What’s involved in selling a rental property? As you can imagine, there’s a lot more to it than just hiring a real estate agent and putting it on the market.
For example, you may have tenants to think about or repairs that need to be made in order for the property to sell for the best price. It’s important to go into the process armed with all the knowledge you need to achieve your home sale goals. This comprehensive guide will cover everything from deciding when it’s time to sell, to getting your property market-ready.
Timing: when to sell a rental property
You thought long and hard about investing in a rental property—and you should think just as much about the best time to sell that rental property to maximize your net profit. There are a few times that are ideal for selling your rental property:
Your equity is high
Did you buy the property years ago, in good condition, and for a relatively low price? If so, and the property value has appreciated since then, it may be a good time to list the home.
It’s a seller’s market
For obvious reasons, homes tend to sell quicker when there are more local buyers than homes available—they also tend to sell for more. Consult with a real estate agent to understand if it’s a strong seller’s or buyer’s market before taking the steps to sell.
You want to diversify your investment portfolio
If your rental property doesn’t fit into your investment portfolio and investing strategy, why hang onto it endlessly? Letting it go could give you the cash to fund your next investment.
You no longer want to manage the property
Maybe you inherited a property and have no interest in being a landlord. Or maybe your interests and circumstances have changed and you’re ready to move on. In either case, this is a great reason to sell.
The property needs significant repairs
When a property needs significant repairs that you cannot afford or simply don’t want to tackle, this is a good indicator that it’s time to sell.
If you and your real estate agent choose to work with Curbio for pre-listing home improvements, you can reap the benefits of tackling those repairs without the time commitment and stress. Plus, you can put the money from the sale into an even better investment. The best part about working with Curbio is that you don’t pay for the work we complete until closing, meaning you don’t have to pull money from your investments to maximize the sale price of your rental property. Learn more about how Curbio works.
Now, let’s discuss some of the updates and other preparations you should check off before you list, in order to ensure your highest net profit.
What to do prior to selling a rental property
Once you’ve made up your mind about whether or not to sell your rental property, there are several things you’ll need to do to prepare for the market.
Select an experienced real estate agent
One of the most important boxes on your home selling checklist should be finding a great real estate agent to guide you through the rest of the steps. They’ll be able to tell you about market trends, help you decide on the best pre-listing repairs and renovations, create a smart pricing strategy, and help you each step of the way from preparation to closing.
Make smart, pre-listing home improvements
80% of buyers are looking for move-in ready properties. Whether your property needs significant repairs or simply looks a little lived-in, making smart home improvements before you list will help you sell faster and for significantly more.
As a real estate investor, you likely already have some ideas about which repairs and updates you need to take on to maximize your home’s value and sale price. Making these decisions with a licensed real estate agent and one of Curbio’s Home Improvement Consultants will only help you ensure the returns are there for the improvements you choose.
By working with Curbio, you get all the benefits of sweat equity, without the sweat. We don’t just defer payment until closing with zero fees, interest charges, or premiums. We also manage and execute the entire project from proposal to punchlist, ensuring peace-of-mind through frequent updates about schedules and progress via the Curbio app.
Give your tenants ample notice
Not only is it courteous to give your tenant notice that you’re going to sell, but it’s the law. Some states require 30, 60, and even 120 days’ written notice. Be sure to check the timeframe in your state to avoid any legal trouble.
Depending on your state, you may be required to wait until your tenant’s lease expires before you can sell the property. Otherwise, you may be able to sell the property to your tenant, sell to a new owner with an active lease in place, or pay the tenant to move out.
With decision making and prep work out of the way, it’s time to list!
Whether it’s time to free up cash for a new venture or you’re selling to have money for retirement, when it comes to selling your rental property, of course you want to maximize profit. The problem is that after having tenants living in a property, there is always some wear and tear—and oftentimes, there are major repairs and renovations that need to take place before listing.
When it’s time to let go of a rental property though, the last thing most owners want to do is put time, money, and energy into the property. So how do you maximize profit without sacrificing your resources?
With Curbio, rental property owners can sell for a gain without handling any repairs, refreshes, or renovations themselves—and without any upfront cash. Curbio is famous for its “Renovate Now, Pay at Closing,” model and unparalleled pre-listing expertise. Learn more about how it all works.