Many landlords hold property as an addition to their full-time jobs. If these properties run themselves and constantly produce positive cash flow then consider yourselves among the lucky and fortunate. So often it seems sexy and is a topic to talk to your friends about when you own “investment properties”. If one or more aspects are not going well it may be time to unload that property.
1. PROBLEM TENANTS
Too many phone calls to you, not treating your property well, and issues collecting rent are big headaches.
2. NEGATIVE CASH FLOW
Your monthly income is less than your mortgage payments, tax bills, repairs, and utilities. It’s probably time to make a change.
3. REPAIRS ARE MOUNTING
Maybe your tenants haven’t treated your property well. Maybe the house is old and just hasn’t been updated in a long time. The longer these repairs go unfixed, the more likely you’ll have problems with your tenants and finding new ones to replace them.
4. YOU’RE BETTER OFF USING YOUR MONEY SOMEWHERE ELSE
Even if you’re making a modest return on your rental, maybe that money is better used somewhere else. Other investments could be more passive and offer the same return or better. If your main expertise is outside of real estate there might be investments you can consider using your particular skill set.
5. YOU ALWAYS PLANNED TO SELL
Did you become a “landlord by mistake”? Maybe you couldn’t sell your former primary residence after moving to a new house, maybe you inherited a house, or maybe you’ve already gained significant appreciation since you acquired the house. It might be a good time to simplify and sell the rental now.
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