The turnover is the real decision
Landlords rarely sell because of the market. They sell because a tenant is leaving and the next step is several weeks of vacancy followed by a make-ready they have been deferring for years — flooring, paint, appliances, and the HVAC system that limped through last summer.
This calculator puts a number on that: how many months of net cash flow it takes to earn back the cost of the next turnover. For a lot of owners the answer is most of a year, and seeing it settles the question.
Costs that have moved against landlords
- Insurance premiums have risen sharply, particularly in Florida and along the Gulf Coast.
- Property tax assessments follow rising values, and a rental generally does not get the homestead caps that protect an owner-occupier.
- Make-ready costs have climbed with materials and labour.
- Management fees, turnover fees, and leasing commissions come off the top.
- Deferred capital items — roof, HVAC, sewer line — arrive whether or not the rent covers them.
You can sell without a vacancy
In every state we buy in, a sale does not end a lease. The buyer takes the property subject to the tenancy and the security deposit transfers to the new owner. So an occupied rental can be sold mid-lease, with no eviction, no vacancy, and no make-ready.
That is the part that changes the arithmetic most: the alternative to holding is not a vacant, renovated, listed house. It is a sale of the property exactly as it stands today.
Before you sign anything, talk to a CPA
Selling a rental triggers depreciation recapture as well as capital gains at the federal level, and owners who budgeted only for capital gains are often surprised. If a 1031 exchange is part of the plan, the qualified intermediary must be in place before closing — it cannot be arranged afterwards.
Texas and Florida have no state income tax; Georgia and North Carolina do. The sequence matters, and it is cheaper to ask first.
Frequently asked questions
Can I sell a rental with tenants in place?
Yes. The lease and the security deposit transfer to the buyer at closing and the tenancy continues.
Should I renovate before selling a rental?
Usually not, if you are selling to a cash buyer. The make-ready is money spent before any proceeds arrive, and this calculator shows how long it takes to earn back from rent.
What if my tenant is not paying?
You can still sell. Share the ledger and the status of any notice or eviction so the offer reflects the real situation.
Will I owe tax on the sale?
Federally, likely both capital gains and depreciation recapture. State treatment varies — Texas and Florida have no state income tax, Georgia and North Carolina do. Ask a CPA.