selling a rental property 1/3–5 selling rental property 1/1–2 sell rental property 1/1–2 defer capital gains taxes 1/1–2 hefty capital gains taxes 1/1–2 real estate market 1/1–3 rental properties 3/2–4 real estate 7/11–18 fixed term lease 1/1–2 fair market value 1/1–3 replacement property 1/1–5 stock market 0/1–2 real estate agent 1/1–3 property taxes 1/2–5 purchase price 0/2–4 property investors 1/1–3 most real estate investors 0/1–2 rental home 0/2–5 tax bill 0/1–3 tax rules 1/1–2 occupied property 0/1–2 taxable income 1/2–6 lease agreement 4/1–3 investment properties 1/1–2 sell your rental property 2/1–3 sell property 0/1 depreciation deduction 0/1–2 tax exposure 0/1–2 tenant's lease 0/1 month to month lease 0/1 inherited property 0/1–2 tax hit 0/1–2 tax code 0/1–4 new owner 0/2–4 legal advice 0/1–2 current lease 0/1–2 financial sense 0/1–3 fair market 1/1–3 personal residence 0/1–2 lease period 0/1–2 lease expire 0/1–2 early termination clause 0/1–3 sales price 0/1–2 capital gain 0/2–4 new property 0/1–2 financial planning 0/1–2 sale proceeds 0/1–2 tax loss harvesting 0/1–3 tax bracket 0/1–2 original purchase price 0/1–2 potential buyers 1/1 sell a rental 3/3–6 top tax bracket 0/1–2 tax rate 0/2–4 property 32/45–78 security deposit 0/1–3 good tenant 0/2–4 like kind property 0/1–3 eviction process 0/1 current tenant 1/1–2 capital losses 0/1–2 tax return 0/1–3 potential buyer 0/1–2 one property 0/1–2 tax year 0/1–2 How to Sell a Rental Property In today's wild real estate market, properties are changing hands fast, and property values are still climbing almost everywhere nationwide. If you're a real estate investor looking to offload one of your rental properties in this seller's market, we will give you some guidance on how to sell it in a smart, respectful way. Capital Gains Tax Can Cut Into Your Rental Property Income. Talk to a Tax Professional Before Selling to Learn Your Options and Get Your Property Sold Right. Reasons for Selling There are several reasons it might be time to sell your rental property: You're ready to trade up for a bigger property with more units. The property taxes have gotten too high and are cutting into your cash flow. You don't like being a landlord anymore. You're moving away and want to offload the property before you go. Rental income from your rental property isn't enough and you can't raise it any higher right now. The list goes on and on. Whatever your reason, let's discuss a few of the things rental property owners should keep in mind when going about selling rental property. These tips will help you avoid stress and . Property Investors Follow Tax Rules to Make the Most of Their Taxable Income and Delay Capital Gains Tax on Their Rental Property. What Should I Do About My Current Renters? If you've got tenants living in your rental, there are a few things to consider. How Much Longer Is There Lease Term Agreement? First, you will need to find out how much time is left on their lease agreement. Depending on what state you're located in, there are different rules to follow if the current tenant has a lease agreement versus if they are month-to-month. Generally, you'll have to sell the property to a buyer who is willing to continue the existing lease agreement. That doesn't have to be the case, though. Are Your Renters Willing to Move Out Early? If you communicate openly, honestly, and respectfully, hopefully, your renters may agree to move out before the finalization of the sale. Communication is key here. If you plan on asking them to leave before their lease agreement is up, you must empathize with your renters, and be as helpful to them as possible. Give them plenty of notice that you're planning to sell, and make it clear you understand the inconvenience. It even helps to provide incentives for them to move out, like a discount on their rent or offering to pay for moving services. Check the Laws in Your State Make sure you understand you understand the rules when you go to approach your renters about selling the property. Your renters likely have protections against moving that you may be forced to abide by, greatly affecting your timeline for selling. Good communication can often avoid struggling over when you can sell, but it's always good to know where you and your tenants stand in the eyes of the law. It's not what you do know, it's often what you don't know that bites you in the end. So, before you do anything, check the laws and regulations in your state. If you're an investor, it's best to play by the rules. Housing laws can be very strict, and you don't want to be on the other side of the law. When Tenants Become a Problem If you kindly ask your renters to leave, and they begin to pose a major problem for you, you may need to . Hopefully, it never comes to that, but sometimes it's unavoidable. If you're in Las Vegas and need assistance removing a difficult renter from your property, . They are the Las Vegas evictions experts and can help you confidently deal with uncomfortable eviction situations. Selling a Rental Property Occupied by Fixed Term Lease Tenants can be Tricky. How to Show Your Occupied Rental Property Even if your renters agree to move before the time of sale, they'll likely still reside in the home when you start showing the property to potential buyers. This puts you in the middle of trying to show buyers the home and also appease the renters who will have to vacate the property every time there's a prospective buyer. Here are a few ways to successfully deal with both parties the showing process: Offer to buy your tenants dinner, sponsor a date night or family outing, or buy them event or movie tickets so they feel less inconvenienced by having to leave the house. If you hold an open house, advertise aggressively and host the open house on Saturday and Sunday in the same weekend to get as much traffic through the house as possible. Pay for your tenants to stay in a hotel for the weekend if you want them to vacate for your open house. The house will need to be clean and decluttered for showings. Offer to pay for a cleaning service and temporary storage unit for your tenants' excess belongings. Be gentle about the storage unit though. You don't want to imply to your tenants that you think they are untidy or are hoarders. Hire a Tax Professional to Help Delay Capital Gains Tax When You Sell a Rental Property. Find a Good Real Estate Agent Another key to the successful sale of your rental property is to hire a good realtor. Not all real estate agents are alike, and they can make or break your transaction. If you want to sell rental property at or above fair market value, you need to find a realtor who meets a few key criteria: They must have experience working with investors and investment property. There are a lot of moving parts in selling an investment property with renters. Your realtor must be a fast, open, and respectful communicator. They should have a wide network of home services at their disposal. If they seem like they're always scrambling, they might not have a good system. As an investor, you want your sale to be as quick and painless as possible. Having a quality realtor who understands investment sales will get you further faster. You want them to be a good deal facilitator, not another person to worry about. Real Estate Investors Use 1031 Exchanges to Defer Capital Gains Taxes on Their Real Estate Assets. Avoid Capital Gains Tax If you're worried about incurring capital gains taxes upon the sale of your rental property, consider doing a 1031 exchange. Under the United States Internal Revenue Code 1031, investors can basically "trade-up" their lower value investment properties for bigger and better properties while delaying capital gains taxes. Many real estate investors benefit from doing 1031 exchanges. They are a strategic way to keep rental property cash flow high and capital gains taxes at bay. It only works if you're exchanging rental properties for other rental properties, though. You cannot sell your rental property and purchase your primary residence using a 1031 exchange. So, if you're looking to sell a rental property and you find a replacement property that can provide potentially higher rental income, you can try to avoid hefty capital gains taxes by doing a 1031 exchange. To learn more, and to execute the sale of an investment property by employing this method, make sure you consult a tax professional first. They will be able to guide you properly. Final Thoughts If it's time to sell your investment property, make sure you prepare yourself to work with your current renters before you sign any contracts. Open communication with all parties is key. Make sure you approach your renters in plenty of time and show empathy when asking them to cut their lease short. Offer incentives for moving assistance and during showings. If you kindly and respectfully ask renters to leave, and you have the laws on your side but they still won't go, employ the services of a like Rocket Eviction instead of handling it yourself. No one wants it to come to that, but if it does, you want someone knowledgeable and experienced on your side. Find a good realtor who has worked with investors in the past and has a wide network of home services they can rely on.

How to Show Your Occupied Rental Property

Even if your renters agree to move before the time of sale, they’ll likely still reside in the home when you start showing the property to potential buyers.

This puts you in the middle of trying to show buyers the home and also appease the renters who will have to vacate the property every time there’s a prospective buyer.

Here are a few ways to successfully deal with both parties the showing process:

  • Offer to buy your tenants dinner, sponsor a date night or family outing, or buy them event or movie tickets so they feel less inconvenienced by having to leave the house.
  • If you hold an open house, advertise aggressively and host the open house on Saturday and Sunday in the same weekend to get as much traffic through the house as possible.
  • Pay for your tenants to stay in a hotel for the weekend if you want them to vacate for your open house.
  • The house will need to be clean and decluttered for showings. Offer to pay for a cleaning service and temporary storage unit for your tenants’ excess belongings. Be gentle about the storage unit though. You don’t want to imply to your tenants that you think they are untidy or are hoarders.
Hire a Tax Professional to Help Delay Capital Gains Tax When You Sell a Rental Property.

Find a Good Real Estate Agent

Another key to the successful sale of your rental property is to hire a good realtor. Not all real estate agents are alike, and they can make or break your transaction.

If you want to sell rental property at or above fair market value, you need to find a realtor who meets a few key criteria:

  • They must have experience working with investors and investment property.
  • There are a lot of moving parts in selling an investment property with renters. Your realtor must be a fast, open, and respectful communicator.
  • They should have a wide network of home services at their disposal. If they seem like they’re always scrambling, they might not have a good system.

As an investor, you want your sale to be as quick and painless as possible. Having a quality realtor who understands investment sales will get you further faster. You want them to be a good deal facilitator, not another person to worry about.

Capital Gains Tax text

Avoid Capital Gains Tax

If you’re worried about incurring capital gains taxes upon the sale of your rental property, consider doing a 1031 exchange.

Under the United States Internal Revenue Code 1031, investors can basically “trade-up” their lower value investment properties for bigger and better properties while delaying capital gains taxes.

Many real estate investors benefit from doing 1031 exchanges. They are a strategic way to keep rental property cash flow high and capital gains taxes at bay. It only works if you’re exchanging rental properties for other rental properties, though. You cannot sell your rental property and purchase your primary residence using a 1031 exchange.

So, if you’re looking to sell a rental property and you find a replacement property that can provide potentially higher rental income, you can try to avoid hefty capital gains taxes by doing a 1031 exchange.

To learn more, and to execute the sale of an investment property by employing this method, make sure you consult a tax professional first. They will be able to guide you properly.

Final Thoughts

If it’s time to sell your investment property, make sure you prepare yourself to work with your current renters before you sign any contracts.

Open communication with all parties is key. Make sure you approach your renters in plenty of time and show empathy when asking them to cut their lease short.

Offer incentives for moving assistance and during showings.

If you kindly and respectfully ask renters to leave, and you have the laws on your side but they still won’t go, employ the services of a reputable eviction company like Rocket Eviction instead of handling it yourself. No one wants it to come to that, but if it does, you want someone knowledgeable and experienced on your side.

Find a good realtor who has worked with investors in the past and has a wide network of home services they can rely on.

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