Selling a rental property is a major decision in the life of a homeowner. Rental income forms the backbone of many high net worth investors’ portfolios, but, as with any type of investment, there comes a time to sell and move on to a new investment opportunity. With real estate, you may be considering a purchase of a larger or more luxurious home as a linchpin in your growing portfolio’s returns.
Culling older or lower performing investments is just part of the rebalancing process. However, when it comes time to sell a rental property, shifting the asset as quickly as possible is often in your best interest as the home’s owner. The longer you own the property, the longer you will be liable for property taxes, mortgage repayments, and the upkeep and maintenance needs of the property itself. As a result, learning to sell investment properties rapidly is something that all real estate investors must do.
Look into quality of life upgrades that will increase resale value.
Homeowners all over the country invest a considerable amount of time and energy into the upkeep and renovation process in the homes that they own. The renovation sector is a $400 billion a year industry, and for good reason—homeowners are always looking for ways to increase their level of comfort in their homes. This helps a homeowner who is looking to sell, because quality of life upgrades mean a higher price tag on the listing and more interest from prospective buyers in the market for the type of property that you have to offer.
This means looking for creative ways to design a small kitchen in an apartment, or the addition of a new patio in the back for stand-alone homes. Kitchens, outdoor space, and high quality flooring are all major draws for prospective buyers, and if you engage in these upgrades throughout your home’s lifetime under your ownership you can even list the property at a premium while you are renting the space.
The greater your monthly income on the property the better off you will be, obviously, but this comes with a tradeoff. The more you sink into the home, the more you will want to see a return on your investment. This is why luxurious quality of life upgrades like kitchen countertops and hardwood flooring that will last for decades are a must have upgrade for many landlords in the United States and around the world. With a markup on the upfront cost you can leave these features in the home for years without any required maintenance and reap the rewards throughout this time in the form of increased rental payments.
Lean on your property management company for tips and tricks.
Many homeowners that rent out a second property rely on property managers in Tucson (or wherever they are) for the day to day operations in the home. Renters need a quality point person to discuss repair work, rental arrangements, and leases, and landlords are often more than happy to delegate these and other tasks to a professional management firm for a small cut. If you are using a property management company to conduct business for you by proxy you might be able to gain some important insight on the sales market in the local area as well.
Property managers provide a great way to relieve the stress associated with the responsibilities of a landlord without giving up the incredible profits that rental properties often bring in. For a fee off the top, a management firm will maintain the property and deal with your tenants on your behalf. This allows you to relax and simply watch the rent checks arrive in your bank account each month.
Searching for ‘how to sell my house fast’ will return you some quality advice, but the best way to go about listing and finalizing the sale of a rental property is through the traditional channels. Utilizing a real estate agent is a great benefit to any homeowner looking to part company with a property. Real estate agents are professionals with years of experience operating in your particular market and know just how to reel in prospective buyers with an attractive price point that meets the needs and expectations of both parties.
Show yourself as a professional as well.
When you want to sell your home it’s important to show yourself as a professional, in addition to having a gorgeous home. Staging your home is a great idea for helping to show the viewers an open floor space that they can envision their belongings occupying. But staging isn’t the only important step when approaching a sale—you also have to put your best foot forward. Adding a black sweater to your lineup is a great way to dress in stylish and professional looking attire that helps sell you and the property that you are offering.
First impressions are a powerful tool in the sales business, and when you are selling a home it’s important to remember that, in a way, you are selling yourself as well. If buyers don’t build a good first impression of you, as the seller, then they are likely to translate these negative feelings into the property that you’ve listed as well, regardless of its merits or faults. This is especially important if you are selling the home yourself rather than with the help of a professional realtor. A sale by the owner is a great way to cut down on fees, but you will have to make the sales pitch and show off the house without those additional touches that a realtor brings to the table. You may be entirely capable of these tasks as an experienced landlord, but the finishing touches to your appearance may be the thing that makes or breaks a sale.
Selling your home might require you to make some alterations to the layout or available amenities, but the most important part of any home sale has to be your professional approach to the entire process. Make sure you go into the endeavor with your eyes wide open.