7 Signs It May Be Time to Sell Your Rental Property

Owning rental property is a great way to build wealth, but – as they say – the only constant in life is change. Your personal circumstances, the economy, world events, etc., are constantly changing, and any one of these changes may have you thinking it might be time to sell your commercial property.

Signs It May Be Time to Sell Your Rental Property

1. You don’t want to be a landlord anymore. Managing a property takes time and can be frustrating at times. You need to advertise the rental, screen applicants, collect rent, maintain the building, make repairs as required, respond to tenant complaints, and sometimes evict tenants. After multiple phone calls in the middle of the night from tenants or tenants who are chronically late with their rent payments, you may decide you don’t want to be a landlord anymore, and it may be time to sell your rental property.
   
   
2. The value of your property increased. Maybe you were lucky or smart enough to purchase a rental property in an up-and-coming neighborhood, and the property values have shot through the rough. Or perhaps you just got a great deal when you bought the property or made a few improvements, and now the value of your property has significantly increased. If the profit you would receive from selling it outweighs the profit from rent payments, it may be time to sell your rental property.
   
   
3. Your profit is declining. If you discover ongoing maintenance issues, falling rent prices, or extended vacancy in your property, you may see your profit declining. If your profit doesn’t meet your goals, it may be time to sell your rental property.
   
   
4. Your property needs too much maintenance. Every property needs some maintenance and occasional updates. However, if you discover you’ve purchased a money pit that is bleeding you dry in maintenance costs or a building you’ve owned for years is getting older and needs more repairs and possibly a face-lift, it may be time to sell your rental property.
   
   
5. Your life has changed. If you experience any life changes – a marriage, a divorce, an injury, a move, etc. – you may have less patience, time, resources, etc. to manage a rental property. If you find a life change is making managing a rental property a burden on you – emotionally, physically, financially, etc. - or simply something you no longer want to do, it may be time to sell.
   
   
6. Property taxes have drastically increased. Anyone who owns property in Pennsylvania is required to pay property taxes, and unfortunately, PA property tax rates are higher than the national average. In Berks County, the property tax rate is determined yearly, and you have little control over whether that rate goes up, down, or stays the same. In July 2023, the Reading Eagle reported, “10 Berks School Districts Raise Property Taxes.” If property taxes drastically increase, eating into your profit, it may be time to sell your rental property.
   
   
7. Your investment goals have changed. Investing in real estate offers many benefits – tax benefits, leverage, and a hedge against inflation, but it is also a non-liquid, long-term investment. If your investment goals change, investing in mutual funds, money markets, CDs, treasury bills, etc., may better suit your new goals, making it a good time to sell your rental property.

Are You Ready to Sell Your Rental Property?

If you’ve concluded it’s time to sell your rental property, you can’t do any better than real estate agent Pete Heim. His 25+ successful years of selling real estate in Berks County will help ensure your property sells quickly and at a great price.  

Contact Pete and his team today at 610-745-3378 or 610-898-1441 or connect with them online.