How to Sell a Home with a Rental Unit in Tacoma Washington: Maximize Value for Buyers and Investors

How to Sell a Home with a Rental Unit in Tacoma: Maximize Value for Buyers and Investors

If your Tacoma home includes a rental unit—whether it’s a basement apartment, accessory dwelling unit (ADU), or detached guest house—you’re sitting on a unique selling feature. Rental units not only generate additional income but also appeal to a broad range of buyers, from investors to homeowners looking to offset their mortgage.

Here’s how to market and sell a home with a rental unit to maximize its value and attract the right buyers.

Step 1: Understand Your Target Audience

Before listing your home, consider who your ideal buyer might be:

1. Investors: Buyers seeking income-generating properties will appreciate a functional rental unit with a proven track record.
2. Owner-Occupants: Families or individuals who plan to live in the main house and rent out the unit to help with mortgage payments.
3. Multi-Generational Families: Buyers who need extra space for aging parents, adult children, or guests.

Knowing your audience helps you tailor your marketing strategy.

Step 2: Highlight the Rental Unit’s Potential

Buyers need to see the value of the rental unit, whether it’s a source of income or a flexible living space.

1. Showcase Rental Income

   • If the unit is currently rented, provide information about the rental history, current lease terms, and monthly income.
   • Include documentation like rental agreements and income statements.

2. Emphasize Versatility

   • Highlight how the unit can be used as a rental, guest suite, or home office.
   • Mention features like a private entrance, kitchen, or bathroom that make it self-sufficient.

3. Describe Market Demand

   • Tacoma’s rental market is strong, especially in neighborhoods with easy access to downtown, public transportation, and local amenities.
   • Mention any nearby schools, hospitals, or businesses that attract tenants.

Step 3: Prepare the Rental Unit for Sale

Just like the main house, the rental unit should be clean, well-maintained, and move-in ready.

1. Deep Clean and Stage

   • Declutter and clean the space thoroughly.
   • Stage the unit to showcase its functionality and appeal to prospective tenants or family members.

2. Make Necessary Repairs

   • Address any maintenance issues, such as plumbing leaks, damaged flooring, or outdated appliances.
   • Ensure all systems (heating, cooling, electrical) are in good working order.

3. Update Where It Counts

   • Consider cost-effective upgrades, like fresh paint, modern fixtures, or energy-efficient appliances.
   • Focus on improvements that enhance the unit’s livability without breaking the bank.

Step 4: Address Legal Considerations

Selling a home with a rental unit involves specific legal and regulatory considerations. Ensure you’re compliant with Tacoma’s local laws:

1. Permits and Zoning

   • Verify that the rental unit is legally permitted and meets zoning regulations.
   • If you’re unsure, consult with a real estate attorney or local planning department.

2. Tenant Rights

   • If the unit is occupied, ensure you follow Washington State’s landlord-tenant laws regarding notice periods and lease agreements.
   • Be transparent with buyers about the tenant’s lease terms and rights.

3. Disclosure Requirements

   • Provide accurate and honest information about the unit’s condition, rental history, and compliance with local laws.

Step 5: Market the Property Effectively

1. Professional Photography

   • Include high-quality photos of both the main home and the rental unit.
   • Show key features, such as separate entrances, private yards, or dedicated parking.

2. Highlight Income Potential

   • Use phrases like “income-generating opportunity” or “live in one unit and rent the other” in your listing description.
   • Mention estimated or actual rental income to appeal to investors.

3. Target the Right Platforms

   • List the property on real estate websites that cater to both residential and investment buyers.
   • Use social media to reach a broader audience, emphasizing the property’s dual-purpose appeal.

Step 6: Price Your Home Strategically

A rental unit can add significant value, but pricing must reflect both the market and the home’s condition. Work with a knowledgeable real estate agent to:

• Analyze comparable sales of properties with rental units in Tacoma.
• Account for the unit’s income potential when setting the price.
• Consider the buyer pool—investors may focus on return on investment, while owner-occupants may prioritize affordability.

Step 7: Prepare for Buyer Questions

Buyers will likely have questions about the rental unit. Be ready to provide:

• Rental History: Details about past tenants, rent amounts, and vacancy rates.
• Utilities: Information about whether utilities are shared or metered separately.
• Maintenance Costs: Estimates for maintaining the rental unit, such as repairs or cleaning.
• Legal Documentation: Copies of permits, leases, and any compliance certifications.

Common Challenges and How to Overcome Them

1. Uncooperative Tenants

   • Communicate openly with tenants about the sale process and provide proper notice for showings.
   • Consider offering incentives for cooperation, like reduced rent during the sale period.

2. Zoning or Permit Issues

   • Resolve any discrepancies before listing the property to avoid complications during the sale.

3. Limited Buyer Pool

   • Focus your marketing on buyers who see the value in a dual-purpose property, such as investors or multi-generational families.

Is Selling with a Rental Unit the Right Choice?

Selling a home with a rental unit can be a fantastic opportunity to attract motivated buyers and maximize your home’s value. However, it requires thoughtful preparation and marketing to highlight its potential while addressing any legal or logistical challenges.

Let’s Maximize Your Home’s Potential

If you’re ready to sell your Tacoma home with a rental unit, I can help you position it to appeal to the right buyers. From marketing strategies to navigating local regulations, I’ll guide you through every step of the process to ensure a successful sale.

Contact me today to discuss your goals and get started on your home-selling journey!