The biggest difference when selling a house to an investor is keeping in mind you are not selling to a consumer but to another business. You can paint a house in designer colours and escalate the price it can command, just because the house is aesthetically charming to buyers who plan to live there. But that all alters if the buyer is an investor as they are not looking at the appeal of the house, rather that they are looking at how much money they can make out of it. Generally the figures mean a lot more to them than the house itself.
- As an investor there are many ways you can raise rental income and below are a few ideas.Do your research - look around at rental houses that are similar to yours and find out how much rent is being levied. If you're asking for less than the going fees, you can increase rents and still keep your tenants.
- It may need extra money putting into the property to start off with, but look at finishing the basement; you may even be able to rent it out as a separate unit.
- Find out what your tenants want out of the property and ask around to find out what tenants ask for in general. Having laundry machines already in place or a downstairs bathroom could increase the amount tenants are willing to pay out.
- Can you update the insulation to decrease the heating costs or switch to a high-efficiency boiler that will save on heating expenses?
If you have made the decision to sell, and have an understanding of your income property's financial picture, it's time to put together a unique marketing plan that will present your investment house or condo to the buying public in the best possible light.
Here are the final chores to cross off your to-do list before your Calgary real estate income building is ready to be centre stage on the open market:
- If you have rent payers in the property already, make sure you take the time to chat to them about what is going on. It is very rude and unfair on current tenants if you don't.
- Take the opportunity to listen to your tenants concerns, after all they are going to be worried that they will loose their home. One of the main considerations is informing them of the closing date you are looking at, so they know how much time they have if they want to or have to find new accommodation.
- Even though property investors are more bothered about the financial implications of the property, this doesn't mean you don't need to stage it correctly; the property still needs to look its best.