Should I Sell My Rental Property?

Should You Sell My Rental Property?

As a landlord, you’re not only a property owner,  you are also a business owner. There are endless responsibilities that come alongside the income and there may come a time when you ask yourself, “Should I sell my rental property?”

To answer your question, you will want to understand the process and a few key factors:

  • Taxes
  • Repair costs
  • Tenant turnover rate
  • Market rent
  • Property management

If owning a rental property is no longer desirable or the difficulties seem to be outweighing the profits, it may be time to ask yourself, if you should sell it?

Five Determining Factors:

1. Taxes

As a property owner, your taxes can be quite high. If you’re considering selling your rental property, get an evaluation of your taxes first. After you receive the evaluation, try to find alternative ways to reduce any future taxes.

Note:  It is possible for the taxation on the property to be lowered if an assessment of the property shows that the home is worth a lower value. Taxes are important to your decision of should I sell my property because if your taxes are strongly affecting your annual profits, you may want to sell.

2. Repair Costs

The more tenants in your rental property over the years, the more repair costs you might incur. Before becoming a landlord you may have budgeted for the normal wear and tear of the house including things like if the pipes break, the roof deteriorates, etc. Repair costs are unfortunately inevitable over time. But, if you’re paying over your estimated threshold of repair costs annually and it is affecting your profitability, you may want to consider answering yes to the questions of should I sell my rental property.

3. Tenant Turnover Rate

If you have a high turnover rate, it may be negatively affecting your rental property. A high turnover can cause you to lose credibility and fail to get good tenants. If you are in a situation where you have a high turnover then it may be time to consider selling your rental property.

4. Market Rent

If you are having a hard time making a profit or failing to get tenants due to the cost of your property, you will want to do a market evaluation. You will need to do an evaluation of rental prices for properties similar to yours against your asking price.

This evaluation will help you understand what is a reasonable market related price to offer your tenants. If the results are the same and your profits continue to decrease, this may be a good time to consider answering yes to should I sell my rental property.

5. Property Management

The responsibilities of being a landlord can be overwhelming and time consuming. If the responsibilities aren’t fulfilled and in a timely manner, you may risk losing business. If that is the case, you might consider hiring a professional property manager. If you need to but cannot afford to hire a professional property manager, it may be time to sell your property.

There you have it, the five main factors to consider when trying to decide the answer to “Should I sell my rental property?” There are other factors to consider that can be personalized to each situation, but we hope that these gave you a good start.

If you’re like many, you may ultimately decide it is time to sell your property! If that sounds like you and you’re thinking, “Hey, I need to sell my house fast ,” you’re in luck!

We buy houses in Los Angeles and Orange County. So anywhere in Southern California, we are who you should call to receive a cash offer on your home.

There is No Time like the Present: Use Our Form Below to Get Started!

We buy houses in California regardless of condition. Our obligation-free process reduces hassle and stress, and will allow you to unburden yourself from your unwanted property quickly and easily. Use our simple form below to let us know about the property and we will get back to you within 24 hours with a fair written offer for cash.
  • This field is for validation purposes and should be left unchanged.

Also consider reading:
How much does it cost to be a landlord?
What to do with problem tenants.

John Medina

John Medina Buys Houses sets a different standard for selling your home. We’re focused on providing you with a life-changing solution and ensuring the process is simple. Our team is upfront, honest and caring. Regardless of your situation, we offer an easy home sale on your terms. John Medina Buys Houses – sell your home on your terms.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on selling your house below. Like us, follow us, connect!

Leave a Reply

Your email address will not be published. Required fields are marked *