Selling a rental property can be difficult, especially in a market marked with economic hardships, inflation, and trends that are favorable to buyers. With competition from other sellers and investors, it’s important to use the right tactics to get the most money for your property while also finding a buyer who will take good care of it. 

In this post, we’ll go over four effective tactics you can use to sell your rental property quickly and at its highest value:

1. Know your target market.

Before you start marketing your rental property, it’s important to understand who your target market is. 

Are you trying to sell to another investor? An owner-occupant? A first-time homebuyer? Each type of buyer has different needs and wants, so you’ll need to tailor your marketing and sales approach accordingly.

Here are some examples of how your sales approach may differ depending on your target market:

• Family with young children: Highlight the property’s location, schools in the area, and family-friendly features like a backyard or park nearby. 
• First-time home buyer: Emphasize the property’s affordability and any low down payment or special financing programs you’re offering. Expect these individuals to be more cautious and have more questions than other types of buyers.
• Experienced investor: Focus on the property’s income potential and any recent improvements or upgrades. Be prepared to provide financials and answer questions about the property’s past performance. The more evidence you can show to prove your claims, the better.

In fact, try to think like a Denver property management company: they won’t just list your property and wait for buyers to come to them. They’ll actively market it to their audience of qualified prospects. This way, you’re more likely to get buyers who are genuinely interested in your property management services and willing to pay a fair price for it.

2. Nail down which repairs are necessary, then execute them.

You also need to be strategic when it comes to updating your home for resale. Not every repair is worth your time and money nor attract your ideal buyer. That’s why it pays to prioritize.

Here’s a general rule of thumb: if a repair is necessary to make the property livable or safe, do it. If it’s a cosmetic update that isn’t required, you can leave it. Of course, there are always exceptions to this rule – if you’re selling in a luxury market, for example, the more special features you can offer, the better.

In general, however, The Spruce recommends starting with the following:

• Freshen up the walls with a neutral coat of paint.
• Install new closet and storage systems.
• Update the kitchen and bathrooms.
• Landscape the yard.

The above recommendations are based on the assumption that your home is in decent condition, to begin with. If it needs major repairs, you may want to consider whether it’s worth it to invest the time and money required to fix it. In some cases, it may be better to sell the property as-is to an investor who specializes in fixer-uppers.

3. Market the property creatively.

With nearly seven million homes for sale in 2021, it’s going to be an uphill battle to get buyers to notice your listing.

So while the usual tactics like posting on websites, using yard signs, and holding open houses are still important, you’ll also need to get creative in your marketing approach.

Some ideas to get you started:

• Collaborate with other local businesses to promote your listing. For example, if you’re selling a family home, partner with a nearby daycare center or family-friendly restaurant.
• Use real estate technology. This could include anything from creating a virtual tour to using drones to take aerial photos of the property.
• Tap a marketing agency. If you have the budget, consider working with a company that specializes in real estate marketing. They can apply tactics like viral marketing, search engine optimization (SEO), and targeted ad campaigns to help you reach more buyers.

4. Think outside the box on financing and sales terms.

In a buyer’s market, it’s especially important to be flexible on financing and sales terms. By being open to different financing and sales arrangements, you’ll make your property more attractive to a wider range of buyers.

For example, you may want to consider offering:

• A rent-to-own agreement
• Owner financing
• A lease with an option to buy
• A shorter-than-usual escrow period

You may also want to be flexible on price. In a buyer’s market, it’s not uncommon for sellers to have to lower their asking price multiple times before finding a match. If you’re not willing to budge on price, you may end up sitting on your property for months – or even years – until the market improves.

The Bottom Line

If you’re selling a rental property in today’s market, you need to blend traditional and modern sales tactics to be successful. These four strategies are an excellent place to start – no matter what the market conditions are.