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Home » Blog » When to Sell a Rental Property

When to Sell Rental Property

7 Signs It’s Time to Sell and 5 Signs You Should Keep It

Published on April 10th, 2022

At SoCal Home Buyers our vision is to provide you with a fast, safe and simple solution to selling your rental property without the stress and hassle of listing it. Request a No-Obligation, All Cash Offer on your rental home here.

when to sell rental property

Owning rental property can be a great boost to your income. However, you can’t keep it forever. Knowing when to sell rental property is a question all real estate investors want the answer to.

While no one has a crystal ball that can tell you exactly when you should sell, there are some reliable market signs that indicate when the ideal time to sell could be. There are also some signs that point towards keeping your rental property.

Let’s explore those signs so you can find out whether the time is right for you to sell your rental property.

7 Signs You Should Sell Your Rental Property

Here in California, the real estate market can be a wild ride. If you own rental property in California, it can either be a great money maker or cause you daily stress.

If you're considering your rental real estate options, here are 7 signs to help you decide if you should sell your rental property.

1. It's a "Sellers Market"

“Should I sell my rental in 2022?” If you are asking yourself this question, the signs are currently pointing towards yes. We are in a good seller’s market. This means, the demand for houses exceeds the supply and there are more interested buyers than there are houses for sale.

When this happens, houses tend to sell quickly and at higher prices than usual. Sellers can raise their asking price. Frequently, there are multiple interested parties in one house, which can cause a bidding war and sometimes houses sell for more than the initial asking price.

Because of the high interest, buyers lose a lot of their negotiating powers and are more willing to buy properties as-is.

However, even when the market is in your favor, you should avoid setting your asking price too high. A price that is at or slightly below the market price, could encourage a bidding war as opposed to a high-priced house that pushes away potential buyers.

You also need to consider offers carefully. Just because a buyer gives you the highest offer, that does not mean they have the financial strength to follow through. Check to see if buyers are pre-approved before accepting an offer.

2. Not Enough Liquid Cash

With the rising value of properties in California, owning a rental property is a great way to bring in some extra cash, especially when it comes time to sell. If you find yourself strapped for liquid cash, selling your rental property can turn your hard-earned equity into cash on hand.

selling your rental property for cash

This is especially true if you sell your property to a real estate investment company like SoCal Home Buyers. Companies like this can give you a cash offer and work with your schedule when it comes to closing. This means, the sooner you want to close, the sooner you get paid.

3. You're Not Thrilled About Being a Landlord

 you first put your property up for rent, maybe you imagined being a landlord would be as simple as someone paying you rent each month, while you earned a small profit. However, being a landlord can be stressful, time-consuming, and expensive.

Dealing with tenant issues and property management can be a lot more demanding than most people realize.

If you recognize that you are not cut out to be a landlord, it is time to sell your property. While selling a rental with tenants can be more complicated, many times, real estate investment companies can take over your occupied properties without any problems.

should we sell our rental property

An example of this would be if you sold stock and gained $50,000, you could sell a rental property for a loss of $50,000. This would set your capital gains tax to $0.

4. It's Not a Good Rental Property

While being a landlord is challenging no matter what, having the right rental can make all the difference. A good rental that is easy to maintain, easy to rent, and consistently has good tenants is going to be much easier on you than a rental that constantly has maintenance issues, is hard to fill, and attracts bad tenants.

There are various factors that contribute to the overall quality of a rental property.

factors that determine rental property price

If you have a bad rental that is causing you difficulty and costing you money, it is time to sell

5. The Age of the Property Comes with High Maintenance Costs

In general, the older a properly is, the more maintenance it will need. That maintenance is not free. If you have an aging property that is quickly draining your maintenance budget, sell it now before it gets worse.

Many real estate investment companies will purchase older properties, even with existing problems, and pay you cash.

6. You Want to Use the Equity You've Built

Another good reason to sell your rental property is to use the equity you’ve built for something else. Have you ever wondered when to sell your rental property in retirement? If so, a boost of equity from the sale could give the freedom to enjoy life more, take a vacation, or even make some new investments.

Some people sell property and then use that equity to invest in a better property with more profit potential. Whatever the reason, you need to sell your rental so you can put that equity to good use. Sell your property quickly and get a cash offer from SoCal Home Buyers

7. Rent Costs Don't Match the Homes Value

As communities change over time, property values fluctuate. This can cause rent prices to rise and fall, too. If you are having difficulty finding tenants who are willing to pay the rent that matches the value of the home, it might be time to sell the property. This can free up your equity and let you find a better rental property.

5 Signs You Should Keep Your Rental Property

With real estate in California, it can be hard to know what to expect. While housing costs are typically high, there can be wild fluctuations that always keep you guessing.

If you are debating selling your rental in 2022, here are 5 signs that you should keep your rental property.

1. Your House Has Attractive Rental Amenities

The best rental properties have attractive amenities that keep the renters coming. Tenants love features that make their lives easier and more comfortable. If your property has some of these attractive amenities, you should consider keeping it:

Air Conditioning
Outdoor Space
Parking Space
Walk-in Closets
Updated Kitchen
Multiple bathrooms
Separate Dining Area
Spacious Bedrooms
En-Suite Master Bathroom

With any of these features you should have no problem attracting good tenants, keeping them, and charging higher rent.

2. You've Always Aspired to Own Rental Property

Being a real estate investor is not the right choice for everyone. Some people don’t realize how much work it really is. However, you have dreamed of owning rental property for years, right? Now, that the opportunity is here, you are excited and ready to put in the work. If someone has been pressuring you to sell your property because of the current market conditions, don’t give in. Enjoy your real estate adventure while you can.

3. There's High Demand for Rentals in Your Area

If your rental property is in an area with a high demand, it does not make sense to sell your property. You are in a prime position to charge a higher rent and still get a steady of flow of tenants.

right time to sell rental property

Southern California has a lot of high demand areas. If you’re not sure if your property is in a high demand area, consider the following factors:

Job Market
Number of Rental Listings
Price to Rent Ratio
Community Development

4. There's Plenty of Room for Profit

Perhaps you bought your rental property a couple of years ago and now you are seeing the effects of a booming housing market. With home and rent prices on the rise, you should have plenty of room to make a profit. If you bought the property at an affordable price, you now have the flexibility to increase the rent prices and make more money.

5. You're Personally Attached to the House

One reason for keeping a property is a personal connection. This hard-to-quantify value might seem frivolous and impractical to some, but for others, it holds major importance.

If you have a deep personal connection to your rental property, it is okay to keep it. Perhaps it was the house you grew up in or the house where you raised your children. You might not live there anymore, but you still get the satisfaction of it being in your life. If you can’t bear to part ways with a beloved piece of your life, then you can keep it as long as you want.

Renting vs. Selling a House

While a rental property can give you a steady stream of income, it can also bring a steady stream of maintenance costs. Looking for new tenants often feels like playing a game of poker – you never know what kind of people you will get. While some tenants are perfect and always pay their rent on time, others come with monthly hassles.

The location of your house also plays a big part in determining whether it is best to sell it outright or put it up for rent. If there is high demand for rental properties, you could stand to make a decent profit. However, if there are few renters in your area, the house could sit empty for a few months and cost you thousands.

Consider what kind of market it is. If we are still in a seller’s market, it makes sense to sell. However, in a buyer’s market, it could be more beneficial to keep renting your property.

keep or sell rental property

Keeping a rental property lets you build equity with a dependable stream of income, whereas selling your property lets you put your equity to work somewhere else. You can also try using a keep or sell rental property calculator. These tools give you a good estimate     of your profit potential.

In the end, you will have to weigh your personal pros and cons of selling a rental property to determine what choice best meets your needs.

pros of renting vs selling rental property

SoCal Home Buyers Can Help You Know When to Sell Your Rental Property

If you are on the fence about selling your rental property, SoCal Home Buyers can help. We can help you answer the question, “Should I sell my rental property.” After answering a few questions for us, we can give you a cash offer on your rental property without the hassle of listing it, paying closing costs, or dealing with real estate agents.

With our no-obligation offer, you can evaluate your options with real numbers in mind. If you do decide to sell, you can get cash in hand as soon as you are ready to close, many times in as little as 7 days. Listing your property traditionally could lead to a selling process that lasts up to 6 months and you still have to deal with all the expenses of closing costs and other real estate fees.

Selling your rental property to SoCal Home Buyers means you don’t have to worry about doing any repairs, working out issues with tenants, or dealing with back-and-forth price negotiations.

Ready to experience the new way of selling your rental property? Contact SoCal Home Buyers today for your cash offer.

Simplify Selling Your Rental

If you'd rather not deal with the complications of getting your rental for sale, we can buy it in 'as-is' condition with minimal effort required by you. Click the button below to learn more!

"I had the pleasure of working with SoCal Home Buyers, selling a rental home in the Los Angeles area, while living out of state. Appointments were always kept, I was always informed and kept up to date of any activity. I would definitely use this company again."

Linda S. - SoCal Home Buyers Review

Los Angeles, CA

Or, watch the short video below to learn more about us.

We buy houses from homeowners that need to sell rental property in Los AngelesRiversideSan BernardinoSan Diego, and Orange County. You can either fill out our online form below or give us a call at: 951-331-3844 to find out how we can help you with selling your rental house today!

We're Ready to Make You an Offer

Selling a Rental Property in CA can be a complicated process. At SoCal Home Buyers we make the process fast, simple & easy, while paying you the highest off-market price possible. Click the button below to Request a fair, no-obligation cash offer on your Rental Today.

Steve V.
Steve V.
23:28 18 Sep 21
Trying to sell a house is a daunting task, ask anyone who's done it. The cleaning, the repairs, the showings, etc. It's especially difficult when the property you have doesn't reside in the... same state you live in. After some extensive research I went with SoCal Home Byers. Not only did they provide a fair price but they made the process very easy. All I had to do was sign a few documents, get them notarized and send them back in. Closing was done before I knew it and funds were wired to my account. When you consider the money you'd have to spend to get your house sellable and factor in realtor fees and closing costs, you'd be surprised how close your net profit is when compared to a higher sale price through a realtor. This is the way to go!read more
Roger A.
Roger A.
21:21 28 Aug 21
Angel,Doug,Cindy were absolutely fantasist. Made averthing so easy.Now low ball.Simply the best. Easily the best company to work with,so accommodating..As a Canadian was beside myself with... their help.You will be so happy to deal with them.Forget anyone else.THE BEST.you will be thrilled with their actual caring..read more
Chris A.
Chris A.
23:52 25 Aug 21
What I love about SoCal home buyers is how prompt they came out and gave me a price on my father's house when he passed away. They did what they said and they said what they did. All the... way through the process I knew what was going on and it went smoothly!read more
Grant S.
Grant S.
00:57 21 Aug 21
Had a great experience with SoCal home buyers. Was a fast and painless process and the offer was pretty good. Definitely worth selling to them over listing with an agent. Highly... recommend👍🏻read more
Denise G.
Denise G.
18:30 28 May 21
Highly recommend SoCal Home Buyers if you need to quickly sell your home. We were in a difficult situation with a tenant in a rental who would not move so we could renovate and sell the... home, due to eviction moratorium we could not evict. SoCal Home Buyers were amazing to work with, we got an acceptable price and quickly closed the deal with no issues. No brokers or other fees, give them a call if you need a non-traditional way to sell a home.read more
Paco's D.
Paco's D.
21:34 05 Feb 21
Honest company, doing business with them it was like a melody ! Everything went smooth. done by Text and email. I honestly never spoke to them by phone .but that's just me being a Guru and... always trying to make the most of time. Thanks guys!!read more
linda S.
linda S.
21:42 02 Feb 21
I had the pleasure of working with SoCall Buyers, selling a rental home in the Los Angeles area, while living out of state. Appointments were always kept, I was always informed and kept... up to date of any activity. I would definitely use this company again .read more
Andrew E.
Andrew E.
21:27 20 Dec 20
Terrific experience working with SoCal Home Buyers. From the first conversation, they were very responsive, easy to get a hold of on the phone or email, and very quick to answer any and all... questions and taking the time to ensure we were comfortable the home sale. SoCal was transparent about the entire process and helped guide us step by step, which made the entire transaction very easy and comfortable. Would certainly recommend and use again in the future!read more
Terri G.
Terri G.
19:59 19 Dec 20
The team at SoCal Home Buyers is professional and caring. From my first interaction with Angel, and then Gavino, Cyndi, and finally, Doug, everyone answered questions and responded to... emails and calls in a timely fashion. They made the selling process straight forward and effortless. I was concerned about selling to a "home buyer," but every promise was fulfilled from a 30-day escrow, an "as is sale" with no clean-up or haul-away, and finally, an agreed upon price. I will not hesitate to recommend them to family and friends.read more
Lisa E.
Lisa E.
04:09 15 Aug 20
Dealing with everyone who worked with SoCal Home Buyers was such a pleasure. They walked me through the process from start to finish and were so personable and professional. I would highly... recommend them to anyone who wants to sell their home fast and at a fair price. They are also willing to work with you on any concerns or problems that might arise. Great experience!read more