If you have a rental property, you’re probably certain why you purchased it: you knew it would make you money.
And we’re guessing it probably has, which makes deciding whether or not it might be time to let it go a little hazy.
Selling a rental property is a major decision. Nagging feelings often don’t seem like enough to justify such a major leap.
If your gut has you questioning things, here are some clear signs it’s time to sell your rental property:
- The neighborhood has changed, and not for the good.
Certain neighborhoods can go south quickly. If you’ve started to notice things like more crime and run-down homes in the neighborhood your rental property is in, you may want to reconsider holding onto it. Even rowdy neighbors, or neighbors that keep their houses unkempt and dirty on the outside can have effects on neighborhood values.
- You could really use the money for other things.
If you have a huge medical bill that needs to be paid – or you have family members that do – immediately or a large amount of debt, selling your rental property might be helpful.
You may also want to sell if you’re thinking about doing other things with your life, like traveling the world, or paying off your primary mortgage, etc.
- Problem tenants.
While having a problem tenant at some point is inevitable, if you’re constantly dealing with nightmarish tenants who do things like trash the property, pay their rent late, or fail to tell you about urgent repairs, it may be time to cut your losses, especially if #1 applies to your situation, as the tenants looking to rent in the area are not going to get any better.
- Too many repairs.
If you have deferred maintenance or an older property, your repair costs are probably starting to rack up. Sometimes, the repairs may be so costly it could take years of rental payments to make up for. For example, a $20,000 job to replace a roof and A/C unit could potentially take five or more years to make up for after expenses like taxes, insurance, mortgage, upkeep, and regular maintenance.
Additionally, if the property needs some repairs that you simply cannot afford to do right now, cutting your losses now would be a good decision.
- You want to simplify your life.
Managing a property, and dealing with all the things that come with it such as maintenance, collecting rent, ongoing repairs, and tenants not paying on time can be stressful.
If you’re feeling fried, removing that stress can reap many rewards. Plus, you can use the money to do things you’ve always wanted to do, and you won’t be tied down because you’re busy managing your rental property.
If you do decide that selling your rental property is in your best interest, talking to a professional home buyer may be a good idea.
They buy properties for cash as-is, so you don’t have to worry about any cleanup or repairs.
They also close in as quick as seven days and can do things like purchase the property with tenants still in place.
Want more information about how selling your rental property to a professional home buyer works? Fill out the form below.