Tips For Selling A Rental Property Without Losing Income
Posted on: 18 July 2019
If you are selling a rental property, you need to plan the sale differently than you would when selling any other type of property. This is particularly true if you want to maintain your income from the property during the sales period, which might take some time. Here are some of the tips you can use to sell the home without losing too much income.
Disclose Rental History
Many of your potential buyers are those who want to buy the property and rent it out again. Therefore, you need to disclose the rental history to reassure such people that the property they are interested in is a good buy. Some of the things you need to disclose are the rental income and the occupancy rates over the last year or so.
Keep the Property in the Rental Pool
Don't stop renting the property just because you have put it up for sale. Sure, navigating the showings and improving curb appeal might be difficult with a tenant in the house, but having a tenant has several benefits. For one, some people are hesitant to buy a vacant property due to the high risk of maintenance issues. Secondly, investment buyers may be attracted to occupied rental houses because they are assured of immediate income upon purchase.
Keep the Property Manager in the Loop
If you don't manage the property directly, then you should tell your property manager about the impending sale. Appraise the manager of the sale process so that they coordinate their activities to minimize potential disruptions. For example, you don't want a showing scheduled to clash with a maintenance schedule, and keeping the manager apprised of your activities will prevent that.
Time it Right
The best time to sell your property is during the high season. This is especially useful if you deal with seasonal or vacation renters. Your property is likely to be in pristine condition during this time. Potential buyers will also be able to see the vacationers (potential pool of tenants) and consider the neighborhood and property.
Incentivize the Tenants
Your tenants may not be too happy with the showings. You can provide your tenants with incentives such as rental discounts or dining vouchers to make the experience more palatable for them. You should also restrict potential buyers to scheduled showings so that you don't inconvenience the tenants too much. Work with the tenants to schedule the showings on appropriate days for everyone.
Share