8 Tips for Effectively Marketing Your IRA-Owned Rental Property
A vacant property doesn’t generate income. This rather obvious point is a key and often overlooked piece of any successful rental strategy for your self-directed IRA or Solo 401(k) plan.
Whether you’ve just acquired a new property and are looking for your first tenants, or are re-listing a property after a tenant moves out, getting quality tenants in place sooner rather than later can have a big impact on the returns that your property will generate.
Keep in mind that you don’t want just any tenant, but one that will take good care of your IRA investment property and hopefully stay for a decent amount of time.
So how do you get the best possible tenants into your property? It starts with an effective marketing strategy.
Here are 8 tips to help craft an effective marketing campaign for your next vacant IRA property.
1. Have a Marketing Plan in Place Before You Have a Vacant Property
Like so many aspects of a successful real estate investing business plan, having systems in place before you need them is one of the best ways to ensure success.
You should be familiar with the neighborhood dynamics, target renter demographics, and the marketing platforms you intend to use before you need to list your property.
In many cases, having at least a skeleton plan in place before you acquire a property should be part of the pre-purchase diligence you perform to ensure you’ll have a good pool of potential tenants and be able to reach them.
You may need to list a property while it’s occupied. It may therefore make sense to have good pictures of the property while it’s vacant that you can use in your next advertising period.
If you can succeed in getting the word out to the right kind of tenants, you can create demand.
With a truly successful marketing program, you’ll have potential tenants selling themselves to you and competing for your property, rather than the other way around. This can produce higher quality tenants and better overall returns.
2. Know your Target Market
Understanding who the typical renter for a specific property may be is an important piece of designing your marketing.
In a more established neighborhood of single-family homes, you may be attracting families with school-aged children or older adults, and may find that newspapers and Zillow are going to be better channels.
In a gentrifying neighborhood with lower priced properties, you may need to reach a younger demographic and add social networks like Facebook to the mix.
Your ads will also need to speak to the features of the property and neighborhood a particular type of renter may be most interested in.
Younger tenants will be motivated by access to entertainment and dining options. Older renters may be more interested in proximity to parks, libraries, or community centers.
3. Show Occupied or Show Empty?
Property owners have different opinions for whether to list a property before a current tenant moves out or after it’s vacant.
Having a head start and finding a new tenant before the old one leaves can minimize the vacancy down time. However, it can be much easier to market a property and create demand when the property is clean and shown in the best possible light.
Showing an occupied property requires coordination with the tenant and generally results in multiple one-off showings. With a vacant property, you can hold an open house and get multiple potential tenants in at one time. This can be more time efficient, and create some level of competition.
The type of property, time of year, and local market demand will help determine which is the best approach for your IRA rental. Over a longer ownership period, you may switch between these two strategies.
All properties need attention from time-to-time. Having the opportunity between tenants to address maintenance and do a deep clean and refresh can help attract the highest quality tenants willing to pay a bit extra for a property in nicer condition.
4. Let Your Property Shine
One of the best ways to make your property stand out and create demand is with quality pictures. If you can include a video walkthrough of the property, that can be even better.
Be sure that the pictures not only look good, but that they provide a prospective tenant with a true feel for the property. So many rental listings have a small number of dark pictures. It’s easy to have your property look appealing with a full set of pictures that are clean and well lit.
If you’re not photographically inclined, it can be well worth it to hire a professional to make your property pop on the listings. If your property is vacant, it may even be worth having it lightly staged to create a more inviting feel.
5. List Everywhere
There are a wide variety of mediums you can use to list a property for rent.
What works best for one property and renter demographic may not work well for all, but a concerted approach that uses multiple platforms will reach the broadest group and hopefully create strong demand.
It all starts with a yard sign. This very low-tech device is time tested, and is especially effective in neighborhoods with single-family homes. Some folks simply drive a neighborhood they are interested in, or may see your property on their way back from a disappointing showing down the road.
Newspapers can be okay if the target renter is older, or if there is a very neighborhood focused publication you can use.
There are also several great online resources such as Craigslist, Zillow Rental Manager, and Trulia. Each of these platforms has different approaches and ways to provide details of the property, images, and ways to get in touch.
Be sure to spend a bit of time reviewing other listings to see what works and what does not. Some landlords will leverage video platforms like YouTube to get their property seen.
6. Pre-Qualify in your Marketing
The goal of an effective marketing campaign is to get a good number of qualified potential tenants. This can be very different from being overwhelmed by a lot of inquires that are not good fits.
Pre-qualifying tenants is a two-way street. The property has to provide what they need, and the tenants need to meet your criteria.
Be very thorough in describing your property, and don’t try to hide potential deal breakers. You’ll just end up wasting time if someone insists upon a feature such as garage parking, a fenced back yard, or air-conditioning and your property doesn’t have one of these, but your listing doesn’t make that clear. If you have a pet policy, be up front with that information.
As far as pre-qualifying tenants be very clear about your rental terms such as lease length, deposits required, maximum numbers or non-related tenants, and the like.
If your policy is to require credit or background checks state that in your ads.
When dealing with qualifying issues, be sure to comply with fair housing rules.
7. Be Accessible and Responsive
Generating interest with your property marketing does you no good if you don’t follow up promptly and professionally when in inquiry is made.
Make it easy for potential tenants to find you and be sure to put relevant contact information in your advertising. Many of the advertising platforms will have an inquiry feature that directs to your email or sends you a text message.
It can be very helpful for following up on tenant inquiries, as well as the future management of your landlord-tenant-relationship to have a separate set of contact information for your IRA rental activities.
It’s easy and inexpensive to get virtual phone numbers and separate email accounts. If you have a separate phone number for your rentals, you can easily leave a specific voicemail greeting that speaks to your properties, showing availability, etc.
Whatever tools you decide to use to communicate, be sure to check them regularly and be responsive.
8. Good Plans = Great Results
When thinking about your marketing campaign and the effort that goes into implementing and executing your plan, it’s helpful to keep in mind that your goal is to keep your property rented to the best possible tenants.
By honing your marketing efforts to attract the best pool of qualified tenants you can ensure the best results for your IRA rental property investment.
One of the most powerful ways you can protect your IRA’s investment property from damage and neglect is by having a thorough system in place for screening potential renters.
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Quick answers to common questions
We’ll take you through a simple, step by step process designed to put your investment future into your own hands…immediately. Everything is handled on a turn-key basis. You take 100% control of your Retirement funds legally and without a taxable distribution.
YES! In 1974, Congress passed the Employee Retirement Income Security Act (ERISA) making IRA, 401(k) and other retirement plans possible. Only two types of investments are excluded under ERISA and IRS Codes: Life Insurance Contracts and Collectibles (art, jewelry, etc.). Everything else is fair game. IRS CodeSec. 401 IRC 408(a) (3)
It’s actually pretty simple. Early on, regulators let the securities industry take the lead in educating the public about retirement accounts. Naturally, brokers and banks promoted stocks, bonds, and mutual funds—giving the impression that those were the only allowed investments. That was never true... and still isn’t. You can probably guess why they kept the rest under wraps.
It is possible to use funds from most types of retirement accounts:
- Traditional IRA
- Roth IRA
- SEP IRA
- SIMPLE IRA
- Keogh
- 401(k)
- 403(b)
- Profit Sharing Plans
- Qualified Annuities
- Money Purchase Plans
- and many more.
It must be noted that most employer sponsored plans such as a 401(k) will not allow you to roll youraccount into a new Self-Directed IRA plan while you are still employed. However, some employers will allow you to roll a portion of your funds. The only way to be completely sure whether your funds are eligible for a rollover is by contacting your current 401(k) provider.
A Solo 401(k) requires a sponsoring employer in the format of an owner-only business. If you have a for-profit business activity – whether as your main income or as a side venture – and have no full-time employees other than potentially your spouse, your business may qualify. The business may be a sole-proprietorship, LLC, corporation or other entity type.
A self-directed retirement plan is a type of IRA or 401(k) that gives you greater control over how your retirement funds are invested. Unlike traditional accounts held at banks or brokerage firms that limit you to stocks, bonds, and mutual funds, self-directed plans allow you to invest in a wide range of alternative assets including real estate, private businesses, precious metals, cryptocurrency, and more.
These plans still follow the same IRS rules and maintain the same tax-deferred or tax-free benefits as conventional retirement accounts. The difference is simply in how and where you choose to invest.
No. Moving to a self-directed IRA or Solo 401(k) does not trigger any taxes, as long as your funds are eligible for rollover.
Self-directed retirement plans maintain the same tax-advantaged status as traditional plans offered by banks or brokerage firms. The key difference is flexibility—our plans are designed to give you greater control and allow for a wider range of alternative investments beyond stocks, bonds, and mutual funds.
A prohibited transaction is any action between your retirement plan and a disqualified person that violates IRS rules and can lead to serious tax consequences. Under IRS Code 4975(c)(1), prohibited transactions include:
- Selling or leasing property between your plan and a disqualified person Example: Your IRA cannot purchase a property you already own.
- Lending money or extending credit between the plan and a disqualified person Example: You cannot personally guarantee a loan your IRA uses to buy real estate.
- Providing goods or services between your plan and a disqualified person Example: You can’t use your personal furniture to furnish a rental property owned by your IRA.
- Using plan income or assets for the benefit of a disqualified person Example: Your IRA cannot buy a vacation home that you or your family use.
- Self-dealing by a fiduciary (using plan assets for their own benefit) Example: Your CPA shouldn't loan your IRA money if they’re advising the plan.
- Receiving personal benefit from a deal involving your IRA's assets Example: You can’t pay yourself from profits your IRA earns on a rental.
If a transaction doesn’t clearly fall within the allowed guidelines, the IRS or Department of Labor may review the situation to determine if it qualifies as a prohibited transaction.
Disqualified persons are individuals or entities that are prohibited from engaging in certain transactions with your IRA or 401(k). Doing so could trigger a prohibited transaction, which may result in taxes and penalties.
Here’s who is considered a disqualified person:
- You (the account holder)
- Your spouse
- Your parents, grandparents, and other ancestors
- Your children, grandchildren, and their spouses
- Any advisor or fiduciary to the plan
- Any business or entity owned 50% or more by you or another disqualified person, or where you have decision-making authority
These rules exist to prevent self-dealing and ensure your retirement plan remains in compliance with IRS regulations.
(Reference: IRC 4975)
Understanding and following these rules can be tricky, but it’s very doable. The best way to stay compliant is to work with professionals who specialize in self-directed retirement plans. They can help you navigate IRS guidelines and avoid prohibited transactions.
If an IRA holder is found to have engaged in a prohibited transaction with IRA funds, it will result in a distribution of the IRA. The taxes and penalties are severe and are applicable to all of the IRA’s assets on the first day of the year in which the prohibited transaction occurred.
Yes. While self-directed retirement plans allow for a wide range of investments, there are a few important restrictions.
You cannot invest in collectibles or life insurance contracts, and you must avoid prohibited transactions—activities that benefit you personally rather than the retirement plan. These include things like buying or selling property to yourself or family members, using plan assets for personal gain, or self-dealing in any way.
Violating these rules could cause your entire IRA to lose its tax-advantaged status. To protect your account, it’s essential to work with professionals who understand IRS regulations and can help you stay compliant.
This is a common misconception. In many cases, professionals may simply be unfamiliar with self-directed retirement plans, as they fall outside their usual scope of work. CPAs and tax preparers are trained to file taxes, not necessarily to advise on alternative retirement strategies. Financial advisors and brokers often work for firms that focus on traditional investments like stocks and mutual funds—and may not benefit from or support alternative options like real estate or private lending.
Self-directed retirement investing is legal under IRS rules—but like any specialized area, it requires working with professionals who understand how it works.
The IRS has rules in place to make sure your IRA is used only for the exclusive benefit of the retirement account—not for personal gain or to help family members. These rules can get complicated because there are many ways a conflict of interest can occur, even unintentionally.
For example, if your IRA buys a house and rents it to your mother, you might be reluctant to evict her if she stops paying rent. That emotional connection creates a conflict between what’s best for your IRA and your personal relationships, something the IRS aims to prevent.
These rules help ensure your retirement account stays compliant and protected. (See IRC 408)
Yes. Most tax-deferred retirement accounts—such as Traditional IRAs, old 401(k)s, 403(b)s, and TSPs—can be rolled over into a self-directed IRA or Solo 401(k), depending on your eligibility. Roth IRAs cannot be rolled into these accounts.
You can contribute directly from earned income, subject to annual IRS contribution limits. The method and amount depend on the type of plan you have (e.g., Solo 401(k) vs. IRA).
To take a distribution, you'll request funds through your custodian or plan administrator. Distributions may be taxable depending on your account type and age. Early withdrawals may be subject to penalties.
For 2025, the Solo 401(k) max contribution limit is $81,250 if age 60-63, $77,500 if age 50-59 or 69+, and $70,000 if under 50. Traditional and Roth IRAs have a limit of $7,000 ($8,000 if age 50+). Limits are subject to IRS adjustments.
Yes. IRA contributions are typically due by your personal tax filing deadline (e.g., April 15). Solo 401(k) contributions follow your business tax filing deadline, including extensions.
IRS reporting requirements vary depending on the type of self-directed retirement plan you have. Here’s a quick breakdown of what you need to know
Please note: Our team can help you understand what’s required for your specific account, but we don’t provide tax or legal advice. We always recommend working with a qualified tax professional to ensure full IRS compliance.
Self-Directed IRA (Traditional or Roth)
- Form 5498 – Filed by your custodian each year to report contributions, rollovers, and the fair market value (FMV) of your account.
- Form 1099-R – Issued if you take a distribution or move funds out of your IRA.
- Annual Valuation – You'll need to provide updated FMV for any alternative assets held in the account, such as real estate or private placements.
Solo 401(k)
- Form 5500-EZ – Required if your plan assets exceed $250,000 as of year-end. Must be filed annually by the plan participant.
- Form 1099-R – Required if you take a distribution or roll funds out of the plan.
- Contribution Tracking – Keep records of employee and employer contributions. These are not filed with the IRS but may be needed for tax reporting or audits.
SEP IRA
- Form 5498 – Filed by your custodian to report contributions and FMV.
- Form 1099-R – Filed by your custodian. Issued for any distributions.
- Employer Contributions – Must be reported on your business tax return (and on employee W-2s, if applicable).
Health Savings Account (HSA)
- Form 5498-SA – Filed by your HSA custodian to report contributions.
- Form 1099-SA – Filed by your HAS custodian. Issued for any distributions.
- Form 8889 – Must be included with your personal tax return to report contributions, distributions, and how funds were used.
