Selling Your Las Vegas Rental Property: What Landlords Need to Know

by Ryan Rose

You've been a landlord. Maybe for years. But between maintenance calls, tenant issues, and market uncertainty, you're ready to cash out. You're not alone.

Investor purchases in Las Vegas dropped 20% year-over-year in Q3 2025, the largest decline of any major U.S. metro. Many landlords are selling. Here's how to do it right.

Selling Occupied vs. Vacant

The first decision: sell with tenants in place or wait until they move out?

Selling occupied:

Appeals to investors who want immediate rental income
No vacancy costs while marketing
Harder to show (must coordinate with tenants)
Tenants may not keep the home show-ready
Limits your buyer pool to investors

Selling vacant:

Appeals to both investors and owner-occupants
Easier to show and stage
You lose rent during marketing and escrow
Broader buyer pool typically means higher prices

In today's market with cash buyers at 23% and investors pulling back, vacant properties often sell for more because they attract owner-occupants who typically pay retail.

Tenant Rights and Notice Requirements

Nevada law requires proper notice before selling an occupied property:

Month-to-month tenants: 30 days written notice to terminate tenancy (or as specified in your lease).

Lease tenants: The lease survives the sale. The new owner inherits the tenant and lease terms. You can't force them out early just because you're selling.

Showing access: You must give reasonable notice (typically 24 hours) before showings. Work with your tenants to establish showing windows.

Preparing a Rental for Sale

Rental properties often need more prep than owner-occupied homes:

Deferred maintenance. Things you let slide need attention. Fix the small stuff that accumulated over years of tenancy.

Deep cleaning. Professional cleaning after tenants move out is essential. Years of wear show.

Paint and flooring. High-traffic areas in rentals take abuse. Fresh paint and carpet/flooring updates make a big difference.

Curb appeal. Rentals often have neglected exteriors. Landscaping cleanup matters.

Tax Implications

Selling a rental property has different tax treatment than selling a primary residence:

No primary residence exclusion. You can't exclude $250,000-500,000 of gains like you can with your main home.

Depreciation recapture. You'll owe taxes on depreciation you claimed over the years. This is taxed at up to 25%.

Capital gains. Profits above your adjusted basis are taxed as capital gains (long-term if held over a year).

1031 exchange option. You can defer taxes by rolling proceeds into another investment property within specific timeframes.

Consult a tax professional before selling. The tax implications can be significant.

Who's Buying Investment Properties?

With institutional investors pulling back, your buyer is likely:

Small individual investors. People buying their first or second rental property.

Out-of-state investors. California and other high-cost state residents seeking Nevada returns.

Owner-occupants. If sold vacant, first-time buyers or families looking for a primary residence.

Marketing to owner-occupants typically yields higher prices but requires a vacant, show-ready property.

Pricing a Rental Property

Investors value properties based on income potential: cap rates, cash flow, and rental comps. Owner-occupants value based on comparable sales and emotional appeal.

If selling to investors, know your numbers: current rent, potential rent, expenses, and cap rate. If selling to owner-occupants, focus on comparable sales and condition.

The Bottom Line

Selling a rental property involves tenant coordination, tax planning, and strategic decisions about timing and target buyers. Many landlords are exiting now while prices are at record highs. If you're considering cashing out, plan carefully to maximize your return.

Ready to sell your Las Vegas rental property? Let's discuss your options and create a strategy.

Frequently Asked Questions About Selling Rental Property in Las Vegas

Q1: Should I sell my Las Vegas rental property with tenants in place or vacant?

It depends on your goals. Selling occupied limits your buyer pool to investors but provides continuous rental income during the sale process. Selling vacant attracts both investors and owner-occupants, typically resulting in higher sale prices, but you'll lose rental income while the property is on the market. In the current Las Vegas market with investor purchases down 20%, vacant properties often perform better by attracting owner-occupants who pay retail prices.

Q2: Can I force my tenant to move out so I can sell my rental property?

If you have a month-to-month tenant, you can provide 30 days written notice to terminate the tenancy in Nevada. However, if your tenant has an active lease, you cannot force them out early just to sell. The lease survives the sale, and the new owner inherits the tenant and all lease terms. You'll need to either sell with the tenant in place or wait until the lease expires.

Q3: What are the tax implications of selling a rental property in Las Vegas?

Selling a rental property has significant tax implications. You cannot exclude capital gains like you can with a primary residence ($250,000-500,000 exclusion doesn't apply). You'll owe depreciation recapture taxes (up to 25%) on depreciation claimed over the years, plus capital gains tax on profits above your adjusted basis. However, you can defer taxes using a 1031 exchange by rolling proceeds into another investment property. Always consult a tax professional before selling to understand your specific situation.

Q4: How much notice do I need to give tenants before showing my rental property?

In Nevada, landlords must provide reasonable notice before entering a rental property for showings, typically 24 hours written notice. It's important to work cooperatively with your tenants to establish convenient showing windows that respect their privacy while allowing you to market the property effectively. Clear communication and flexibility can make the selling process smoother for everyone involved.

Q5: What repairs should I make before selling my rental property?

Rental properties often need more preparation than owner-occupied homes. Address deferred maintenance issues that accumulated during tenancy, invest in professional deep cleaning, update high-traffic areas with fresh paint and new carpet or flooring if needed, and improve curb appeal through landscaping cleanup. These improvements can significantly impact your sale price, especially if you're targeting owner-occupants who expect move-in ready condition.

Q6: Who is buying investment properties in Las Vegas right now?

With institutional investor purchases down 20% in Q3 2025, the current buyer pool consists primarily of small individual investors buying their first or second rental property, out-of-state investors from high-cost areas like California seeking Nevada returns, and owner-occupants if the property is sold vacant. Owner-occupants typically pay higher prices than investors, making vacant sales potentially more profitable in the current market.

Q7: How do I price my rental property for sale?

Pricing strategy depends on your target buyer. If selling to investors, focus on income potential including current rent, potential rent, expenses, and cap rate. Investors value properties based on cash flow and return on investment. If selling to owner-occupants, price based on comparable sales of similar properties in your area and overall condition. Owner-occupants focus more on features, location, and emotional appeal rather than rental income potential.

Q8: What is a 1031 exchange and should I consider one?

A 1031 exchange allows you to defer capital gains taxes by reinvesting proceeds from your rental property sale into another investment property within specific IRS timeframes. This strategy is ideal if you want to continue investing in real estate but upgrade to a different property or market. The process has strict rules and deadlines, so you'll need to work with a qualified intermediary and tax professional to execute it properly.

Q9: Is now a good time to sell my Las Vegas rental property?

Many landlords are currently cashing out while Las Vegas property prices remain at record highs. With investor purchases declining 20% year-over-year and market uncertainty, landlords who have built significant equity are choosing to sell. The decision depends on your individual circumstances, including your property's condition, tenant situation, tax implications, and personal investment goals. Consider consulting with a local real estate professional to evaluate your specific situation.