7 Ways to Sell Your Rental Properties Quick and Easy
Being a landlord isn’t easy, and running an AirBnB may not pan out how the “gurus” say it will. It’s part of the game. If you’re burned out, you’re not alone. And that’s where we come in.
We talk to people in your situation regularly, and help them find solutions to sell their rental properties even when they can seem tricky because of the condition of the properties or restrictions that set by HOAs and local laws. But don’t worry, we have been doing this since we started in 2003, and we’re excited to share seven ways you can sell your rental properties quickly and easily. But first, make sure you don’t break the law.
If you have tenants living in the property, check your local laws and your rental contracts for rules about showing the property, how much notice you need to give your tenants before you sell, and other sections that impact the sale of a rental property.
7. Hire A Investor Savvy Real Estate Agent
Selling your rental properties on your own lets you save on commission costs, but a real estate agent that specializes in selling rental properties knows how to get you a higher amount. But there’s a downside, using an agent can be time consuming, you have to pay a commission, and you have to give up some control over the sale.
At the same time, using a specialized agent can reduce the amount of work you have to do so you can focus on your future life vs. trying to sell your rental properties.
And as an added bonus, specialized agents with experience in your area are more likely to know about the landlord-tenant laws and also the right of first refusal (ROFR), which may help to keep you out of trouble.
6. Auction Your Rental Property
Auctions are an easy way to get close to a fair market price for your rental property while saving you time since you won’t have to host open houses and negotiate with buyers. And once you’ve marketed the auction so you have a group of serious buyers in tow, you won’t have to wait for an offer. The offer comes at the end of the real estate auction.
With most auctions you are allowed to set a minimum sales price, this means you can at least get the minimum you need when selling your rental property. As an added bonus, the competitive nature of an auction sometimes gets buyers to spend more than a regular sale!
The downside here is that you have to build buzz about the property auction. And a rental property auction is different from a foreclosure where the property is listed publicly via the county and this brings in a crowd. And unlike a foreclosure auction, you keep the money instead of it going to the lender so you benefit and your credit score doesn’t get impacted.
5. Sell To A “We Buy Houses” Company
Selling to a “we buy houses“ company (like ours) can be the easiest and fastest option when you don’t want to be a landlord anymore.
When you sell to a house buyer, you don’t have to worry about doing repairs, hosting showings, stacks of paperwork, or evicting the current tenants. The home buying company takes over all of these responsibilities. And many times you can get an offer within a few business days!
This is the fastest way to sell a rental property and walk away with cash in your pocket.
4. For Sale By Owner
For Sale By Owner (FSBO) homes are sold by the owner without the help of a listing agent or broker. When you sell a rental property by yourself, you take on all of the risks and responsibilities associated with selling a home that a real estate agent would including:
- Researching comps
- Marketing the property
- Staging the rental home
- Hosting open houses and other showings
- Negotiating the sale price
- Getting all legal closing documents drawn up
- Having the deed prepared, signed and notarized
3. Use A Pocket Listing
You can choose a pocket listing to sell your rental home too. A pocket listing is an off-market listing or a property marketed to potential buyers through private channels and not on the multiple listing service (MLS). Sometimes they make the property feel special to the agents, investors and buyers you share with. This feeling of “being in the know” may peak their interest and get you a good offer.
Advantages of using a pocket listing are:
- You can market to a more exclusive clientele saving you the hassle of regular buyers.
- Keeping your privacy if you’re a public figure or celebrity as “star searchers” won’t start showing up since they don’t know the property is for sale.
- Getting bidding wars from high-quality buyers.
- Not having to share the number of price reductions on a public website.
- Being able to negotiate a reduced commission with your agent if you don’t do an FSBO as there is less work for the agent.
But much like a property auction, if you don’t use an agent you have to build the buzz and have a network of real estate investors, landlords and real estate wholesalers.
2. Sell Your Rental Property To Your Tenant
Finding a buyer can be as easy as offering one of your tenants the option to buy it. This saves you time and money marketing your rental home and lets them purchase the place they already feel is their home. However, you still go through the process as if it were any other buyer.
In many states, renters have the right of first refusal which means you have to offer to let them buy it before listing it for sale. Even if you don’t live in one of these states, offering your tenants the opportunity to buy your property gets their foot into the door of home ownership so it feels rewarding to them. And it makes your life easier because you don’t have to look for other buyers.
This is similar to a rent-to-own in that the tenant will take the property. In a rent-to-own situation, the tenant pays their rent as usual to you but only part of their rent payment counts as credit towards buying the property in the future. When you outright sell the property to your tenant, they will take out a mortgage, and you will be paid the purchase price of the home now.
1. Offer Seller Financing To Interested Homebuyers
If your tenant or interested homebuyer doesn’t qualify for financing, offer seller financing. Seller financing is when you extend a line of credit to your tenant instead of giving them a loan. The line of credit covers the purchase price (minus the down payment).
The buyer (your tenant) then makes installment payments (principal plus interest) to you. At the end of the term that you’ve agreed upon, the buyer then “refinances” with a loan from a bank and pays you in full.
This option allows you to sell your property as-is. If the buyer defaults, you keep the down payment and any payments they’ve made reducing your risk. The downside is that you are still involved and still need to keep track of what is happening.
If you are ready to leave “landlord life,” you now have seven options that you can use to sell your rental property quickly and easily! If you find that your rental property won’t move or you need to sell it faster, call us at (877) 804-5252 to learn about how you can sell your rental property for cash.
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- Do they have a physical office and staff to help you through the entire process, or are they just working out of their car?