Like most industries, investment real estate struggled during the COVID-19 pandemic. Strong economic and job growth in 2022 has improved the market. Many property owners are still considering selling their properties. The Chicago real estate market favors sellers. Currently, there is a two-month waiting period for houses. World Class HomeBuyers offers some tips to help property owners save money when selling investment property.
What are the Projections for Illinois Real Estate?
Predictions for 2022 indicate a decline of 3.4% in total home sales for Illinois properties. This may cause a delay in the ability of the owner to sell a rental property. An unoccupied rental property costs the owner money. Chicago real estate can be affected by harsh winters. The property is aging, and natural deterioration is occurring. This can create the need for repairs before the property can rent or sell. The owner is responsible for these repairs and upkeep. This can get quite expensive for the property owner.
What are the Advantages of Selling Investment Property?
Real estate as a rental property can be a good investment. It can also be hard on the property owner. Illinois real estate has many laws and requirements for property owners and landlords. All property owners must familiarize themselves with these laws. Or they will need to retain an attorney to represent them. The owners must be careful to follow these laws as written. This will prevent the tenants from taking legal action against them. The property owner should also do credit checks and background checks. They need to be sure the renter is trustworthy. This is especially important if any of your personal property will be remaining in the home. You also need to require that the renter has renter’s insurance. This would cover any incidents or thefts that could occur to the renter’s belongings on the rented property.
What Are the Costs of Maintaining Investment Property?
The personal costs of owning and maintaining an investment property depend on two factors. Your ability to hire others to do most of the work for you, or your willingness to commit to doing it yourself.
If you are financially able:
- Hire maintenance staff to handle repairs and upkeep,
- Hire a professional rental agency to perform marketing and find new tenants,
- Cover holding costs (in the time between tenants),
- Pay property taxes and assessments,
- Retain a real estate attorney for any legal matters that can come up:
- Performing background checks
- Credit searches
- Navigating tenant disputes
- Beginning the eviction process on a sound footing
- Understanding security deposit laws
- Fair market rents
- Other relevant rental laws
If you plan to do the repairs and maintenance yourself:
- Cover holding costs (in the time between tenants)
- Perform background checks and credit searches
- Property taxes and assessments
- Know all applicable laws and legislation
- Guarantee the structural integrity of the building
- Floors, walls, stairwells, porches, windows, elevators, and ceilings must be kept working properly
- Maintain bathtubs, showers, and sinks
- Furnish hot and cold running water
- Supply heat in the winter
- Exterminate as necessary to prevent infestation by rodents, vermin, and bedbugs
- Supply locks and deadbolts
- Repair all appliances and equipment furnished
- Keep the premises watertight and free of leaks
- The common areas and all units of the building must be maintained
- Repair any damages between tenants
When property owners consider the advantages and disadvantages of selling investment property, World Class HomeBuyers can assist with making that decision. We specialize in Chicago real estate. Our experts can make a cash offer on the property. There are also ways to reduce capital gains taxes by reinvesting or using a 1031 exchange. Contact us at 708-480-1439 or World Class HomeBuyers Quote to get additional information.