- Updated for 2027
- Free for homeowners
- Any condition
- No obligation
- You choose who to talk to
Selling a rental property when you are ready to step back.
Being a landlord can wear on anyone. Here is how to think through selling a rental, keeping it, or something in between.
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Landlords
Understand your situation first.
Many landlords reach a point where the calls, repairs and turnover feel like more than the rent is worth. Others want to free up money, simplify their lives or move on to something new. Selling a rental is a bit different from selling a home you live in. Taxes work differently, tenants may be involved, and the property may have wear that built up over years of renting. Each of these can affect your timing and your choices.
This page covers the main things to think about before selling a rental property, including taxes, leases and condition. It also lays out realistic options, from listing with an agent to keeping the property with outside help. If you want to hear from investors who buy rentals, Doorbloom lets you describe the property for free and choose who, if anyone, to talk to. A tax professional and local attorney can help with the parts that depend on your situation.
What to know
Things to think through.
Taxes work differently for rentals
Gain on the sale of a rental property is generally taxable, and the home sale exclusion for a main home usually does not apply to a pure rental. Depreciation you deducted, or could have deducted, lowers your basis and can increase your taxable gain. Part of the gain tied to depreciation may be taxed differently, so a tax professional can help you estimate the result before you sell.
A like-kind exchange may be an option
If you want to stay invested in real estate, a Section 1031 like-kind exchange can let you defer gain by buying other investment real property. The IRS sets strict deadlines for identifying and acquiring the replacement property, and a qualified intermediary is usually involved. This needs planning before the sale, so talk to a tax advisor early.
Existing tenants affect timing
A lease usually stays in effect when a property is sold, and notice rules for ending a tenancy vary by state and city. Selling with tenants in place often appeals to investors, while selling vacant appeals to people who want to live there. Your lease terms will shape which path is practical.
Years of wear add up
Rentals often have deferred maintenance from tenant turnover and aging systems. Some sellers update before listing, while others sell in current condition to a buyer who plans to renovate. Either way, disclosure rules in your state still apply.
Records make the sale smoother
Buyers, especially investors, will want leases, rent history, deposit records and a list of expenses and repairs. Your tax professional will need purchase records, improvement costs and depreciation history. Pulling these together early saves time later.
Your options
There is more than one path.
List with an agent
Listing puts the property in front of both investors and people who want to live there, which can help you find the strongest buyer. It usually takes more preparation, showings and coordination with tenants. Agent fees and any repairs requested after inspection are part of the cost.
Keep it and hire a property manager
If the day-to-day work is the problem rather than owning the property, a property manager can take over tenant calls, rent collection and repairs. You keep the asset and its income, minus the manager's fee. This can also buy time to plan a sale or exchange more carefully.
Explore offers from investors and professionals
Some investors look for rentals, including ones with tenants in place or deferred maintenance. Through a platform like Doorbloom, you can share details about the property, hear from interested professionals and choose whether to talk to anyone. It is worth comparing what they propose with what a listing could bring.
How it works
Three clear steps.
- 1
Tell us about your home
Share the address, condition and your timeline. It takes about a minute, and we only ask what is needed for the next step.
- 2
Review who is interested
Real estate investors and professionals review your home. You see who they are before anyone gets your contact details.
- 3
Choose your next step
Talk to the people you want, compare your options, or decide not to sell. There is no pressure and no obligation.
Practical next steps
Where to start.
- 1Talk to a tax professional firstAsk them to estimate your gain, the effect of depreciation and whether an exchange makes sense. This is easier to plan before you agree to a sale.
- 2Gather your property recordsCollect the purchase documents, improvement receipts, depreciation schedules, leases and rent history. Buyers and advisors will both ask for them.
- 3Review your leasesCheck end dates, renewal terms and any clause about a sale. Then confirm your state's notice rules before planning a timeline.
- 4Decide on occupied or vacantThink about whether you want to sell with tenants in place or after they move. The choice shapes who is likely to buy and when.
- 5Compare more than one pathGet a sense of what listing might look like and, if you like, hear from investors as well. Side-by-side options make the decision clearer.
Questions
Your questions, answered.
Do I pay taxes when I sell a rental property?
Generally, gain on the sale of a rental is taxable. Depreciation lowers your basis, which can increase the gain, and part of that gain may be taxed differently. A tax professional can estimate your situation, and IRS Publication 527 points to the detailed rules.
What is a 1031 exchange?
It is a way to defer gain by exchanging investment or business real property for other like-kind real property. The IRS sets deadlines for identifying and acquiring the replacement property, and a qualified intermediary usually holds the sale proceeds. It must be set up before the sale, so talk to a tax advisor early.
Can I sell my rental property with tenants in it?
Usually yes. The lease generally stays in effect, and the buyer becomes the new landlord. State and local rules on notice, showings and deposits vary, so it helps to check them first.
I used to live in the rental. Does that change the taxes?
It can. The home sale exclusion has ownership and use tests, and rules for homes that were also rented are more complex. IRS Topic 701 and Publication 523 explain the basics, and a tax professional can apply them to your dates.
How does Doorbloom work for selling a rental?
You describe the property, its condition and any tenants for free, with no obligation. Independent investors and professionals review it, and you decide whether to talk to any of them. Doorbloom does not buy property or make offers, and nothing is binding until you sign a purchase agreement.
Is Doorbloom buying my house?
No. Doorbloom is a platform that connects US homeowners with real estate investors and professionals. Any offer comes from them, and nothing is binding until you sign a purchase agreement.
What does it cost?
Creating an account and telling us about your home is free for homeowners.
Who sees my information?
Professionals can see details about your home. Your name, email and phone number are only shared with people you choose to connect with.
Helpful resources
Independent help and information.
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