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Selling rental property in Colorado can be difficult or easy depending on where you’re at. Knowing when to sell your rental property is just one of many things people think about. Even though asking prices are breaking record highs, selling your home is a troubling thing to do for some landlords.
The selling process can take a lot of money and resources and hiring real estate agents can costs even more. When you think about it, selling rental property in Colorado doesn’t have to be hard.
Like most things, selling rental property in Colorado is about timing. Right now there’s actually more risk in buying a property.
Think about the current state of the market for rentals. Rental homes are well known for being hard to take care of, even with a caring landlord. Whether it’s having bad tenants or just not being able to keep up with expenses, a rental property can fall into a state of crisis in a couple years. Circumstances and running into problems with the home may be telling signs it’s time to let the property go.
Are you generating positive cash flow on the property? Even rental properties with high rents and in the best neighborhood can be too expensive to keep if you didn’t buy correctly.
Having a good rental property in Colorado means paying for property renovations, taxes, utilities, insurance and other monthly bills. Your tenants may even pay on time all the time. After expenses, is the bottom number good enough or do you have other sources of income to take care of unforeseen circumstances?
A good year for landlords can mean increased profit and equity. Don’t buy based off speculation though. Things change all the time. Think about your long term goals. If the property feels more like a liability than an asset, it’s time to look into selling rental property in Colorado.
Okay, so you made the decision to sell the rental property. What do you do? If you have tenants in place, you might be thinking about the problems concerning selling a rental property in Colorado with tenants.
Even if your emotionally attached because you have awesome tenants, selling your rental with a tenant(s) is different than selling it vacant. This is in part because tenants are not as motivated to show off the home in staged condition to sell the home. They can be scared of change.
Whether you like it or not, when you’re selling rental property in Colorado with tenants you’re selling rental property with tenants a buyer will most likely have to inherit. How many buyers want this other than investors? This can be a limiting situation because the buyers Realtors have are looking for move in properties. If they are willing to wait 6-8 months till the lease is up, you may have to sell in 30-45 days.
Best thing to do is communicate with your tenants, you gain the chance of them being willing to do their best to help you in advance. Last thing you want is the selling process to become even more difficult.
Some landlords even offer tenants a reward for keeping the home in great condition. These rewards can include lowering their monthly rent until they sell or giving them a gift card to their favorite restaurant.
Selling a property with tenants in place is not an impossible task. Definitely don’t stress. Despite there being buyers who have no idea what to do, there’s plenty of others who want this exact situation. You are actually helping them out from extra labor they’ll have to do in finding a tenant themselves. Get as many buyers as possible by asking tenants for help when selling a rental property in Colorado.
When selling rental property in Colorado, it’s smart to consider the taxes imposed from your initial purchase. You might not even be worried about this but of course we all know taxes are apart of earning income on a property.
In a seller’s market, like in Denver for example, your equity has increased for sure or you haven’t had any trouble with a vacancy. The tax signifies your rental property’s ability to earn positive cash flow and this is a positive attribute of selling rental property in Colorado.
But what about selling rental property that may be at a loss? No one buys an investment property expecting to lose money, but it happens to the best of us, right? There’s many things that can come up for someone to loss money. Like a market correction, natural disaster or running into tenants that trash the place.
Having to sell your rental property is a short term loss but it may be worth it to save you from trouble in the long run. If you fell behind on your mortgage, selling allows you to pay off the loan balance avoiding a foreclosure and having to evict good tenants. Selling rental property at a loss isn’t only a feasible solution to selling.
As we’ve mentioned previously, selling rental property in Colorado doesn’t have to be stressful when considering all the factors before closing.
We already have a solution for you and buying property with tenants in place from other landlords is common for us. Adam Buys Houses Company can make you a no-obligation offer within 24 hours from the time you contact us to buy your rental property in Colorado.
If you want to find out more about your options, do not wait another minute to call us today at (303)-558-5843. We look forward to hearing from you and letting you know how we can help.
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