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Tips For Selling An Investment Property

Submitted by: A. Kappauf

It isn t uncommon for sellers of rental property to fail to take helpful steps and thus, suffer accordingly. This article provides useful information to effectively sell rental property. Written with the domestic market in mind, many of its tips are useful for commercial as well as residential property sales.

Best Practices for Selling Income Property

Although landlords have a strong desire to let the tenants remain when a property is posted for sale, doing so can be seriously detrimental. The main reason for this is that tenants, having an interest in remaining put, sometimes do things to thwart the sale, such as damaging part of the property. Thus, there is a strong argument that, except in the rarest of instances, you should have the property vacated before you place it for sale. Other helpful steps include the following.

Improving the Exterior Appearance: Spend 20 minutes reviewing the premises surrounding your house. Does your lawn need mowing, should some bushes or trees be trimmed, does the exterior of the house need to be repainted, are your mailbox, front porch and exterior doors in good condition? Make a list of what needs to be done and schedule some time to accomplish it.

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Make Needed Repairs to the Interior: The list here may be extremely long, but to give just a few examples, do any repainting or retiling that is called for, fix ceilings having scrapes or holes, patch walls needing work, and repair damaged appliances. Surely, you know best what needs your attention.

Clean: Prospective buyers expect that every house they review will be spotless, and you should cater to this expectation. Though sometimes this may require hiring an outside cleaner, if such is the case, it is likely worth the expense.

Set a Reasonable Price: There are many different rules of thumb in setting the sale price for a rental property. Some experts advise sellers to assume that their monthly rental income is 1% of the property s value, while others urge you to obtain a property appraisal. That said, looking at what similar properties in your community recently sold for is usually the safest way to set the price.

Before Putting Income Property Up for Sale

Be sure you are comfortable with the following matters before putting a rental property up for sale. First, understand that although some sales occur quickly, when the economy is struggling it can take several months, possibly even a year or more, to close a sale. Second, because you ll likely remove the existing tenants to prepare the property for sale, you ll be without the associated rental income for an indefinite period. Third, even if a real estate agent handles the sale, you will be directly involved from time to time. After considering these factors, if you are comfortable posting the property, the following information will help.

Rental Property Agents

If your schedule does not allow you the necessary time to discuss the property with prospective buyers or you are uncomfortable doing so, you d be wise to use a real estate agent. Although agents typically charge a percentage of the final sale price, in struggling times many will negotiate their fee.

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