- Published 02-02-18
- by admin
So You Want to Sell Your Rental Property
Rental properties always sound like great ideas before you start, doesn’t it? You get the extra income from rent without having to put in extra hours at the office. But it’s rarely that straightforward, right
Problem tenants, missed payments, property repairs, time you just don’t have — it can all add up, and fast. So now you want to sell your rental property.
Selling a rental property is a great way to alleviate those landlord woes, but there are some important things to keep in mind. Don’t give yourself yet another headache — read our helpful tips and get ahead of the game.
Ready to sell your rental property?
- Check Your Lease
If you have tenants in place when you decide to sell, the first thing you’ll want to do is check the current lease. It’s easier to sell a property vacant than with a tenant in place in most cases, but your tenants have rights and you’ll have to honor the terms in your lease.
If the current lease is month-to-month, you could provide the 30 or 60 days’ notice outlined in your terms and opt not to renew. If the lease is long-term but nearing the end of the term, you could do the same. If the lease is long-term and nowhere near ending, what are your options?
You could wait. But who wants to do that? You could try to sell the rental property with the tenant in place. But that could get tricky, and investors might be hard to find. You could pay your tenant to break their lease early. Read your current lease and see which option makes the most sense for you.
- Prepare for Taxes
When you sell a rental property, you have to pay capital gains — the profit made from the sale of a property or investment. So when you sell your rental property, be prepared to pay 15% or more to the IRS.
There are some ways around it, though. If you’re thinking of buying another rental or investment property, you could use the gains from the sale of your first property to the second and defer having to pay taxes. Learn more about the Section 1031 rule and see if it’s an option for you.
Looking for a fast, safe option to sell your property?
- How’re You Going To Sell It?
Agents, closing costs, inspection fees, financing, appraisals — not only do those aspects eat up your time, they take a big chunk out of your profit too. If you have the time and patience to go through the regular buying and selling, you might come out positive on the other end.
But not always. Housing markets shift and change sporadically, making it hard to know when the right time to sell may be. But when you partner with a reliable, honest home buyer like Senna House Buyers, you can rest easy knowing that you’re not only going to get a fair, cash offer, but a same day, fair cash offer that you can take straight to the bank.
And who doesn’t want every deal to be just that easy? So what are you waiting for? Talk to the experts at Senna House and sell your rental property today.