Rental properties always seem like a great idea.
You collect a check every month, and someone lives in a property that you own, paying off your Mortgage for you. Many aspiring landlords don’t realize exactly what they’ve gotten themselves into once they’ve begun however.
It’s a difficult thing to navigate, and many people find out the hard way that they don’t want to do it anymore.
Outside of tenants, there are a lot of other reasons why someone might want to sell their rental property. Sometimes, it’s the condition of the property that drives them to make the decision. Maybe they have other aspirations, or the money isn’t rolling in the way they expected it to.
If you’re wondering whether or not you should sell your rental property, there are a few things you should think about.
You Aren’t Making Any Money
When your expenses relating to the property and the money you’re getting in return don’t match up, it’s time to take another look at things. It isn’t always immediately profitable to rent a property.
You might need to fix it up and advertise it before you can fill it, and you won’t start seeing any real profit until after your tenants have paid up for a few months.
If you’re still seeing low profits (or even worse, losing money) after you’ve been renting the property for a while, you might have gotten yourself into a situation that’s seemingly impossible to fix.
You can raise the rent, but if you raise it much higher than what people are paying for similar properties in your area, you’re never going to be able to fill the property.
When this happens, your best choice is to sell the property to someone who is prepared to solve the problem – particularly if they have enough money to wait out a tough period or make changes to the property that would justify a rent increase. You’ll get some of your money back and leave the problem to someone more experienced.
You Want to Move Far Away
What happens if you’d like to retire?
What if you’ve earned enough money to finally buy that home in your dream vacation spot?
What if an emergency has come up that makes it necessary for you to move closer to family out of state?
It’s hard to remotely manage a rental property.
You can’t keep coming back and forth to meet with your tenants – the travel costs will significantly outweigh your profits.
If you want to move, you have two choices.
- You can either hire a property management company to continue to handle the property for you,
- Or you can sell the rental.
When you hire a property management company, you’ll still need to deal with them. Most of them will handle properties for remote owners, but they want a hefty fee. In the end, you’ll be making much less monthly profit while still having some of the responsibility.
When you sell the property, you can be completely done with it.
You can take the money, use it to move, and you won’t need to deal with anyone else.
Your Tenants Are Driving You Crazy
Not all tenants love being respectful, abiding by the lease, and paying on time.
Most tenants are easy to deal with for the first month, but things change once they settle in. If you feel stick to nightmare tenants, you can evict them and go through the process of finding new ones, or sell the property altogether.
When you find new tenants, you have no guarantee that they’ll be on their best behavior. Though it’s not probable that every tenant who lives in your rental will be terrible, many people who have experience with bad tenants find themselves burned out on land-lording.
Some tired landlords sell their properties to investors. Investors can help get terrible tenants out of the property by paying them to leave or providing you with resources to expedite their eviction when they’ve violated the lease. They’ll also purchase the property even if the bad tenants have damaged it.
Your Property is Falling Apart
Properties need a lot of maintenance, especially if they’re older. Some of the wear and tear is normal, and it won’t be your tenants’ fault. You’re responsible for fixing the property. A new roof, new wiring, or a flood from a plumbing failure are costly problems to fix. If these problems keep happening, it’s going to cost a lot more to fix them than you’re making in rent profit.
Selling the your property as-is will get you off the hook quickly. Someone else will assume the responsibility of repairing the property, and you won’t be bleeding money anymore. You can take the money you’ve earned and use it to buy a property in better condition, or invest it into a different venture.
You Want to Do Something Else With Your Life
Is it time for a career change?
Do you want to abandon the technical and complicated ways of land-lording to open that family owned food truck you’ve always fantasized about?
Is your hobby of making scented soy candles taking off a lot bigger than you expected it would?
Don’t waste your time being a landlord when you’ve found a new calling.
The average person changes careers between 3 and 7 times in your life. When it’s your time to change, you’ll know. You deserve to do work you feel good about.
Sell the property, and start your next big venture.
How Should I Sell My Unwanted Rental?
If your unwanted rental is in perfect condition, is located in a strong real estate market, and you don’t mind waiting through the closing process or paying real estate commission fees, you can put it on the regular market.
The alternative is selling your rental to an investor, who won’t care if the rental needs a lot of work or is in a bad area. You’ll get quick cash for your rental property, and you’ll be able to close on the property in as little as seven days. It’s the easiest, fastest exit strategy when you no longer want to be a landlord.
SoCal Home Buyers is familiar with situations exactly like yours, and we know just what to do to help you. If you would to get started and find out what we’d be willing to pay for your property, call 951-331-3844 or submit your properties information below. We generally respond to all submissions same day.
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