I Want to Sell My Rental Home: Everything You Need to Know

You may be tired of playing the landlord. You may need the extra money. You may finally want to retire and enjoy your own beach home. Whatever the reason, you've decided to sell your rental home. Here are a few things you should know before you sign the paperwork.

When you sell a rental property, you can expect to pay taxes on any capital gains that you receive. The federal government usually takes anywhere from 15% to 20% of that amount. You may also have to pay state taxes on your capital gains. Those two taxes combined can take a sizable portion of your sale.

One method you may be able to use to avoid this is to file for 1031. This is a policy that allows you to defer your taxes if you intend to use the money you received from the sale to invest in another property.

There are a few stipulations that you need to meet to file for 1031, however, it could technically be done without limit. You just need to have owned the property for at least two years. You can continue to defer your taxes and enjoy the bulk of your sales without consequence.

If you have tenants that live at your property long-term, then you need to give them written notice about your intention to sell the property. You'll want to give them plenty of time to get their affairs in order. It can sometimes take a few months before they're able to find another rental or even a home for themselves. You'll need to give them plenty of time if you want to avoid kicking them out.

You'll also want to remind them of their final day. All of their belongings should be removed by that day. If they're not, then you can start the eviction process.

Ocean City houses are beautiful. If you used yours as a rental, then it may need a little tender love and care before you list it. To attract people to your home, you should consider hiring a professional stager for your home or learn to stage yourself. A staged home allows it to look its best and attract people to your home.

You may have a lot of questions about selling Ocean City NJ real estate. Berger Realty can make the process easier. Give us a call today to get started.