Selling rental properties – though definitely achievable – isn’t always the easiest thing in the world. There are various factors that specifically apply to rental properties that can either help or hinder the sale of the property, and ultimately decide how hard it is to get off the market.
The following guide on selling rental property will outline exactly how you can sell your rental property, not only promptly, but for a good price too!
1. Study the Housing Market Around You
Knowing about houses, in general, isn’t enough. You also need to know about your local market in order to understand what makes a house valuable and appealing, and what puts buyers off. Are buyers more bothered about the location than the house itself?
Are they looking for something stylish and homely, or practical and convenient? Are they going to be renting to students, young professionals, families, or OAPs? Understanding what investors are looking for in your area, in particular, can help you focus on and maximize those particular assets, allowing you to put together a much more appealing listing.
2. Price Your Property Properly
Deciding where to price your property is one of the hardest parts of selling a property – especially a rental. Although low prices definitely make things more appealing and ultimately easier to sell, higher prices – though not as enticing – may end up getting you some extra capital that you weren’t expecting.
It’s important to strike the balance between a price that isn’t too low, so you’re not selling yourself short, but also one that isn’t too high, so it puts potential buyers off.
3. Minimise Expenses
Making money on a rental property isn’t just about being able to charge a high rent. It’s also about having low overheads so that the majority of that rent is profit.
Upgrading things like insulation, energy-efficiency and modern appliances will reduce the costs of running the property, and therefore make it a more profitable investment. This will greatly attract buyers.
4. Maximise Rental Income
More than anything else, people looking to buy rental properties are mainly focused on income. Put short, they want to make some money. Making renovations or upgrades to your property won’t only make it more attractive, but will also allow the potential-future-owner to charge more rent to their tenants, meaning that you’ll be able to charge a higher price for them to buy it.
These upgrades or renovations can be big or small – this can be something as big as adding an extension to the property, or something as small as painting some walls and replacing some furnishings.
5. Become Familiar with Local Tax Laws
Learning the relevant taw laws in your country will allow you to take the best avenue when selling a property, in order to reduce the taxes you or the buyer will pay. Things like making the most of the tax code can allow you to defer paying any capital gains taxes and thus make a positive impact on your current finances if planning to buy another property.
Although selling a rental property often isn’t as easy as people may think, it’s also not too hard once you get your head around the basics. By striking a balance between the right price, quality, and overheads, you can sell yours for an excellent price.