Selling an investment property is different than selling your primary residence. The added stress is that you might be trying to sell while the unit is occupied. The most important element of selling is to abide by your tenants’ rights. To ensure a smooth selling process we recommend informing your tenants of your decision before you list the property. You will need their help and cooperation to sell. These are three other very important things you need to consider before you list your investment property.
#1 When Should You Sell
Determining when to sell your property comes down to two major factors: when your tenants' lease ends and the current market. Both are aspects you need to discuss with your real estate agent. Especially if you are looking to buy a new property with the revenue you make off the current sale.
#2 Marketing Your Property
Talking with your real estate agent you must determine first who your buyer is. Are they another investor? Or are they buyers who intend to live in the space? It is important to decide as there are extra marketing tools you can use for each. For another investor, you can demonstrate how you currently have a tenant who is paying market rent. For a buyer who intends to live there, you will market the space as a home rather than an investment.
Two other important elements of marketing the property are staging and photography. Both of these things will impact your current tenants. Workaround their schedule and get their support to maintain the space and look after extra decorations or furniture a stager adds. Hopefully, your tenant isn’t messy. But if they are you might need to ask them if you can send a cleaner in before the photographer arrives.
#3 Signing New Leases
If you are planning on selling it is very unwise to sign any new leases. Even if you intend to sell to another rental investor there is nothing to say they will want your current tenants. It is much easier to sell a property that has tenants on the way out or that is currently vacant.
For any more tips or advice on how to sell your rental property please get in touch with us.
At Knowledge Broker, our goal is to create an open-source of information for all our clients. We want to ensure that, at the end of the day, they get exactly what they want and what they need. If you know someone who could use our help or services please put them in touch with us or send us their details using the contact information below. And before you go, click here to take the Knowledge Broker Quiz and see exactly what we can do for you!