When you own a rental property, there may come a time when you decide to sell your home. While the process may seem daunting, following some simple tips can make the selling process go as smoothly as possible.
Here are a few things to keep in mind:
Work With an Experienced Real Estate Agent
Selling a rental property can be complicated, and it’s always best to work with an experienced professional who knows the local real estate market. A good real estate agent can help you navigate the process to figure out things like settling on a good asking price, calculating closing costs, finding potential buyers, and ultimately determining your home’s sale price.
Finding a real estate agent to sell your home seems easy enough, but you need the right kind of realtor who understands the investment property real estate market and how to sell a rental property. They need to understand that this is not your primary residence so they can get your property sold quickly and smoothly.
Find an Investment Property Realtor to Handle the Selling Process
You are a professional investor. Owning an investment property and managing rental income is your business. When you’re receiving rental income from a property, and not selling your primary residence, it’s a whole new ballgame. You need someone who understands that.
You need to hire a listing agent who is well-versed in rental property sales and has been around the block more than a few times. One smart way to decide on how you’ll hire to sell your home is to ask the real estate agent about their recently sold properties. Find out how many of their sales are comparable homes to yours, and ask how many went above the asking price.
Real estate agents who sell rental property exclusively will know how to communicate with the different parties, and they’ll understand your priorities. They’ll also keep things moving and operate in a timely manner because they understand the investment mindset of a property manager or landlord.
Have Your Home Ready to Sell
In order to get top dollar for your home, you’ll need to have it in good condition. You want to make it look its best. This process includes:
- Making necessary repairs
- Doing a bit of staging
- Cleaning up and de-cluttering
- Repainting, if necessary
- Fixing any code violations
A Lawn Care Service Can Help
If you don’t have time to properly maintain your lawn or garden, consider hiring a professional lawn care service. They can get rid of weeds and cut grass quickly and efficiently. By allowing them to take care of these tasks for you, it will free up more of your time.
Understand Your Tenant’s Current Lease Provisions
If you are renting your property, understand what the lease provisions are. Ask yourself the following questions:
- How much longer is the lease contract?
- Are your tenants willing to move out early? Depending on their response, you may need to renegotiate their monthly rent rate or find new homes for them once the sale is complete.
- Can you find a buyer willing to take over the lease?
If your renters agree to move out early, you’ll have to coordinate for showings, make sure the house stays clean, and work diligently to keep all parties informed. If they don’t agree to move out early, you’ll have to find a different solution. Make sure you get sound legal advice on this front because it’s a very delicate situation. You must be respectful to your tenants, and transparent with potential new owners.
Hire an Eviction Company
If you have a difficult tenant who is causing you to want to sell, and you want them off your property immediately, contact an eviction services company. They will guide you through the entire eviction process so you can get it done quickly and move on with your life.
Rocket Eviction in Las Vegas handles the entire eviction process from start to finish. They’ll do everything from paperwork and serving eviction notices to legal advice and court filings. You don’t want to forego using a professional eviction service if you’re trying to evict a tenant before selling.
Be Aware of Capital Gains Taxes
Remember that selling your rental property may result in having to pay capital gains taxes since it’s not your primary residence. There are two main strategies for dealing with this:
- You can sell the home for more than its actual value if you want to offset the capital gains taxes. If you don’t plan on buying another, bigger rental property after the sale of your current one, you might go this route.
- Do a 1031 exchange to a different property to delay the capital gains tax until later on. If you’re unfamiliar with a 1031 exchange, it’s an Internal Revenue Service code that allows investors to trade up one investment property or multiple investment properties for bigger ones to defer capital gains taxes. It’s more complicated than what we’ve explained here, but that’s the gist of it.
If you’re interested in delaying hefty capital gains taxes on your rental property, be sure to consult a tax professional before making any moves. They are educated to give real estate investors all the information they need to pave the way for a smooth rental property sale.
Steps to Selling Rental Property
All these tips can make the process of selling seem daunting for rental property owners. In reality, though, the actual selling process can be broken down into the following simple steps:
1. Preparing for Sale
2. Dealing with Existing Tenants
3. Finding a Buyer
4. Negotiating a Deal and Closing the Sale
Looking to Sell Your Rental Property?
Selling a rental property can be complicated, but with the help of a professional, it can be a much smoother experience.
Follow the tips from this article, and you’ll be well on your way to bigger and better deals. Remember to work with a realtor who is versed in investment property sales, consult a tax professional, work with your current renters, and keep your house looking sharp for potential buyers.
If the thing that’s holding you back from selling is a difficult tenant, contact Rocket Eviction today! The experts at Rocket Evictions can help you prepare for sale, find a buyer, and guide you through the entire eviction process.
Thanks for reading!
