About Rental Properties

At a glance, having a rental property appears uncomplicated and profitable. You have tenants that pay you rent on a monthly basis and it’s a sure income stream. Many landlords would disagree. Being a landlord is a daunting job and requires a lot of hard work. Here are some of the less well-known problems of having a rental property.

  • Finding good tenants: Most landlords have horror stories they can tell about bad renters. To avoid this nightmare, you have to do your due diligence with background checks, credit checks, and rental history checks for any applicants.  You can also use a service to do this for you.  Either way, it takes time and money.
  • Legal expenses: You need to hire a lawyer to draft the contracts and sometimes to settle a dispute between you and your tenant, and lawyers are not cheap.
  • Insurance costs are higher: As a landlord, you legally become an investor which makes your insurance costs higher than those of an ordinary homeowner.
  • Higher taxes and maintenance: Your property now becomes an investment property with higher taxes. You are also responsible for the repair, maintenance and management of the property.

With all these problems, even the toughest, most seasoned landlords sometimes want to give up and start looking for a way out.

Options For Selling A Rental Property

 

Selling a rental or investment property is more complicated than selling your own home. The complexities of taxation can be a major deterrent for those wanting to sell. The capital gains tax will hit you big time.

To avoid paying capital gains tax, you can go the path of 1031 exchanges where you’ll use the proceeds of the sale of your rental property and invest in another “like-kind”. However, the exchange must be closed within 180 days. It is highly recommended that you consult an expert should you choose this option.

Another way of avoiding the capital gains tax is to convert your rental property into your own home. While there are some tax benefits to being a homeowner, the caveat here is that you need to establish ownership for 5 years and live on the property for 2 years before enjoying those benefits.

If you need to sell the property now, then this is not a viable option for you.

Sell Your Rental Property with Less Hassle!

We’ll buy it! We’ll rid you of the burden of having a rental property and its problems. So if you are searching for a fuss-free, quick sale of your rental property, call us today! We’ll ask certain information from you so we can make an offer that is acceptable to both of us. We can even pay you in cash within 7 days. It’s that simple! It’s that fast at Helpful Realty!

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