If you happen to be a rental owner, there's a high chance you've put blood, sweat, and tears into managing the said property. While the investment might have been a smart one initially, perhaps it doesn't ring true today. There are many instances in which you are better off moving on from the property than keeping it in your possession any longer. Unfortunately, knowing just when to say goodbye isn't simple to determine. With that said, you are encouraged to take note of these 7 signs that suggest the time to sell your rental property has come.
1. The value of your rental property has increased
If the value of the property has drastically increased since the time you bought it, that may be a signal it's time to convert it into cash. This approach is especially favored by professional flippers, who purchase properties only to sell them for profit a short time later. While typical flippers don't usually turn to renting, a few of those do stick around long enough to venture into the process - which goes something like this:
2. The property is no longer generating profit
It doesn't take a genius to figure out that a property that doesn't bring revenue isn't one worth keeping. Of course, if you've only recently acquired your asset, perhaps you should stick around for a bit longer. After all, it does take some time for profit to show. However, if you've already been a landlord for a while and you've been in the red for months, it might be wise to sell your rental property. It's better to let go of it now than allow it to drain your savings any further.
If you truly are keen on sticking to real estate investing, though, put your money elsewhere. For example, into another Reno property that's bound to prove more profitable.
3. You are miles away from your rental property
When you live close to your rental, managing it doesn't seem all that complicated. Whenever the property requires your attention, you are just a short drive away.
However, as life is relatively unpredictable, sometimes, we must move away. This challenging time requires us to think about many things: our next living arrangement, the moving process, and last but not least, the property we currently own. As far as hiring movers goes, it's worth noting that reliability is the most important factor to consider. Always opt for a company that has considerable experience moving people across long distances, throughout the entire state of Nevada.
While the relocation process can be reasonably smooth, maintaining your property when you live miles away becomes all that harder. You can no longer be there to tend to issues and must rely on the help of others to make do. Selling is possibly the best choice, but if you wish to keep your asset, by all means, do it. Should that be your final decision, remember to seek out a professional Reno property manager.
4. You no longer wish to be a landlord
The thought of being a landlord doesn't excite you anymore? If you find this to be true, that's a tell-tell sign that you should sell your rental property, or actually, consider selling it.
Perhaps you are just tired of the amount of work that needs to be done around the property. Maybe managing it has occupied so much of your free time, which isn't what you initially signed up for. Or, you've stumbled upon trouble with your tenants. Whatever the case, if real estate investing no longer does it for you, it might be time to leave the game altogether.
5. Your rental property has begun deteriorating
The state of your current asset is such that it requires extensive repairs to become yet again profitable. Investing in a new roof in Reno, for instance, can cost you anywhere between 6,000 and 10,000 dollars. That's about a year's worth of rent down the drain! Instead of spending a fortune on fixing it all up, it's better to sell the rental ''as-is''. This is especially true if you are dealing with a somewhat older property. The potential for something going wrong grows with age, so parting ways sooner rather than later is recommended.
6. You set eyes on another property
New opportunities to invest in something, including properties, arise constantly. Maybe you've recently stumbled upon an asset that you believe could be worth your while. The only problem being that the lack of money is preventing you from acquiring it straight away. However, if you sell your rental property now, you'll have just the amount you need to fund the new investment. But pause for a minute: are you aware of what you're getting yourself into? Is the potential of obtaining higher profits with the new property truly that great? Is it that great that it makes saying goodbye to a rental that's already been bringing you constant cash flow reasonable? Ask yourself these questions before reaching the final verdict.
7. Circumstances surrounding your life have changed
At the time you purchased your investment property, you couldn't have possibly known something in your life would change. While you would want nothing else but to keep your property, certain events could make you question that decision, including:
Clark Real Estate
305 W. Moana Ste C
Reno, NV 89509
Reno Property Management