Maximizing Profit in a Rental Property Sale: Expert Tips

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When looking to sell a rental property, investors must weigh a variety of factors in order to maximize returns and minimize potential tax liabilities. In this comprehensive guide, we will delve into the intricacies of calculating gains on the sale of rental properties, capital gains tax considerations, benefits of 1031 tax-deferred exchanges, advantages of professional real estate services, and additional costs involved when selling a rental property.

Our detailed analysis will provide you with valuable insights on determining your property’s cost basis and estimating a realistic sale price. Additionally, we’ll discuss various strategies for minimizing capital gains taxes through loss harvesting techniques and installment payments from buyers.

Furthermore, learn about the requirements for qualifying properties under Section 1031 exchanges and time limits associated with completing a successful exchange. We’ll also weigh the potential risks and benefits involved in these transactions.

To ensure success in your rental property sale journey, understanding the importance of selecting an experienced agent familiar with local market conditions is crucial. Discover marketing strategies employed by professionals to attract qualified buyers as well as negotiation tips provided by agents aimed at securing favorable terms.

Last but not least, be prepared for common closing costs when selling a rental property along with typical real estate agent commission rates. Evaluating necessary repairs or upgrades before listing is another essential aspect covered within our informative guide.

Table of Contents:

Calculating Gain on Sale of Rental Property

Figuring out the gain from selling your rental property necessitates a computation of its sale’s profit. This involves figuring out the property’s cost basis, estimating an accurate sale price, and factoring in any improvements or depreciation. Let’s explore each of these components in detail.

Determining Your Rental Property’s Cost Basis

The cost basis is essentially what you paid for the property plus any additional expenses incurred during its acquisition (e.g., closing costs). To accurately calculate this figure, gather all relevant documents such as purchase agreements and settlement statements from when you initially bought the property.

Estimating a Realistic Sale Price for Your Rental Property

An accurate sale price estimate is essential to calculating your potential gains. Research recent sales of similar properties in your area by using online resources like Zillow, or consult with a local real estate professional familiar with the Fairfax County Virginia real estate market conditions. Additionally, consider factors that could impact value such as neighborhood amenities and current economic trends.

Factoring In Improvements and Depreciation

  • Improvements: Any significant upgrades made to the rental property can increase its cost basis – ultimately reducing taxable gains upon sale. Keep detailed records of improvement-related expenses throughout ownership.
  • Depreciation: As a landlord, you’ve likely claimed depreciation deductions on your tax returns over time. When selling your rental property, these deductions will need to be “recaptured,” meaning they’ll be added back to your taxable income. To determine the amount of depreciation recapture, consult with a tax professional or refer to IRS Publication 527.

Once you’ve gathered all necessary information, calculate your gain on sale by subtracting the adjusted cost basis (original cost basis plus improvements minus depreciation) from the estimated sale price.

For example, if you purchased a rental property in Fairfax County Virginia for $300,000, made $50,000 worth of improvements, and claimed $30,000 in depreciation deductions, your adjusted cost basis would be $320,000. If you estimate that you can sell the property for $420,000, your potential gain on sale would be $100,000.

Capital Gains Tax Considerations

Taxes play a significant role in determining the profitability of your real estate deal. Be aware of capital gains tax implications when selling a rental property and explore strategies such as tax-loss harvesting or allowing buyers to pay in installments to minimize taxes owed.

Understanding Capital Gains Tax Rates for Real Estate Transactions

When you sell a rental property, any profit made from the sale is subject to capital gains tax. The taxation rate you’ll be subject to is contingent on your income and the length of time that the real estate has been owned. For properties held longer than one year, long-term capital gains rates apply, ranging from 0% to 20%. If held for less than a year, short-term capital gains are taxed at ordinary income rates.

Utilizing Tax-Loss Harvesting Strategies

Tax-loss harvesting is an effective strategy that can help offset some of your taxable gain by realizing losses on other investments within the same calendar year. This involves selling underperforming assets and using those losses against realized profits from successful investments like rental properties. By doing so, you may reduce overall taxable income and lower potential capital gains taxes due upon sale.

Allowing Installment Payments from Buyers

If feasible, consider offering installment payments as an option for buyers purchasing your rental property. Under this arrangement – known as an installment sale agreement, part of each payment received will be considered interest while another portion will represent principal repayment. Offering installment payments may allow you to spread the capital gains tax liability over time, potentially decreasing your overall burden.

Keep in mind that offering installment payments may limit the pool of potential buyers and could result in a longer sales process. However, it can be an attractive option for sellers looking to minimize immediate tax implications while still receiving regular income from their property sale.

Tax Tips for Selling Rental Property

  • Consider selling during a year with lower taxable income to take advantage of reduced capital gains rates.
  • If possible, hold onto your rental property for at least one year before selling to qualify for long-term capital gains treatment.
  • Consult with a qualified tax professional or financial advisor familiar with real estate transactions to discuss specific strategies tailored to your situation and goals.

1031 Tax-deferred Exchange Benefits

Defer paying capital gains taxes by utilizing a 1031 exchange when selling your rental property. By replacing it with another investment property within specific timeframes, you can defer taxes while continuing to invest in real estate.

Requirements for Qualifying Properties under Section 1031 Exchanges

To qualify for a 1031 tax-deferred exchange, both the relinquished and replacement properties must be held for investment or used in a trade or business. Additionally, they should be of “like-kind,” meaning that they are similar in nature or character, regardless of their quality. For example, exchanging an apartment building for a commercial office space would typically qualify as like-kind properties.

Time Limits Associated with Completing a Successful Exchange

  • The 45-Day Identification Period: Within 45 days after closing on the sale of your original rental property (the relinquished property), you must identify up to three potential replacement properties.
  • The 180-Day Closing Period: You have up to 180 days from the date of closing on your relinquished property to close on one or more identified replacement properties successfully.

Note that failing to meet these deadlines may result in disqualification from deferring capital gains taxes through the exchange process.

Potential Risks and Benefits Involved

A successful 1031 exchange offers several benefits such as deferring capital gains tax liabilities and potentially increasing cash flow by acquiring higher-income-producing assets. However, there are also risks involved:

  1. Tight Deadlines: As mentioned earlier, the strict timeframes can be challenging to meet and may lead to a failed exchange if not managed properly.
  2. Market Fluctuations: Changes in market conditions during the exchange process could impact property values and your overall investment strategy.
  3. Finding Suitable Replacement Properties: Identifying appropriate like-kind properties within the given timeframe can prove difficult, especially in competitive markets.

To navigate these complexities successfully, consider working with an experienced Qualified Intermediary (QI), who will guide you through each step of the 1031 tax-deferred exchange process. Additionally, partnering with professional real estate services such as WJD Management, specializing in Fairfax County Virginia rental properties, ensures that you receive expert advice tailored to your unique situation.

Advantages of Professional Real Estate Services

Hiring professional real estate services can help reduce potential stress during the sales process while maximizing profits. A knowledgeable agent will assist with pricing strategy, marketing efforts, negotiation tactics, and navigating complex legal requirements – all contributing factors that could impact final proceeds from the transaction.

The Importance of Selecting an Experienced Agent Familiar with Local Market Conditions

Selecting an experienced agent who is familiar with local market conditions in Fairfax County, Virginia is crucial to ensuring a successful sale. An expert in the area will have a deep understanding of current trends and property values, allowing them to accurately price your rental property for maximum return on investment. Additionally, they can provide valuable insights into buyer preferences and neighborhood amenities that may influence your property’s desirability.

Marketing Strategies Employed by Professionals to Attract Qualified Buyers

  • Digital Marketing: Professional real estate agents utilize various digital marketing channels such as social media platforms, email campaigns, and search engine optimization (SEO) techniques to reach potential buyers online.
  • High-Quality Photos & Virtual Tours: Showcasing your rental property through high-quality photos and virtual tours allows prospective buyers to visualize themselves living in the space before scheduling an in-person visit.
  • Multichannel Advertising: Agents advertise properties across multiple platforms including print materials like flyers or brochures as well as online listing websites like Zillow or Trulia for maximum exposure.

Negotiation Tips Provided by Agents Aimed at Securing Favorable Terms

An experienced real estate agent will provide strategic guidance to secure the best terms for you. Some key negotiation tactics include:

  1. Setting a competitive asking price based on market research and property analysis.
  2. Highlighting unique features or upgrades to justify a higher sale price.
  3. Being flexible with closing dates or other contingencies to accommodate buyer preferences.

In addition to these advantages, working with professional real estate services like WJD Management, specializing in Northern Virginia property management and residential leasing, can provide expert guidance throughout the entire rental property sales process. With decades of expertise, the WJD Management team is ready to assist in selling your rental home, optimizing profits and cutting taxes.

Additional Costs Involved When Selling Rental Property

When selling a rental property, it is important to be aware of any additional costs that may impact the overall profit. These expenses include closing costs, agent commissions, and potential repairs or upgrades needed before listing the property. In this section, we’ll discuss each of these factors in detail.

Common Closing Costs to Expect When Selling a Rental Property

Closing costs are fees associated with finalizing a real estate transaction. They typically range from 1% to 5% of the sale price and may include:

  • Title search fees: A title search is conducted to ensure there are no outstanding liens or claims on the property.
  • Earnest money deposit: This is held in escrow until closing as proof of good faith by the buyer.
  • Recording fees: Charged by local government agencies for registering new ownership records.
  • Transfer taxes: Imposed by state or local governments when transferring ownership of real estate properties.

Typical Real Estate Agent Commission Rates

A significant expense when selling rental properties is paying commission to your real estate agent. Commissions usually lie somewhere between 5% and 6% of the sale price, but this may differ depending on locale or current market trends. For example, if you sell your rental property for $300,000 with a 6% commission rate, you’d pay $18,000 in agent fees alone.

Evaluating Necessary Repairs or Upgrades Before Listing

Before listing your rental property for sale, it’s crucial to assess any necessary repairs or upgrades that could improve its marketability and attract more potential buyers. Some common areas to consider include:

  • Roofing: A damaged roof can be a deal-breaker for many buyers, so ensure yours is in good condition before listing the property.
  • HVAC systems: Ensure heating and cooling systems are functioning efficiently as this is an essential factor for renters and homeowners alike.
  • Kitchen and bathroom updates: Modernizing kitchens and bathrooms can significantly increase your property’s value. Focus on cost-effective improvements like new countertops, fixtures, or fresh paint.

Taking these additional costs into account when selling a rental property will help you make informed decisions about pricing strategy while maximizing profit from the transaction. Remember that partnering with professional real estate services like WJD Management, specializing in Fairfax County Virginia rentals, can provide valuable guidance throughout the process.

FAQs in Relation to Rental Property Sale

What Do I Need to Know Before Selling an Investment Property?

Before selling an investment property, consider factors such as the cost basis, realistic sale price, improvements and depreciation, capital gains tax rates, and potential tax strategies. Additionally, be aware of closing costs and real estate agent commission rates. It’s crucial to work with a knowledgeable agent familiar with local market conditions.

What Is the 6-Year Rule for Capital Gains Tax?

The 6-year rule allows homeowners who have moved out of their primary residence but continue renting it out to still claim it as their main residence for up to six years regarding capital gains tax when they sell the property.

Is Sale of Rental Property Taxable Income?

Sale of rental property typically results in taxable income due to capital gains. Capital gain is calculated by subtracting your adjusted cost basis from the net sales proceeds. The resulting amount may be subject to short-term or long-term capital gains taxes depending on how long you owned the property.

How Do I Record a Rental Property Sale?

To record a rental property sale, report it on IRS Form 4797, which details sales or exchanges involving business properties including rentals. Include information about acquisition date, purchase price (cost basis), adjustments (depreciation and improvements), sales date, and sales price.

Conclusion

Before selling rental property, it is important to be aware of the various factors that could affect the sale. From calculating the gain on sale and understanding capital gains tax considerations, to utilizing a 1031 tax-deferred exchange and seeking professional real estate services, there is much to learn before making a decision.

When selling rental property, there may be extra expenses to think about, such as closing fees and repairs/improvements that are needed. By taking these factors into account and working with experienced professionals who understand the local market conditions, you can ensure a successful rental property sale.

If you’re looking for help with your rental property sale in Fairfax County, Virginia, contact WJD Property Management today for expert guidance throughout the process.

What to Know About Renting to College Students

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Do you own a rental property located in the vicinity of a college campus like George Mason or Marymount? If you do, then you are in the prime market for student renters. Student housing is considered a massive, multibillion-dollar real estate sector. Much of the smart money out there knows it and is hungry to occupy this space. Still, there can be plenty of room for individual investors interested in making a mint on this side of education. But what makes this niche so attractive? What are the real ups and downs? Below we discuss what there is to know about renting to college students.

What to Know About Renting to College Students

Pros of renting to college students

Demand for housing is high (and stable)

As long as the university keeps accepting students, the market for your unit will be stable. For starters, most schools do not offer four years of housing. Also, due to high home prices and strict lending policies, homeownership is out of reach for many Americans. So, not only will thousands of college students be on the hunt for a place to live, but also professors and staff during their tenure. For you, this means reduced vacancies and competitive rates.

You don’t even have to work that hard on promoting your listings. The costs of advertising can be extremely low or even free if you advertise where students are looking. You can try Craigslist, Zillow, and Trulia or post for free on student websites. Just be sure to mention the most in-demand amenities in your property adds and offer competitive rental rates.

Higher rents

There are two reasons why this is so. The first one we’ve already mentioned – high demand means you can get away with charging more (just not too much more). Secondly, college students are looking for affordability. For this reason, many choose to live with roommates and split the rent. Having multiple tenants in your rental who are paying rental on one lease means you can up the price a bit but still keep it affordable.

Two roommates eating pizza

Having multiple tenants in your rental unit means you can probably up the price a bit.

A stable third-party payment

The thing about leasing your property to college students is that they’re probably not the ones paying the rent. Typically, either a parent figure or financial aid covers the cost of housing and living expenses. With a more responsible party involved, you will likely receive your rent on time and in full each month.

Students aren’t generally looking for anything fancy

Say you do opt for this tenant base – what this means is that you will likely end up with a lot of low-maintenance renters. You don’t need to be as concerned about attracting new renters with premium updates such as stainless-steel appliances or kitchen backsplashes. What you need to know about renting to college students is that they’re typically perfectly happy with less as long as it is clean and in decent condition. This, in turn, can help you save a lot of time and money.

There are certain amenities they look for in a property, though

Still, there are several things you will need to take care of to make sure your listings match the students’ expectations.

  • Proximity to campus. Students spend most of their time on campus, working, studying, or going to their extracurricular activities. In light of this, it is only natural that they’d prefer to be as close to their campus as possible.
  • A washer and dryer. Having to go to a laundromat can be a serious hassle for a college student. Given they’re so busy juggling their schoolwork and jobs, spending hours waiting to wash and dry their clothes is probably the last thing they want. If there’s something you must know about renting to college students is that they for sure will appreciate an on-site washer and drier.
  • Safety. Both students and their parents, who are most likely footing the cost of rent, want to be sure where they’re living is safe. Adding security features to your property may be your best bet to get a parent to approve of your rental. These may include a deadbolt lock, an alarm system, external security cameras, ample exterior lighting, etc.
  • Wi-Fi. High-speed internet may be one of the most sought-after amenities for college students. Not only do they use Wi-Fi to get their schoolwork done, but also for all kinds of entertainment and cutting down on data usage on their cell phone bills (which we all know can get pricey!) So, if you’re looking to gain an edge over the competition in your area, providing quality internet service is a perfect way to do that. You could also consider offering free Wi-Fi services as a bonus amenity or wrapping it up in the rent price.
A college student writing in her notebook

High-speed internet is one of the most in-demand amenities.

Cons of renting to college students

No rental, credit, or employment history

Likely, your tenants haven’t had the chance yet to build their credit history. It is also possible that they have no experience with renting or paying a debt. This can pose a problem for you as a landlord since screening such a candidate may be a lot more challenging. You are highly unlikely to find the information you need to decide if they would be good renters, cause few or no problems, pay rent on time, etc. However, calling all of their references might help you get some clue about their character. Moreover, you can check if the student in question has previously been expelled from student housing since it’s similar to an eviction. Finally, requiring a cosigner is the best solution for many landlords out there whose tenants have insufficient credit histories.

Students can get loud

With stories about wild parties and students trashing their house, you might feel hesitant to rent your property to students. And you are right, to some extent. Although the majority of students aren’t partying every weekend, they sure are notorious for being noisy. For this reason, be sure to include a Quiet Hours policy in your lease agreement. This way, your tenants would know that there are certain times when they’re free to have their fun and other times when they should be more respectful to others. While you’re at it, consider enforcing a guest policy or any other rules that may seem obvious but still necessary for this group.

Students studying together.

Include a Quiet Hours’ policy in your lease agreement.

They’re inexperienced in maintaining properties

Another thing to understand about college student letting is that your tenants are likely first-time renters. They may have neither the experience nor the maturity to handle basic property upkeep or maintenance issues. Moreover, occasional parties and a high number of guests accelerate normal wear and tear. Finally, you shouldn’t exclude the possibility of returning to the rental at the conclusion of the lease only to find more significant damage. The solution?

Security deposit. Protect yourself against any damages by charging the maximum amount you legally can.

Cosigner. Having a cosigner is bound to discourage negligence since a parent will be on the hook to pay for all repairs.

Walk-throughs. It’s important that everyone is on the same page about the condition of the rental. Also, by conducting routine inspections every few months, you will make sure the unit remains in good condition. Only, make sure to note this in your lease and give your tenants 24 hours’ notice in advance.

Furnished or unfurnished? Many landlords opt for unfurnished student housing for this reason. If you have the same worries, going for an unfurnished unit may be the answer. There are even instances in which the tenant wants to bring his/her own furniture. In this case, having a unit at your disposal is always a good idea. This way, you can have the furniture out of the way (and safe and sound in a storage unit) for this tenant, yet within reach when the time comes to welcome the next one.

Frequent turnover

Yearly turnover is not uncommon with college renters. They may enroll in a four-year degree program. This, however, doesn’t guarantee that their housing plans will remain the same year to year. They also may not be open to signing a lease for longer than a year. Another result of frequent turnover is that you will have to not only make repairs but also find new tenants annually. Otherwise, you run a risk of prolonged vacancy if your unit is vacant the time semester begins. In such an event, it will be pretty challenging to fill your unit until the next semester starts.

Another thing you should know about renting to college students is that they typically sign short-term leases. Since these leases usually run the length of the school year, you might need to find different renters for a summer term. Offering perks for repeat tenants or referrals can be the solution. Have your tenants sign leases for the entire year, even if they do not intend on living in the unit for all the summer months. Another solution is to offer year long-leases with the summer months on discount.

If you would like to learn more about WJD Management, please review our comprehensive Management Program guide. If you are ready to rent your home, feel free to take advantage of our exclusive FREE Rental Market Analysis. Finally, don’t forget to connect with us on social media! Follow us on Facebook, Twitter, LinkedIn, Instagram, and Pinterest for tips, ideas and updates.

How Much Will My Northern Virginia Home Rent For

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“How Much Will My Northern Virginia Home Rent For?” It’s a question I’m asked many times each week–and in reply, I prepare a complimentary rental market analysis. I offer this service as a courtesy to Northern Virginia landlords (as well as those trying to decide whether to become landlords) who are trying to determine how much their Northern Virginia home will rent for. Since visitors to the WJD Management website have asked what goes into one of these local rental market analyses, I thought I’d give our readers the step-by-step process I use.

There’s no magic to it, but it is time-consuming and sometimes takes a “feel” for neighborhoods and market demand. It’s a service I’m proud to offer homeowners in our region, and our determination of rent is objective and numbers-based.

We pull in a variety of factors, including location/neighborhood and the size, features, and assessed value of your home relative to your competition. Here’s what a WJD custom rental market analysis comprises:

Search.

There are many considerations you have to ask yourself when searching for the right rental property.

If you are going to get a management company to have somebody to help you look after your property, your proximity to the property will be less of an issue.

I search the subdivision where your property is located for everything that has been listed over the past 12 months. This will include properties that are currently for rent, properties that have applications registered, properties that have rented, and listings that didn’t rent and have been withdrawn.

Sort by property type.

You must understand where you stand relative to your competition. Sorting out the list by property type will help you see the advantages and disadvantages you can implement or you can improve with your property.

We sort the resulting list by property type and eliminate those that are not comparable to your property. For example, if you have a townhome, I’ll eliminate garden style apartments, duplexes, single family detached houses, etc.

Sort by stories.

One main thing renters ask is the story behind every home. The more bizarre, the more it will click. It is a plus factor to a home.

We then further refine the list by sorting according to number of stories and eliminate those with fewer or more stories than your home.

Sort by bedrooms.

Renters look for homes that will definitely fit the size of their family. Bedrooms are also on the list of searches people look after a house. Bedrooms is the second most important factor in the decision to lease a property.

We sort the list according to the number of bedrooms and eliminate those with fewer or more.

Sort by bathrooms.

The bathroom is one of the most considered rooms. It equals the kitchen in its aspirations. It would be like these: if you would have two properties of equal features, the one that has gussied-up bathroom is not only likely to be snapped up quicker, it’ll be able to sell faster.

We sort the list according to the number of full baths and eliminate those with fewer or more. Then, I’ll sort according to the number of additional half-baths and eliminate those with fewer or more.

Examine current status and prices.

A must-know term should be the market’s current status and price. The rent to value can be a valuable guide and a requisite part of a thorough investigation of an investment opportunity. Next, we’ll take the refined list and eliminate the properties that are currently for rent, have applications and have been withdrawn, noting the prices of all of these.

Examine assessed values.

Determining assessed values is a good factor to give you the confidence and peace of mind that you are asking for/ paying the right amount of rent. It gives advices to what is going around the rental market, and gives idea of what people are looking for in a rental accommodation.

We then do some research from the refined list. I’ll look at the assessed values, noting which listings are similar, more and less in value.

Factor in square footage.

The square footage of your property is a top consideration that people look after to, because of the size of their family, or whether it is because of their dream house. But not just renters, but everyone in the real estate world. It is a measure of any home’s value.

Using the same list, we then look at square footage, noting which listings are similar to your home, which have more and which have less area.

Get some visuals.

People prefer visuals to have some idea of what the property was like, it’s position and it’s calculated size.

We look at virtual tours (where applicable) and determine if any upgrades are present in any of these listings.

Determine length of time on market.

Just like canned goods, property expires. It’s important that listings should always be fresh and updated.

We look to see how many days each of these listings took to rent.

Determine the property’s management status.

Many properties are managed by real estate companies or direct agents. Coordinating with the person involved with the property would be an easy and legal way to do some transactions if needed.

We look to see which if any are professionally managed, the assumption being that if they aren’t then they have been listed by a sales agent who may or may not have a handle on the rental market in that subdivision.

Run the final analysis.

Comparing assessed values, square footages, upgrades, days on the market and if the homes are professionally managed, we calculate an average of what they have rented for. And then I’ll have to implement everything on the market and compete with those on the same market.

Beat your competition.

The final step is to reduce it by at least $25 so as to undercut the currently active competing listings for rent. People love freebies! But no, it’s not freebies. It’s just part of the marketing strategy. The lower your price in comparison with the competition, the more likely it is you’ll have your home rented out quickly. Want to find know “How Much Will My Northern Virginia Home Rent For”? Get a free no obligation rental market analysis today.

free custom rental market analysis

For more updates and information from WJD Management follow our blog and find us on Facebook @wjdmanagement, Twitter @WJDManagement, and Instagram @wjdpm.

Property Management in Old Town Alexandria Virginia

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Are you looking for real advice about property management in Old Town Alexandria Virginia? We’ve got the advice you need for property management in Old Town Alexandria, Virginia.

How much does it really cost?

You live in Alexandria, Virginia, and you recently learned you’re being transferred overseas for the next couple of years. You’re excited about the big new transition. There’s one problem, though: To keep your house, you know you’ll have to become a landlord. Which means somehow dealing with rent collection each month, the intrusion of 2 a.m. phone calls into your sound sleep when something breaks, the paperwork at tax time, the hassle of finding good contractors to fix stuff, etc., etc.

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Arlington VA Property Management: A Checklist for Homeowners

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You have questions about Arlington VA Property Management? We have answers. 

Here’s Our Checklist for Arlington Property Management & Relocating Arlington Homeowners. Arlington is a hot area for rental properties–and in most cases it’s easy to attract applicants eager to rent inside the Beltway. But many Arlington homeowners wonder whether they could do more to attract the best tenants in the region. After being asked countless times by landlords for tips on what’s worth spending money on and what’s not–here’s our handy checklist for relocating Arlington homeowners.

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INFOGRAPHIC: Why Millennials are Choosing Renting Over Buying

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There are numerous reasons why Millennials are choosing renting over buying.

Curious why millennials are choosing renting over buying? According to Inman, “The rental listing site’s 2021 Millennial Homeownership Report found that, in 2020, 18.2 percent of millennials who don’t currently own homes expected to always rent, up from 12.3 percent in 2019 and 10.7 percent in 2018. Millennials are the largest generation and the report pegged their age range as 24 to 39.”

Further, “A 2013 Gallup poll indicates that getting married and having children are goals millennials pursue, but not with the immediacy of previous generations. A significantly larger percentage of millennials are delaying marriage and taking time to discover what they want out of life. They admit to feeling less pressure to make a lifelong commitment to a particular lifestyle, which may play a role in the decision to postpone home purchasing.”

With home sale prices trending very high in Arlington and Fairfax Counties, now is a good time for metro-area property owners to consider the long-term prospects for their home.  The good news for Northern Virginia landlords: The current population of young professionals under the age of 34 is, increasingly, choosing renting over buying.

Relevant read Tenants: 18 Ways to Get Your Security Deposit Back. Also, don’t forget to connect with us on social media! Follow us on Facebook, Twitter, LinkedIn, Instagram, and Pinterest for tips, ideas and updates.

Why Millennials are Choosing Renting Over Buying