Tips and tactics for maximizing the value when selling your rental property
Whether you've owned an investment property for decades or are a relative newbie to life as a landlord, the thought of selling must never be too far from your mind. It's certainly something you'll want to be aware of as opportunities to take advantage of (sometimes sooner than anticipated) may present themselves.
If you're on the look-out for invaluable professional advice regarding the sale of your investment rental property, be sure to connect with The Julie Kinnear Team of Keller Williams Neighbourhood Realty. Based in the heart of Toronto, The JKT will not only help you with the SALE of your property, they will also help ensure you maximize the full potential from your income property.
And thanks to Toronto's extremely hot real estate market, there's never been a better time to consider selling your rental investment property as the demand for good rental properties is at an all time high. Which is why Julie Kinnear, Team Leader of The JKT, suggests that owners for whom an exit was always part of the plan might want to strike while the iron's hot.
Downtown Toronto by Graham
"We've seen a huge increase in demand for good income properties in Toronto," according to Julie. "There's plenty of employment and business opportunities, the universities and colleges are full, immigration is rising as more and more people are being drawn to Toronto for the lifestyle. Toronto's a sought after world-class city, and we're continuing to see that reflected in real estate prices. For example, a Parkdale triplex recently sold for $200,000 over its 2013 purchase price and a High Park property divided into five units sold in 2015 for $470,000 above its 2013 sale price without major renovations. Divestment of condo rental property is going through its own boom in a variety of price ranges, especially prime locations, lofts and unique spaces."
Preparing for a sale
According to The JKT, it's important that owners of rental properties consider a potential sale when markets are high, as there's never any guarantee that demand will remain high and markets could peak without warning. And, suggests Julie, this applies to those who've been owners for a long time and for those new to the market.
"Sometimes things just align in such a way that makes the proposition of a sale worth considering." she says.
Before putting your rental property up for sale, Julie suggests owners give careful thought to the following important areas:
- Find the Right Real Estate Professional: The Julie Kinnear Team has a proven track record of selling and buying income properties. The JKT will provide a dynamic Marketing Plan and will keep you up to date with recent sales and current offerings as comparables. They ensure that your property is exposed to the maximum number of potential purchasers.
- Sell Your Tenants: Having good long-term tenants can be a definite plus when it comes time to sell. Be sure your tenants are aware of the pending sale, and work closely with your tenants to create a showing schedule that works for all parties including them. (And it never hurts to personally thank and appreciate them whenever they're asked to vacate for a showing).
- New Leases: It's important to know that every purchaser's needs will be different, and they may have plans for refurbishments, or even turning the property back into a single family dwelling. Just in case, if leases are coming up for renewal close to the time of sale (or soon after), try to negotiate shorter or month-to-month lease agreements with your tenants.
To learn more about how to sell your investment property, contact The Julie Kinnear Team for a free consultation and advice on navigating Toronto's hot real estate income property market.