Investing in real estate is all about maximizing your profit, and if you’ve chosen to become a landlord, it’s possible you’ve enjoyed a passive income for some time. However, holding onto a rental property for too long can come with risk. If you are considering selling your rental property, it might be time to do so.
How can you tell it’s the right time to sell your rental property? Here're five reasons you could benefit from selling your rental instead of continuing to be a landlord.
Five convincing reasons to sell your rental property.
1) Being a landlord is more trouble than it’s worth.
As a landlord, you are likely very familiar with the day-in-day-out requirements of managing a property. Since emergency maintenance calls don’t exactly abide by business hours, you need to be ready to answer your phone at all times, and this can take a toll.
If you no longer want the stress of maintaining a proper living space for your tenants, or you are tired of dealing with difficult renters, you could have reached your limit. It’s understandable, being a landlord of a rental property is a significant undertaking. If you are no longer enthusiastic about your landlord responsibilities, you will likely feel much better if you sell your property.
2) Your property is now worth more than when you bought it.
As far as real estate investment goes, the name of the game is ensuring property appreciation. It’s likely the housing market has been kind to the home prices in your area, and the amount of work you put into your property is now reflected in its worth. If you have successfully flipped your property, and it is now worth more than the price you bought it for, selling it might earn more than a long-term strategy such as renting.
3) You no longer see a positive cash flow.
On the other hand, if you are losing money each month, as opposed to making a profit, you might need to reevaluate the situation. There are many reasons your cash flow could be dwindling, and it’s not necessarily always the fault of the landlord. The cost of taxes, utilities, and insurance may have risen, market rents may have dropped, or both.
While you might be considering holding onto your rental in the hopes the situation might improve, be cautious that you might be aboard a sinking ship. Just because you have hope the situation might improve, your property could be hemorrhaging cash all the while, and you could be digging yourself into a hole. Considering no one can accurately predict the future, selling your rental as soon as possible is likely the best idea.
4) Your plans don’t have room for landlord responsibilities.
Maybe it’s time for a change of scenery, or perhaps you invested in a rental property long ago to boost your retirement funds. No matter your reason for being a landlord, it’s not likely your life plans include doing so until the end of time. If you’ve decided to make a change in your life and being a landlord is not part of your plan, selling your rental property is a logical solution.
5) You can no longer afford the maintenance.
Let’s face it, the cost associated with properly maintaining a rental property can get expensive. As a landlord, you need to be sure the property is habitable for your tenants and is up to par with health codes and regulations in your area. While some repairs can be chalked up to DIY projects, sometimes repairs can cause quite a hit on your bank account. If you are finding it difficult to fund costly repairs, or to stay atop your to-do list, it is likely a clear signal you should sell.
The best, and easiest way to sell your rental property.
Usually, it’s essential to get the timing of your sale perfectly, and whether or not you make a profit can depend on the fickle nature of the market. Given the track record and many ups and downs of the housing market, selling your rental property can be a difficult and risky venture. Where’s a crystal ball when you need it?
Luckily, with MoneyBug, you don’t have to pay any mind to the current status of the market. You can sell your rental property to a guaranteed buyer, and still receive the highest amount of cash. MoneyBug is specially designed to buy properties as-is, even if they are damaged. This is great if you can no longer properly maintain the repairs of your property, or if it has acquired some damage over the years. MoneyBug does not require you to make any repairs on your property, and will still pay top-dollar so that you can save time and money.
There’s no paperwork to get an offer for your rental, and MoneyBug’s cash offer is guaranteed to be given to you in full once the sale closes. If you’re curious what your rental property can earn with MoneyBug, you can find out instantly here!