How to Sell your Rental Property for More Money

Have you thought about what it would take to sell your rental property?

Landlords are bailing out. Owning rental property is not as glamorous as it once seemed.  Property taxes have skyrocketed since 2021.  It’s the same story with insurance.  Hailstorms, tornadoes, hurricanes, and wildfires in the state of Texas have made insurance companies raise premiums to an all time high.  Labor and material prices have gone up too, assuming you can find anyone willing to do the work.  Last but not least, high interest rates are robbing cash flow.  Many landlords set up loans with adjustable rates for 3 or 5 years.  What was once an attractive 4.5% loan is now adjusting to 9%.  All of this adds up to be a terrible return on equity. Landlords can easily end up losing money every year on a property that has a lot of equity.  It often makes more sense to sell the property and invest the money elsewhere.  

The problem is that the rental property market is soft.  All of the reasons that motivate investors to sell rental property are the same reasons many people are hesitant to buy rental property.  When interest rates, property taxes, and insurance premiums are up, prices have to go down.  It all boils down to monthly cash flow.

Raise the Rent

The easiest way to increase the value of your rental property is to raise the rent.  Many landlords who call us have tenants paying well below market rent.  Most of the time a small increase won’t upset that apple cart.  Once you raise the rent, investors can afford to pay more. 

Make a List of Improvements

I always tell people, the more I know about the property, the more I can offer.  If you are planning on selling your rental property to an investor, make a list of any improvements you have made.  Savvy investors like buying properties that have been well maintained over the years. 

Move the Tenant Out

The homeowner market is stronger than the investor market right now.  If your tenant is not locked into a lease, you might consider giving them a 30 day notice of non renewal.  When the tenant moves out, make a few repairs to the property.  You don’t have to go overboard, but get it move in ready.  This will allow you to sell the property to a homeowner for top value.

We are still buying rental property. 
We also buy package deals every year directly from investors. 
If you are thinking about selling your rental property, give us a call. 

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