With the real estate market in Florida (and around the U.S.) softening now, it could make sense to hang on to any rental properties that you own – especially if they are generating a nice monthly income for you.
But if you opt to move forward with a sale, there are 4 essential tips to keep in mind, as they could have a big impact on how much you actually net from doing so. These “must do’s” include:
Giving your tenant(s) ample notice. Just as your tenant(s) should give you a certain amount of notice if they plan to move out before the lease has ended, it is fair that you let them know what you plan to do with the property. Often, a lease agreement can be transferred with the sale of a property – so if the tenants wish to stay, that could be an option for them.
Being mindful of any potential capital gains taxes you may incur. The IRS tax breaks for the sale of owner-occupied properties are not extended to investors (unless you lived in the property for at least two of the past five years). Therefore, if the property is worth more than you bought it for, you could be hit with a capital gains tax.
Using good tenants as a possible selling point. Per the point above, if your tenants pay their rent on time and keep the property in good shape, you may be able to use this as a selling point to an investor who is interested in buying it.
Hiring a real estate agent who is well-versed in rental property sales. Unless you are a licensed real estate agent, it often makes sense to hand over the selling duties to a professional who also specializes in working with investors. These individuals can offer information on the rent trends in the area, as well as projected return on investment for potential buyers/investors.
If you decide to hang on to any residential real property(ies) in Orlando and/or the surrounding Central Florida area – and you would like to be relieved of the time-consuming duties like collecting rent, responding to emergencies, and performing regular property maintenance – you could turn to an experienced local property management team.
At Central Florida Property Management, we take care of all that – and more – for you, including keeping financial records, and even evicting tenants who are not working out the way you had hoped.
So, give us a call if you would like more details on how the process works. You can reach us at (407) 429-4834 or by emailing any questions that you have to Contact@CFLPropManagement.com. We look forward to hearing from you.