I've always recommended that when one desires to sell rental property, to hold it for sale or rent, but make the rent being asked for high enough so you've got a better chance of selling, while still low enough to be on the high end of the fair market rental value. If you happen to actually get a renter that will pay the exorbitant rent being asked for, then by all means take it and wait another year or more for that rental contract to end, before raising the rent. Then if they move offer it for rent or sale again with the rent being the new higher rent.
I was planning on selling a paid off rental just over 2 years ago. At planning time I was getting $1000/mo for the 2BR/1BA house with a "tiny" yard. When the occupants vacated I advertised for $1300/mo and unbelievably got someone who not only qualified under my stringent "potential tenant qualificiation policy", they actually paid it.
At the end of their 1 year lease I gave them the choice of $1325/mo or vacate. They chose to vacate, and yet again here comes another that is now paying $1325/mo. Keep in mind that this is for a paid for property that I've had for about 15 years now. So it's not anywhere close to being fully depreciated yet. We'll see what happens when the rent goes to $1350/mo. If the tenant vacates, I'll up it to $1400/mo and see if we get a buyer instead of a renter then.
