Before you sell your rental, keep these points in mind.
With such a competitive sales market and prices on the rise here in northeast Florida, some investors have thought about selling their rentals and cashing out on their investments. If you’re thinking of doing the same thing, here are four points to remember:
1. Be prepared to make renovations. Anytime you sell a rental property, there could be some work that needs to be done, whether that means carpet, paint, etc. Be prepared for those expenses.
2. Depending on how you acquired the property, you may receive tax benefits and/or pay tax penalties. Check with your accountant to see which applies to you.
3. To sell or not to sell with a tenant still in the property? Depending on your situation, this can severely affect your bottom line.
4. Can you use the security deposit for upgrades? The answer is simple: You can only use the security deposit for things that are beyond the normal wear and tear. That may sound a little subjective, but you have to remind yourself to be fair in these situations.
If you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’d love to hear from you.
