Are you the owner of a rental property looking to sell? Being a landlord is a demanding job that requires a lot of time, effort, and upkeep. If you’re ready to leave the life of a landlord behind, there are some things you should know before selling a rental house or apartment.
From rental property tax considerations to the best way to sell a rental property, this guide will cover everything you need to know. Read on for a rundown of every aspect of selling a rental property, private landlords should be aware of.
Picking the Perfect Time
Timing is everything. It’s not always a great market to sell a house in, and this is something you should consider. As it happens, it currently is a great time to sell. Banks are offering favorable mortgage terms to hopeful buyers, and prices are rising across the country.
Also, worth noting is the fact that it’s better to sell in summer than in winter. There are even best days of the week to put your house on the market, which vary from city to city.
Taxes and Fees for Private Landlords
Selling your rental property is hopefully going to provide you with a big payout, but if you’re not careful, much of this can be lost in taxes and fees. Selling a home you live in has different consequences for your taxes than unloading a rental property for a profit. Unfortunately, selling your rental unit can lead to significant long-term capital gains and tax liabilities.
This is where you might want to take advantage of Section 1031 of the Tax Code. This provision allows you to avoid federal taxes on some exchanges of real estate. You can only do this if you’re planning on reinvesting some of the money you make into new ventures, however.
When it comes to fees, these are something you’ll usually have to pay your realtor. You should find out how much you’ll be paying and factor this into the selling price you set.
Setting a Selling Price
Setting the right selling price for your property is important. You don’t want to cheat yourself by selling something below the market average, but you also want it to sell quickly. If you’re especially eager to get it sold, you can try working with a company such as BestOfferKC, which specializes in this type of sale.
When you’re setting a price, you need to look at a few different factors. What kind of condition is your home in, and what are other similar properties in your area being sold for? Assessing these two areas will allow you to set a fair and accurate price.
Sell Your Rental Property Today
Selling a home is a little more complicated for private landlords than it is for your average person. We hope this guide has helped to highlight the main things to be aware of and factors to consider. If you’re looking for more assistance, check out some of our other articles now.
