What is the Best way to sell my rental property?
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A common questions asked by investors, when it comes time to selling one or more of their homes, is: Whats the best way to sell my rental property?
Start by moving the tenant out of the property. Incentivize them by offering to pay for their move, offer them the use of another property or help them find a suitable rental. Do whatever you can and have to, but get them out of the home so that you can sell it empty.
I was going to explain, in todays episode, my reasons for advising to sell the property without tenant, but the episode would get too long, so we will have another podcast titled “What NOT to do when selling your investment property.”
For today, let's assume that you agree, and have successfully removed the current tenant . So whats next?
First, the goal is to make this home attractive to a home buyer who wants to buy it for themselves. NOT another investor (the reasons for this will be explained in another podcast)
Depending on your price range, the home may appeal to a first time home buyer, so let's get it ready.
Fresh paint, in and out, fresh carpets, replace old lights and switches, fix anything that's broken. Modernize it within reason….. if the kitchen is 20 yrs old but still looks good, don't replace it. If the toilets are stained and gross, replace THOSE.
Interesting side story: I had a bachelor suite for sale. Seller did not want to spend any money on it, so it was clean but not staged. Potential buyers had trouble imagining living in a suite without a bedroom, so it remained on the market for a full year.
When the listing expired, the seller finally took my advice and we hired a stager who showed the possibilities in this cute, quaint space.
Result…….SOLD within 10 days. Staging WORKS.
Ok, the place is ready for to be listed, and shown to an adoring buying public. Call your listing agent and tell him/her “I want to sell my rental property”.
Transcript of the Audio Podcast
Well, hello, everybody, and welcome to this episode of the Bo Knows Real Estate podcast.
The question today is what's the best way to sell my rental property? Not the only way, but what I think is the best way to sell your rental property. In my opinion, you start by moving the tenant out of the property, incentivize them by offering to pay for their move. Offer them the use of another property. Maybe help them find a suitable place. But do whatever you have to to get them out of the place so that you can sell it empty. In today's episode, I was going to explain my reasons for doing so, for telling you for advising you to move the tenant out, but the episode would've gotten too long.
So we're going to deal with that in another podcast entitled What Not to Do When Selling Your Investment Property. So for today, let's assume that you agree and you're on board and you've successfully moved the tenant out. So what's next?
Well, first, the goal is to make this home as attractive as possible to a home buyer who wants to buy it for themselves, not another investor. The reason for that is going to be explained in that other podcast episode.
Depending on your price range, your home may well appeal to the first time homebuyer. So let's get it ready. You start by hiring a handyman or a painter and let's get fresh paint in and out. Fresh carpets replace old lights and switches, fix anything that's broken, modernize it, but within reason.
So if the kitchen is 20 years old but still looks good, don't replace it. But if the toilets are stained and gross, replace those. Next, call a professional stager and stage the home. They know how to make a small bedroom look bigger. How to accentuate the positive while minimizing the negative.
Here's a little side story to explain that. A little while ago I had a bachelor suite for sale. For those of you who don't know what that is, it's literally a very small space that has living room, kitchen and bathroom. That's it. No, no bedroom. So it was up for a while and the owner of the suite didn't really want to spend any more money. So it was clean but not staged. And potential buyers were having trouble imagining living in a suite without a bedroom. So it remained on the market for a full year.
Then when the listing expired, we re listed it. We and the seller finally took my advice and we hired a stager who showed the possibilities of this cute, quaint space. By the way, cute, quaint means tiny. This place was like 400 or 425 square feet. The results it sold within 10 days. Staging does work. Okay. Back to your rental property. It's been fixed up, painted, somewhat modernized, staged, and it's ready to go on the market. So call your listing agent. Put it on the MLS and show it to the adoring buying public.
Now, you've spent a lot of time, money and effort modernizing it, updating it, painting it, staging it. Make sure your agent takes proper photographs. Better yet, make sure he hires a professional photographer to show this house in his best light to attract as many buyers as possible because you want to sell it quick and for top dollar. Now, I did say in the beginning that this isn't the only way to sell a rental property. In my opinion, it's the best way.
But if you can't afford to be without a tenant for two or three months, which is what it's like, they're going to end up being. I understand that and I respect that. However, I feel so strongly about this that I rarely take listings that have tenants in them, because at the end of the day, I believe you're going to be underserved. You're not going to be happy with the results. And I know that you can get a lot more money doing it this way for my list of reasons of why you don't want a tenant in there. Check the next episode, which is gonna be entitled What Not to Do When Selling Your Investment Property.
And if you've enjoyed this episode “Best way to sell my rental property”, please subscribe on your favourite part catcher or go to BoKnowsPodcast.com Till next time. Bye bye.
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About the PublisherBo Kauffmann is a residential real estate agent with over 18 yrs experience in helping buyers and sellers achieve their goals. Inducted into the REMAX Hall of Fame in 2010 and receiving the REMAX Lifetime Achievement Award in 2019, Bo has sold over 500 houses and condos in the Greater Winnipeg market. He is an accredited buyer representative (A.B.R.) and a Luxury Home Marketing Specialist. Bo provides exceptional service to First-Time Home-Buyers, Seniors looking to downsize and Home Sellers of all ages. He can be reached easily By E-Mail or call/text him Call/Text Here
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