Selling a rental property can be as hard as managing one, and with certain tax implications, it can become a complicated procedure. There are rental property experts who can advise when selling a property, and here are a few tips straight from the professionals that should help you with the sale.
1. Ustify Your Rental – Compiling a 10-year pro forma will certainly help a potential buyer see how they can make money on the deal, and by adding 3% for inflation, this would be about right. You should also remember to include expense growth.
2. Keep the Tenant in Place – A potential investor is more likely to purchase a rental home if it already has a tenant in place, which eliminates the risk of not being able to find a suitable tenant. From the buyer’s point of view, being able to find a tenant for a rented property is another variable, and with sitting tenants, they are guaranteed an income from day one.
3. Highlight Appealing Features – When a person buys a property with a view to renting it out, they should be aware of the property’s strong points, which will help them to find the right tenants.
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4. Don’t Make Fancy Improvements – If you are selling a property to someone who plans to live there, then investing in improvements is a wise move, but if the house is to be rented out, then such improvements might not fit the new owner’s ideas. The last thing you want is to carry out improvements and then find you cannot get a return on your investment.
5. Raise Rents Before Putting The Property On The Market – If you haven’t raised the rent for a few years, it might be that the rental is under the market value, and this will make it that little bit harder to convince a potential buyer. If the property is undervalued on the rent, then raise it prior to putting the property on the market.
6.Use A Good Conveyancing Solicitor – By using a quality conveyancing firm such as https://www.rivercityconveyancing.com.au/, you will have the best professional assistance with the legalities, plus they can advise you about taxation liabilities.
7. Offer The Property To Your Tenant First – This could be a great opportunity for both tenant and landlord, so always offer the property to the tenant before putting it on the open market. It is possible that the tenant is planning to buy soon, and if they like where they are living, buying would seem like a good idea.
8. Make The Property Look Respectable – As you would if you were selling your own home, you should take steps to ensure that the rental property is in good order and is clean and presentable.
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All of the above are good ideas that should increase your chances of selling the property for the price you are asking, and with the help of a good local conveyancing solicitor, it should not be long before the right buyer comes along at the right price.