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When Should You Sell a Rental Property?

When Should You Sell a Rental Property?

When Should You Sell a Rental Property?

Investment properties can be a lucrative source of passive income, but factors like profitability, maintenance, and the housing market at large can become good reasons to sell a rental property.

It is reported that roughly 16% of landlords reported plans to sell an investment property in 2022.(Source) If you’re wondering whether to sell your property or when to sell it, here’s what to know about selling a rental property.

 

How Do I Know if I Should Sell My Rental Property?

Determining whether to sell or keep renting your property depends on a variety of factors, but these are a few indicators that it may be time to consider selling:

  • Profitability: Ideally, your rental property should bring in more money than you’re spending to maintain it. If the rental income you’re generating isn’t higher than the cost of your annual operating expenses, the profits (or lack thereof) may not be enough to justify holding on to the property.
  • Maintenance: Maintenance is an unavoidable part of owning a property, but it can be time consuming. If the time and money spent on rental property maintenance becomes overwhelming, it may be time to consider hiring a property manager or selling.
  • Tenant turnover: High tenant turnover can be the result of many things — the rental market, the property itself, or even your style as a landlord. But high tenant turnover means spending time and money advertising your property and losing rental income due to vacancy, which can become unprofitable over time.
  • Property finances: Financial factors like property appreciation, capital gains from selling a rental property, and new investment opportunities should be considered, too. If your rental property is worth a lot more now than when you bought it or you’ve identified an even better investment opportunity, it could make sense to sell. Note that it’s important to be aware of any capital gains taxes from a sale and how to defer them with a 1031 exchange.
  • Housing market: The current housing market can dictate how much you can charge for rent, how high tenant turnover is, and how valuable your property would be if you were to sell. In highly competitive housing markets, landlords may be more incentivized to sell a property.
  • Location: If you’re moving away from your rental properties, you can always try long-distance real estate investing. But since this often means hiring a property manager, some landlords opt to sell their rentals, instead. 

What To Do Before Selling a Rental Property

Before you list your rental property on the market, a few things need to be handled:

  • Notify your tenants: You’ll need to give tenants appropriate notice that you’re selling the property. The amount of notice often depends on your lease and local laws, but can also dictate your timing for listing the property. In some cases, tenants will need to leave the property, but in others, a new owner will take over the rental lease.
  • Prepare the property: Once you notify tenants of the sale, you’ll need to prepare the property for sale. This consists of a property inspection — regardless of whether tenants are staying or leaving — to identify any wear and tear or damage and address any needed repairs. If tenants have moved out of the property, it may be a good time to tackle property renovations that will help increase the value of the rental.
  • Research home value: Doing some research on your property’s value is essential, even before working with an agent.
  • Work with an agent: You can sell a property on your own, but most sellers choose to work with a real estate professional to make the selling process a lot smoother. An agent will be able to help you prepare the necessary paperwork, get your property in front of buyers through a multiple listing service, and assist with the entire home-selling process.
  • Time your sale: To avoid being hit with short-term capital gains tax, it’s commonly advised to hold on to a rental property for at least one year. In some cases, you’ll want to wait until a lease has expired or allow time to complete renovations. An agent can help you make decisions about when to list your property on the market. 

Resources for Selling a Rental Property

When you’re ready to sell your rental property, Remax Heritage Bardell Real Estate (863) 424-2309 or visit our WHATS MY HOME VALUE where we can help you track your property’s value and match you with a trusted real estate professional to guide you through the home selling process.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

​How to: Track Rental Property Expenses

​How to: Track Rental Property Expenses

​How to: Track Rental Property Expenses

​How to: Track Rental Property Expenses

 

Tracking your rental property income and expenses requires time and resources to keep everything organized. We share best practices on how to track rental property expenses and tips on how to properly manage rental tracking.

 

What Does Rental Tracking Consist of?

Rental tracking involves identifying which operating expenses need to be accounted for and creating a process to periodically track them. This can be done with a rental property expense tracker to streamline the process for you or via a spreadsheet if you prefer to do it yourself. Regardless of your bookkeeping method, all of your records should include accurate and up-to-date information on your rental property accounting.

Having inaccuracies on financial documents can make it difficult to analyze how profitable your rental is and correctly fill out your tax forms.

 

Important Records Landlords Should Save 

Storing important records makes it easier to log accurate expense totals and have supporting documents to share with the Internal Revenue Service (IRS). There are six types of records you’ll want to save, including the following:

  • Receipts and invoices: Receipts and invoices from contractors (such as maintenance or property managers), software platforms, utility companies, and supply stores should all be saved to prove the expense amount. 
  • Bank statements: Bank statements can be a great way to illustrate a months’ view of income and expenses, but the bank account should be used for only property-related transactions.
  • Proof of rent payment: Rent payment documents show how much the tenant paid in rent, the date, and for which rental property.
  • Mortgage loan documents: Your mortgage documents show how much you pay each month with a breakdown of the principal, interest, taxes, and insurance.
  • Federal and state tax returns: Store your previous federal and state tax returns in a safe place for easy reference. 

Identify What Needs to Be Tracked

Identifying what needs to be tracked can make it easier to organize your transactions and update your financial records. Some examples of income and expenses to track are: 

  • Recurring rental payments (rent, parking fees, pet fees)
  • One-time tenant fees (move-in fees)
  • Fees to break a lease
  • Security deposits used to cover unpaid rent or property damage
  • Recurring monthly expenses (mortgage, HOA fees, property taxes)
  • One-time fees (maintenance, legal fees)
  • Property depreciation.

Check Income and Expenses With Bank Statements

There can be discrepancies between your financial documents and bank statements. Periodically check your financial documents to ensure all the information is correct, especially once you know how much certain expenses totaled out to. 

Doing this throughout the year can help you catch anything worth adjusting and make it easier to complete your tax forms.

 

Looking for an Experienced Residential Property Manager?

If you have a home to rent in the Orlando area be assured there is no substitute for experience. Covering Clermont, Winter Garden, Windermere, Dr Philips, Kissimmee, Davenport, Champions Gate, Hunters Creek and Haines City. We remain focused on this greater Orlando area to ensure we are able to provide outstanding service to our Clients without sacrificing performance. Looking for an experienced residential Property Manager in the Orlando area with a demonstrable track record – look no further.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

Beautiful Davenport Home Just Listed

Beautiful Davenport Home Just Listed

Beautiful Davenport Home Just Listed

345 Old Bridge Cir, Davenport, FL

$450000

4bed – 3bath – 7405.2 acres lot
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Beautiful executive pool home on good sized corner lot. This 4 bedroomed furnished property will suite the most discerning buyer. Pride of ownership shines through as soon as you pull onto the paved driveway. This well designed home draws you into the home as soon as you enter the entrance hall. The beautiful archways leading door the hallway corridor entices you towards the heart of the home. The large large living and dining rooms sit alongside each other and enjoy lots of natural light. The living room has sliding patio doors and also sits alongside the dinette with views of the private pool area. The kitchen has ample storage including pantry, wall and under counter cabinets as well as counter and breakfast bar. This floorplan works well for a primary residence, second home or vacation home as the two ensuite bedrooms are located off the corridor providing access to these bedrooms and laundry room whilst the additional guest bedrooms are off the right side of the entrance hall as you enter the front door. The large owner suite overlooks the pool area which is accessed through the sliding patio doors or from the master bathroom which also doubles as a pool bath. Architectural features and rounded corners add a touch elegance to the property. beautiful laminate flooring in all bedrooms, hallways and living areas, installed in 2019 as well as newer AC and brand new roof. Your personal oasis includes the covered lanai which sits alongside the pool and spa. he covered lanai is perfect for someone who enjoys alfresco dining or looking for respite from the beating Florida sun. The colorful garage is currently used as a games room but could easily convert to back to a traditional garage. West Stonebridge is ideally located off highway 27, just minutes from the world’s greatest theme parks, attractions, shopping and restaurants, with easy access to I-4 and highway 192. Live the Florida lifestyle!

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Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

Davenport Vacation Rental Just Listed

Davenport Vacation Rental Just Listed

Davenport Vacation Rental Just Listed

405 RUM RUN, DAVENPORT, FL

$247500

2bed – 2bath – 0.01 acres lot
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Located in building 34 just a short walk from the clubhouse this fully furnished, vacation rental is turn key ready. Bahama Bay is located just minutes from Disney and the shops and restaurants on 192 making it an annual favorite for many vacationers. The community features a 24 hour guard gated entrance, beautiful clubhouse and recreation center with a large community pool and hot tub, fitness facility, tennis courts, a gift shop, an internet coffee shop, a game room, a sauna/steam room, massage treatments, business center, pool bar/grill, separate kiddie pool and a beach with fishing dock onto the lake – everything you need for the perfect vacation home. Located on the second floor this end unit has no neighbors above offering penthouse living without the price!! A fully equipped kitchen with plenty of cabinet space overlooks the open living and dining room and screened in rear patio offering plenty of space to relax when not in the theme parks. The master bedroom with ensuite benefits from sliding patio doors leading on to a second screened in porch offering views over the mature gardens. The second bedroom located towards the front of the unit offers a double bed and a single bed providing additional sleeping accommodation. Onsite management already in place and bookings will transfer with the sale of the property assuming management is retained delivering immediate rental income for its new owner.

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agent
RE/MAX HERITAGE
RE/MAX HERITAGE
863-424-2309
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Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

Recently listed in the Polo Park Community

Recently listed in the Polo Park Community

Recently listed in the Polo Park Community

413 NESBITT PARK AVENUE, DAVENPORT, FL

Just Listed

$ Click for current price
2 BEDROOMS | 2 full baths BATHROOMS | 1026 SqFt

Looking for a well maintained home with lots of community amenities and activities? Then read on…..This wellmaintained 2 bedroom / 2 bathroom property is tastefully furnished and has been lovingly maintained by the owners.This open plan property has been designed for maximum efficiency and feels bigger than it is. Some of the recentupdates include newer roof, AC, new carpets, water softener, etc. This home benefits from solar panels which have been paid off by theseller! The current owners pay approx $50 per month for electricity! Overlooking the front is the Florida room withsliding windows enabling you to expand your living space or simply enjoy the benefits of a beautiful Florida Room. Thelarge carport and long driveway offer ample parking for you and any guests. Sitting on a good sized lot, this home offerslots of potential for a gardening enthusiast looking for a good sized yard. The property also benefits from a spaciousshed which also houses the washer and dryer with plenty of room to store your golf cart, bicycles and more. Ideallysituated within the community between both the clubhouses and amenities which include community pool, horseshoe,tennis courts, golf course (not included in monthly fees), fitness center, etc. Located off highway 27, the locationprovides easy access to grocery stores, restaurants, medical facilities as well as being minutes away from highway 192,I4, and the theme parks. Time to enjoy the Florida Lifestyle. Call today, you won’t be disappointed.

Multi-Generational Davenport Property Just Listed

Multi-Generational Davenport Property Just Listed

Multi-Generational Davenport Property Just Listed

2146 Camden Loop, Davenport, FL

$564900

5bed – 4bath – 5662.8 acres lot
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Be the envy of your friends! This 5-bed, 3.5 bath multi-generational property with paved drive and tandem 3 car garage. Whether you are looking for an in-law suite, private home office or media room then this home is for you! Enjoy watching the world go by? You will love the covered front porch. The ground floor multi-gen suite can be accessed via it’s own external door or internal door. This well-designed suite has beautiful yet practical gray plank tiles throughout except the bedroom which has gray carpeting. It benefits from well-proportioned living space incorporating a living room and café area including kitchenette with refrigerator, microwave and laundry closet with stacked washer/dryer. Full bathroom and good sized bedroom and walk-in closet complete this self-contained multi-gen suite. The gray plank tiles continue throughout the ground floor of the main home. As you enter the front door into the foyer, you are drawn towards the expansive great room and dining room. Multi-slide patio doors offer lots of natural light and provides access to the screened covered porch overlooking the pond. The modern kitchen has lots of storage with an abundance of base and wall cabinets plus pantry. Additional storage is also available in the cubby space beneath the stairs. Gray quartz counter tops and glass subway-style backsplash provides a contemporary and modern twist to this spacious kitchen. A seamless transition between the kitchen, dining and family room is achieved with the huge island that incorporates the sink and dishwasher. The upstairs is equally as impressive. The stairs lead upstairs from the foyer area and features decorative railing which opens up to the loft area to the right of the stairs. Guest bedroom 2 is accessed via the loft area and overlooks the front yard. At the top of the stairs is a small corridor off which are the other two guest bedrooms; between which is the full family bathroom providing access to both guest bedrooms and anyone using the loft area. This cleverly designed home has an upstairs laundry room with linen closet and wall cabinets providing ample storage space. The owner suite is split from the other bedrooms and includes an oversized bedroom and large ensuite bathroom with large walk-in closet, twin sinks, garden tub, walk-in shower and toilet closet. This smart home benefits from many smart enabled light switches, wifi enabled thermostat and well as a ring doorbell. This energy efficient home also has solar panels. This stunning home is located in Providence, one of central Florida’s premier golf courses designed by renowned golf course architect, Mike Dasher. Other features including clubhouse with bar and restaurant, large lap pool, resort style pool complete with slides and plenty of space to relax as well as well-equipped gymnasium. Outdoor activities include tennis, cycling, jogging or walking. There’s something for everyone, even the family dog can spend time with doggie friends at the dog park. Located within minutes of Championsgate and I4. You’ve found your personal oasis! Are you ready to live the Florida lifestyle!!!!

Follow This Home

agent
RE/MAX HERITAGE
RE/MAX HERITAGE
863-424-2309
Contact Me

Useful Links
Davenport Homes For Sale
Clermont Homes For Sale
Free Home Values
Search All Homes For Sale

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.