When is it Time to Sell a Rental Property?

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Selling your Rental Property

Investing in rental properties can be a complex game, and at Americas Housing Alliance, we’re here to guide you along the tougher parts of the process. We can assist with everything from turnkey rental property management to maintenance issues.

Another of the biggest concerns for many people in this industry: When is the right time to sell an investment rental property? There are a few specific situations where selling can be beneficial. Here are a few.

Depreciation Tax Deduction

For most property types, you as an owner will receive tax benefits in the form of a depreciation tax reduction. This is to account for natural wear and tear which may cause depreciation of property value over time, but it also runs out at a certain point. This point will be different across different cases, so ask your accountant if you’re wondering when this is. In many cases, you can flip the property into a new rental unit, and depreciation tax will apply again.

Twelfth Year

A lot of the time, 12 years of property ownership is around the time where selling begins to make sense. This is when you’ve often built enough equity in the property to consider selling, as long as the market is favorable. The professionals at Americas Housing Alliance can help you with a market analysis to see if it’s the right time for you.

1031 Tax Code

This is a code which states, generally, that an owner can sell one property in exchange for a securitized piece of property in return. Basically, it states that you can roll profits over from one property into another. Ask your accountant if you may qualify for applying this code, and no capital gains tax will be imposed on your profits.


One factor to try not to include in this process is any sentimentality. Maybe a property has a personal meaning to you, which might influence you not to sell at an opportune time. On the flip side, maybe a different property holds that value and becomes available, convincing you to make a bad selling decision to attempt to purchase it. This is up to you, of course, but if your only goal is maximizing profits, emotion needs to be checked at the door.

Want to learn more about investment rental properties? The brokers at Americas Housing Alliance are standing by.