Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Wednesday, October 22, 2025
If you own a rental property and are thinking about selling it, you might wonder whether the timing of selling it matters. Can we sell it anytime, or are some times better than others?
I often think about this question in terms of how the next buyer is likely to use the property -- which can make a big difference in deciding when to sell.
Let's look at two common scenarios:
1. If It's Almost Certainly Going to Remain a Rental
If your property is a student rental, a multi-family property, or is in a neighborhood that is primarily investment properties, then chances are, your buyer is going to be another investor.
In this case, it's usually best to sell shortly after you've signed a new lease -- ideally, at a market rental rate. This timing allows you to show the best possible income potential to investor buyers and to offer a stable transition for the new owner with many months to go on the current leases.
Selling right after a lease renewal -- especially at current market rates -- can often be more compelling than selling mid-lease or with uncertain lease terms on the horizon.
2. If It Might Appeal to an Owner Occupant
If your rental property could just as easily be purchased by a homeowner -- for example, a townhouse in a neighborhood where many are owner-occupied -- we will likely want to think about the timing a bit differently.
In this case, it's often better to wait until the lease is nearly up or the tenants have moved out. Why? Most owner occupants can't or won't consider a home with a tenant in place that has multiple months remaining on their lease.
Thus, if there are still 6- 10 months left on the lease, you're artificially limiting your buyer pool to only investor buyers/
Listing the property vacant -- or nearly vacant -- opens the door to both owner occupants and investors, giving you the widest possible audience and the potential for the best offer.
Let's Talk Timing
If you're thinking about selling your rental property later this year in 2025 (if so, now's the time to start planning!) or in early 2026, let's take a look at the lease terms, market conditions, and likely buyer pool. From there, we can determine the best window to sell for a smooth transaction and the strongest return.
I often think about this question in terms of how the next buyer is likely to use the property -- which can make a big difference in deciding when to sell.
Let's look at two common scenarios:
1. If It's Almost Certainly Going to Remain a Rental
If your property is a student rental, a multi-family property, or is in a neighborhood that is primarily investment properties, then chances are, your buyer is going to be another investor.
In this case, it's usually best to sell shortly after you've signed a new lease -- ideally, at a market rental rate. This timing allows you to show the best possible income potential to investor buyers and to offer a stable transition for the new owner with many months to go on the current leases.
Selling right after a lease renewal -- especially at current market rates -- can often be more compelling than selling mid-lease or with uncertain lease terms on the horizon.
2. If It Might Appeal to an Owner Occupant
If your rental property could just as easily be purchased by a homeowner -- for example, a townhouse in a neighborhood where many are owner-occupied -- we will likely want to think about the timing a bit differently.
In this case, it's often better to wait until the lease is nearly up or the tenants have moved out. Why? Most owner occupants can't or won't consider a home with a tenant in place that has multiple months remaining on their lease.
Thus, if there are still 6- 10 months left on the lease, you're artificially limiting your buyer pool to only investor buyers/
Listing the property vacant -- or nearly vacant -- opens the door to both owner occupants and investors, giving you the widest possible audience and the potential for the best offer.
Let's Talk Timing
If you're thinking about selling your rental property later this year in 2025 (if so, now's the time to start planning!) or in early 2026, let's take a look at the lease terms, market conditions, and likely buyer pool. From there, we can determine the best window to sell for a smooth transaction and the strongest return.
