As purchasing a home can be a tedious task, selling your residential rental property can sometimes be cumbersome as well.
You may want to sell your real estate lease building because you’re relocating and don’t want to deal with tenants from afar, or you may have inherited the structure and don’t like being a landlord.
Whatever the reason may be, finding the best price and buyer can sometimes take several months, if not years, when you don’t take the proper steps.
A few measures that can aid the sale of residential rental property are:
Conducting a Market Analysis to Help You Determine Price
When selling a rental property, the first thing to do is determine how much to charge.
Pricing real estate structures tend to be a bit complicated because high prices can discourage buyers and keep the home on the market for long, and a low price can result in substantial capital losses.
To determine a suitable price, you can consider looking into the going prices of similar properties in your locale.
Be sure that all of your numbers are ordered and accurate. Rent projections that are too high and costs that are hidden never end well in the long run.
Hiring an Experienced Real Estate Agent
As tempting as it might be to try to sell your building on your own, employing an experienced real estate agent would make the job easier for you because the agent already understands the market and knows the steps to take to get potential buyers.
The realtor can suggest some upgrades on the property to increase your profit, such as: putting in a hot tub, building a gazebo, or any other attractive amenity.
You can consider selecting a realtor who also provides property management services because most of them usually have a list of potential investors that they can utilize.
Advertising Said Property on the Internet
One way to facilitate the sale of investment property is to list the structure on online websites.
An advantage of online real estate advertising is that it gives prospective buyers exposure to a broader platform while the owner gets to reach a larger target audience.
You can consider searching for the best short-term rental sites to showcase pictures of your residential property or create a sale of rental property page and direct potential buyers to it.
Hosting an Open House
One established tactic for making a profitable sale is to host an open house. It’s a chance to make your home stand out from the crowd.
While it is said that an image is worth a thousand words, nothing beats the feeling of seeing a home physically.
When combined with a fair price point, a decent open house can build a sense of demand capable of pitting prospective buyers against one another but to your advantage.
Consider Selling To Your Tenant
Another option that can aid the sale of residential rental property is to sell to your occupant.
Your tenant might be interested in buying the house from you in some situations, especially when they have lived there for long and aren’t ready to move.
If the occupant has a stable source of income, you can consider offering him or her an option to pay for the property in installments.
In this scenario, if the inhabitants usually pay their rent on time, then there would be a level of trust in place, and the landlord can be confident that the tenants will come through with their payments.
Hiring a Copywriter To Write a Compelling Sales Copy
Since the real estate market is harsh, and the process of selling a house can be daunting for first-time sellers, you can consider hiring a great freelance copywriter to help you create a sales copy to sell your property.
The first level of contact with your customers is often done online. When prospective clients conduct online searches for vacant residential properties, your sales copy can persuade them to buy from you.
Besides posting your sales copy online, you can also advertise it in newspapers so that buyers who are not tech-savvy can see it too.
Marketing the Structure Locally
A strategy that can aid the sale of residential rental property is to begin by selling to your circle of influence.
Consider talking to your friends, family, and the people in your neighborhood about the building you’re trying to sell. You can never tell; one of them might be looking to acquire a new home or might know potential buyers.
People are hesitant to do business with family members. But, if the opportunity presents itself, it should be pursued. Don’t you want the best options for the people you like?
Selling with a Running Lease
In a situation where you intend to sell your rental property while it is still occupied, one option would be to sell it with the active lease in place.
You will search for a buyer who is willing to purchase the property along with the current rental policy. The new owner then allows the tenants to complete their lease period, after which he or she will decide whether to continue with the same tenants or change them.
The benefit of this transaction is that you quickly liquidate your property and turn the keys over to a new landlord. The buyer, seller, and tenant(s) all enjoy a reasonably smooth agreement.
Consider Selling to a Real Estate Firm
A quick way to get your residential rental properties off your hands would be to sell them to real estate firms such as vacation home rental companies.
This process would be relatively easy if your structure has excellent amenities and is in an attractive neighborhood.
Holiday home rental businesses are always looking to expand their portfolio, so they would quickly jump on your offer if it ticks all their right boxes.
If your property doesn’t have excellent amenities but you’re intent on selling to a real estate firm, you can consider adding such upgrades to it.
Opting for a 1031 Exchange
Perhaps you want to sell a low-performing rental property in a deteriorating environment, but you’d like to try your luck in a new neighborhood.
You could sell one property and then purchase another similar one with more income potential, and you won’t have to pay capital gains tax if you use the 1031 exchange.
In this scenario, however, the structure you buy can’t serve as a primary residence. It must be a rental or resale home.
Following any combination of these steps will be sure to get that real estate property off your hands.