A rental property is an excellent investment as it sets you up for regular income and has excellent growth potential. You can sell it for a profit and reinvest the funds to grow your real estate investment business. But things are not as simple as they sound, specifically when it comes to selling a rental place. You may encounter some unique challenges once you list it for sale. Jumping hoops is easier than you imagine, provided you take the right approach. Here are some quick selling hacks to make the most of your rental property.
Study your local rental market
Getting the pulse of your local rental market enables you to understand the value of your property. You can figure out the right price to sell fast and get a good deal, both of which are crucial. Moreover, a strong rental market serves as a selling point because any investor will be ready to bank on such properties. Check factors like occupancy rates, available land, and upcoming construction projects to get a clear view of future trends in real estate prices in your area.
Choose the right time
Besides having realistic pricing expectations, you must choose the right time to sell to make the most out of the deal, and when you will be able to get good mortgage rates for rental property. Consider postponing the sale if you have owned the place for less than a year. Holding onto it for a longer period enables you to avoid short-term capital gains. Conversely, the money you make from a property owned for less than a year increases your tax burden. Check the tax implications with an expert before going ahead with the deal.
Know how to sell with sitting tenants
Selling a place with sitting tenants is a unique situation, but most rental investors encounter it. You cannot force them to vacate before the end of the lease period, while potential buyers may have some qualms about buying the place. Knowing the basics of selling a property that has tenants puts you in a good place. Remember that you can sell a place with renters in place, provided you take the right approach. You can ask the tenant to vacate on amicable terms and collaborate with experts to market the property.
Maximize the rental potential
The expected capital gain is the primary factor for prospective buyers of rental properties. You can capitalize on it by maximizing the rental potential of the place. Making improvements is the best option as it enables you to charge a higher monthly rent today and sell at a premium in the future. The good thing is that you need not spend a hefty sum on major construction and rehabilitation work. Even minor improvements like renovating the kitchen and swapping the flooring can make a difference.
Win with marketing and staging
Marketing and staging your rental property are essential steps to make the most out of it. Listing on free websites is not enough because you must make your place stand apart with professional photos and descriptions. Ideally, you should let an expert handle the job. Also, consider going the extra mile with property staging to make the deal more attractive to buyers. Staged properties tend to sell quickly and at premium prices.
Selling a rental property need not be a daunting task, provided you do these things right. The best part about these steps is that you can rely on them to maximize the selling price.