It’s important to remember that, owning a rental property is similar in many ways to owning a business. Owning a rental property comes with endless responsibilities, and you’ve probably wondered if you should look in to selling your rental property at one point or another.
There is no easy answer to the question, but to get an educated idea you will need to understand a few key factors:
- Repair costs
- Tenant turnover rate
- Market rent
- Property management
Aa a property owner, your taxes can be quite high. If you are considering selling your rental property, it is a good idea to get an evaluation of your taxes first. Once you have received your evaluation, look into alternative ways to reduce any future taxes.
How can this benefit you? It’s quite possible that taxation on the property can be lowered if an assessment of the property shows that the home is worth a lower value. Taxes should always be an important factor in any decision to sell or retain a property, because if your taxes are strongly affecting your annual profits, you may want to sell.
Any long term owner of a rental property will tell you, the more tenants you’ve had over the years, the more repair costs you’re likely to incur.
Prior to becoming a landlord you may have budgeted for the expected wear and tear of the house (e.g. pipes breaking), these are inevitable as a property ages. But, if you’re paying more than you budgeted for, and repairs are becoming a regularity, you may want to consider selling your house as this is going to affect your profitability.
Tenant Turnover Rate
A high tenant turnover rate is highly likely to detrimental in the long term, it can be the catalyst for you losing credibility and cause you to fail to get good tenants. The cause could be anything from mismanagement to poor screening processes. If you’re in a situation where your tenant turnover rate is high then it might be worth considering selling your rental property.
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.
A market evaluation will consist of you researching properties similar to yours against your asking price. This will help you understand what is a reasonable market related price to offer your tenants. If results are the same and your profit margin continues to be an issue, this may be a sign that you should consider selling your rental property.
The responsibilities of being a landlord can, at times, be overwhelming and time consuming. Worse, if these responsibilities aren’t fulfilled and in a timely manner, you risk losing business. If this is the case, it is worth looking into hiring a professional property manager. If this is not an affordable option, you should consider selling your property.
Of course, there are many other factors that are personalised to each situation, but this should give you a good starting point.
If you, like many other rental property owners, decide you need to sell your property. You’re in luck, we buy houses for cash fast, and we offer fair prices! Fill out the form our website and we will be in touch to discuss how we can help you!