Should I Sell My Rental Property During the Pandemic?
The snowball effect of the pandemic raises the question of whether to make some business moves or to stall for time. If you’re an investor in the real estate industry, you may be wondering if it’s reasonable to sell a rental property during a pandemic? The answer is yes!
Though the time we live in now is unprecedented, and developments that hinge on the effect of the pandemic can positively or negatively affect any industry, there is significant growth in real estate. In the period spanning 2019 through 2020, many regions have experienced an increase in home property and rental property purchase. Although this is not an indication that this is the best time to sell a property, yet it’s proof that there’s still demand. Keep in mind, however, that due to varying situations across the country it’s not likely to benefit from a spike in the property value. Rather projections are towards a reduced price tag due to possible mass unemployment. Note that these are just projections, yet it’s best to check the pricing in your vicinity to ascertain the possibility of a successful and profitable sale.
Smart Note: In the year 2020, home value increased by 7.5%, and about a 10.4% increase is projected over the next 12 months. The growth is surprising, and the increase although all round is more evident in the purchase of large properties with 4 bedrooms or more.
Since it’s apparent that a rental property sale is feasible during the pandemic, the manner of sale has changed a bit. A few changes include these key points:
Virtual Walk-Through
One of the new modes of property sale is the use of virtual walkthroughs. This method is employed to rule out the possibility of spreading the virus and to also comply with the social distancing regulation. A virtual walk is one of the common modes used in a rental home sale in Minnesota. A virtual walkthrough is especially important if it’s a rental property — since a physical walkthrough may cause inconveniences for tenants and also put them at risk.
Comply with Local Regulations
In an event of a sale, it’s best to seek out the assistance of a rental property sales expert to get acquainted with the latest regulations for property sales. Unless you are aware of these regulations, do not hesitate to contact an expert.
Inform Your Tenants
Despite the current situation and the mode of selling, respectfully inform your tenants about the house sale. Of course, the sale may not affect them since rental properties with existing occupants are simply just a switch of ownership, there aren’t literal handing over of keys or packing in. The new owner gets the ownership and even sees renters as a perk rather than looking for tenants. While there isn’t a physical assessment of the property, you’ll still ask for permission to do a virtual recording of the property for the walkthrough. Therefore, the renters should be informed and in advance.
In conclusion, all other conventional property sale procedures must be followed to have a successful sale.