If you own rental property in Oklahoma City, now just might be the perfect time to sell. Inventory is low and demand from investors is strong, and looking at the real estate market stats for Oklahoma City it’s easy to understand why:
- Population, median household incomes, and property values are all on the rise in Oklahoma City (Data USA)
- Home values in Oklahoma City have increased by about 50% of the last eight years, with sellers seizing the opportunity to sell and turn equity into cash (Zillow)
- Rents in Metropolitan Oklahoma City are rising year-over-year, a trend that every real estate buyer loves to see (RENTCafé)
Oklahoma City has all of the characteristics of a seller’s market, so it won’t be a surprise if you get multiple offers when you list your property for sale. However, before you go to market, it’s important to understand all of the options for selling your rental property in the greater Oklahoma City area if you want a fast sale at a fair price.
Your Options for Selling Rental Property in Oklahoma City
Selling a rental property occupied by a tenant has its pros and cons, which is one reason why some owners try to get the tenant to leave before the lease is up. But before you do, make sure to think things through and research two important things:
- Read your current lease to understand what your rights and the tenant’s rights are. Some leases allow you to terminate the agreement early with enough notice. Other times, you may need to threaten the tenant with eviction if they’ve violated a lease term – such as paying the rent late – and don’t agree to leave.
- Review the landlord-tenant laws in Oklahoma to make sure that you do everything by the book. Some states are landlord-friendly with laws that favor real estate investors. In other states, the law is on the side of the tenant.
After you know what you can and can’t legally do, the next step is to decide on your best options for selling your rental property in Oklahoma City:
1. Sell to your tenant
Instead of jumping through all of the hoops of listing your property on the MLS, approach your tenant and see if they’re interested in buying. If they’ve been renting for a while, they just might say yes.
When you sell to your tenant, make sure they get preapproved for a mortgage right away and be sure to use the right real estate contract for selling a home in Oklahoma to make sure that both you and your tenant-buyer are protected.
2. Pay the tenant to leave early
If your tenant doesn’t want to buy, you may be able to convince them to leave before the lease is up by offering a cash for keys incentive.
Eventually they will need to move anyway, so agreeing to pay for their moving expenses or helping with the security deposit for their new place can get the tenant out and give you time to make any needed repairs for listing your vacant property for sale.
3. Wait for the lease to expire
Sometimes you may need to wait for the lease to expire before selling your property. Of course, you can put your rental property on the market for sale a few months before the lease comes to an end.
Always give your tenant proper notice before showings, and remind them they need to leave the property in good condition when they do move out if they expect to get all of their security deposit back.
4. Sell with the tenant in place
Many property owners who sell a rental property in Oklahoma City use an online listing platform like Roofstock. It’s easy to sell your house with a tenant in place, and you can save the time and expense of trying to convince the tenant to leave:
- Keep collecting your rental income until the day your deal closes
- Reach a global network of qualified real estate investors on Roofstock instead of limiting yourself to the local MLS
- Pay a lower real estate commission (3% versus the typical 5% - 6%) and keep more of your hard-earned money
- Research the Roofstock Marketplace to see what other rental properties in Oklahoma City are selling for and stay ahead of the competition
What You Should Do Before Selling Rental Property
If you want to sell your rental property in Oklahoma City fast and for top dollar, there are a few things to do before going to market:
- Compile a buyer package of important documents including a copy of the lease and tenant rent roll, financial reports such as a P&L, a list of vendors and maintenance history, and a summary of all capital repairs and improvements done in the last few years.
- Buyers like to purchase property problem-free, so have a professional property inspection done and make any needed repairs ahead of time so that the buyer doesn’t try to lowball your asking price.
- Explain to your tenants the property is for sale, how showings will be handled, and the process for transferring their existing lease and security deposit to the new owner.
- Calculate your potential capital gains tax liability, and explore the possibility of using a 1031 tax deferred exchange to delay paying the tax by buying a replacement investment property anywhere in the U.S.
How to Price Your Investment Property for Sale in Oklahoma City
Pricing your rental property for sale in OKC is a mixture of art and science. You want to have a competitive asking price per square foot, but you also want to tout the financial performance of your property to get a fast closing at a great price:
- Calculate the cap rate by dividing the net operating income by the asking price, then compare that ratio to similar properties for sale in your area to make sure you’re competitively priced.
- Use cash-on-cash return to help potential buyers understand how much money their down payment will generate when they finance their purchase at today’s low interest rates.
- Determine what the ARV (after repair value) of your property is if you can’t afford to make all of the needed repairs to help buyers understand the instant equity they’ll receive once all of the maintenance is done.
At the end of the day, choosing the right option for selling your rental property in Oklahoma City will help lead to a fast sale at a great price. To get started, you can get a free price estimate and consultation for your property in Oklahoma City here: https://www.roofstock.com/seller-services