Selling your property can be an intimidating process, especially now that the COVID-19 pandemic has brought a lot of uncertainties.
Trying to sell a rental property is quite similar to putting your residential home on sale. However, there are a few factors that can make this transaction a little bit more complicated. For instance, you might have to choose whether to sell it with or without the tenants. Of course, with people living in those apartments, it can be quite challenging for the potential buyer to survey every corner.
This article aims to discuss how you can avoid these challenges and sell your property successfully. Here are some of the tips to keep in mind:
Study The Local Housing Market
For you to effectively sell your rental property or any other property for that matter, it’s important that you evaluate the region’s market. Understanding the housing and rental market will give you a good idea of how much your house might cost and what to expect from the buyers. Real estate agents can give you plenty of support in terms of information, but doing a little research of your own might be quite significant in your sales.
So, where should you start with your research? Well, most brokerages are always ready to offer their quarterly or yearly reports. This information usually gives a reflection of the current market state. Look through the prices posted by some genuine home buying companies in your area, like Gem State Cash Offer. Make sure to look at the current data since market prices can rapidly change within a very short period.
Also, as a home seller, you should immerse yourself in everything related to real estate within the region. This way, you’ll be able to pick out some informal data that might be crucial, but is missing in most reports. Watch business news, read magazines, and use the Internet for you to get the latest updates on the subject. There are many sources of information in the world of real estate. Once you have the data with you, make sure to do a thorough analysis before planning your sale.
Understand The Tenancy Agreement
Unlike your residential home, a rental property is a source of income. Therefore, this will come into play when trying to sell it to any buyer. Will the other party accept to buy the property with a tenant or without one? Well, it all depends with the type of buyer with whom you choose to transact. For instance, if you’re selling to a general buyer, then, the property must be vacated before the selling process kicks off. You wouldn’t want to run into complications before you can even start discussing the transaction details.
The most commonly used tenancy agreement is AST or assured shorthold tenancy. With this agreement, you have the right to write an eviction letter to the tenant provided, the initial six-month period has elapsed.
The law dictates that the eviction notice should be served at least two months prior to the actual date. After this has been done, you can, then, go ahead and market the property while waiting for the tenant to vacate. Afterwards, the buyer will come and take a look around when the house is empty before deciding whether or not to sign on the dotted line.
Minimize Property Expenses
To get your property sold as quickly as possible, it must be in good condition. In addition, the price should be quite reasonable with regards to the market and the estimated value of the property. Of course, having done your research as suggested earlier in the article, you already have an idea of how the market works. Therefore, coming up with a price range might not be difficult. The hardest part is the renovation process.
Home buying agencies are always happy to buy your property in ‘as is’ condition. However, what happens if you’re selling it directly to an interested client? In such a case, the current condition of the property might play a huge role in the price negotiations. Therefore, it would be a good idea to carry out some renovations before listing the house or apartment. In so doing, make sure to minimize all the related expenses. This way, you’ll have enough room to adjust the prices and attract more genuine buyers.
Hire A Professional
As earlier stated, doing your research will help you in the process of selling your rental property. However, regardless of the knowledge you’ve gathered, finding a realtor to market your property and handle all the technicalities is, still, crucial. The fact that this could be the most important transaction in your economic life, you wouldn’t want to mess things up just because of ignorance.
Remember, at the negotiations table, you’ll be dealing with people who are far more experienced in the market than you. Therefore, hiring a real estate agent will make it a level playing ground for both parties.
Still wondering why you should invest in a realtor? Here are the benefits:
- They have the knowledge and experience in the market and the laws involved in the process.
- You’ll save time and energy that would have otherwise been wasted doing the negotiations.
- Realtors are always up-to-date with the market conditions around the neighborhood.
- They’ll guide you in the price estimation process and ensure that you sell at the right amount.
- You’ll also afford the luxury of a large network of potential buyers
Selling a rental home can be quite intimidating, especially if you’re doing it for the first time. Are you in this situation? Well, the information provided in this article should help you build your confidence and make the right decisions before making the big sale. Doing your research before making any moves is very crucial.
Learn all the laws involved in the process, including the taxes expected from you after the sale. Understanding all the factors and procedures will give you an idea of what to anticipate before, during, and after the transaction. Of course, to be on the safer side, it’s recommended that you secure the services of a professional real estate agent. This way, you’ll be able to make the best out of your rental property.