Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

15 Signs You Should Sell Your Income Property in 2022

By Maurie Backman - Oct 31, 2022 at 4:27PM
A two-story brick home.

15 Signs You Should Sell Your Income Property in 2022

Moving quickly to sell could benefit you in many ways

Owning an income property can be a lucrative endeavor. But it can also be a stressful one, and you're not guaranteed to make money. And if that's the case, or if you're not happy being a landlord, you may want to get out. Here are a few signs it's time to sell your income property before 2022 comes to a close.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Previous

Next

Person doing calculations in a notebook.

1. Your property is losing money

The point of owning an income property is to make money. If the opposite is happening for you, then it's pretty much a no-brainer. You should cut ties with your rental home and find a buyer so you can pursue other opportunities.

Previous

Next

Notebook with Property Tax written and underlined in orange on its cover.

2. Your property taxes have soared

Property taxes can be a huge expense for real estate investors. If yours have risen a lot since purchasing your income property, you may be at the point where you've had it. In that case, it may be time to sell and make those taxes another owner's problem.

ALSO READ: 10 States With the Lowest Property Taxes

Previous

Next

A pair of glasses and a magnifying glass atop a document that says Insurance Policy.

3. Your insurance costs are up

When you own any type of property, it's important that it be adequately insured. But if your insurance costs keep rising, it may be time to sell your income property. High expenses can eat into your profits, making that property not worth hanging onto.

Previous

Next

Property manager showing a rental property to a family.

4. Your property management fees are rising

Some income property owners manage their rentals themselves. Others outsource the work to a property manager. But if your property management fees are becoming unreasonable, it may be time to sell.

ALSO READ: Managing a Rental? 6 Reasons a Property Management Company Is the Way to Go

Previous

Next

A red push mower on a lawn.

5. You're spending too much money on maintenance

Owning an income property can mean spending extra money on its upkeep. Now, you may have budgeted a certain amount for maintenance when you first started renting out your income property. But if your maintenance costs are getting out of hand, you may want to sell.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Previous

Next

A person using a screwdriver to adjust a French door.

6. You're spending too much time on maintenance

Maintaining a home doesn't just take money -- it also takes time. If you no longer have enough to dedicate to your income property, you may want to sell it sooner rather than later. This especially holds true if you've priced out options for a property manager but can't swing one.

Previous

Next

Person repairing a heater.

7. You're worried costly repairs will soon arise

As homes age, repair issues tend to crop up. If you're concerned about potential repairs in the next year, you may want to sell your income property before you wind up on the hook for costly fixes. And even if your income property is in decent shape now, you may want to sell before that changes.

ALSO READ: Tired of Raiding Your Savings for Home Repairs? Try This Instead

Previous

Next

A suburban street with numerous houses for sale.

8. Your income property is in an area that's saturated with rentals

The more properties available to rent in a given area, the less leeway landlords get to charge a premium. It may be that when you bought your income property, there wasn't a lot of competition. But if new rentals have since popped up, you may decide it's time to sell.

Previous

Next

Person looking stressed while using a laptop.

9. You're tired of dealing with tenant complaints

Managing tenants is one of the most challenging components of owning an income property. If you're tired of doing that, it may be time to sell. That way, you won't have to deal with the aggravation.

ALSO READ: 15 Ways to Score the Best Tenants for Your Rental Property

Previous

Next

Person typing on a laptop at a desk.

10. You're ready to invest in other assets

Maybe your income property is fairly easy to manage. It may even be turning a nice profit for you. But if you're ready to put money into other types of investments, then selling your income property could be a good way to come up with the cash.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Previous

Next

A white stone home with a For Sale sign with Sale Pending added.

11. You want to command a higher price for your income property

Right now, property values are up on a national level. But we don't know how long the housing market will stay that way. If you sell your income property soon, you can capitalize on today's higher home prices.

Previous

Next

People in front of a home that is for sale.

12. You want to take advantage of a housing market with less competition

Right now, the U.S. housing market sorely lacks inventory. If you sell your income property now, you might end up with a higher offer due to a lack of options for sellers. If you wait to sell your income property, you might get less for it once more homes start hitting the market.

ALSO READ: Housing Inventory Is Creeping Back Up. Here's What Buyers and Sellers Need to Know

Previous

Next

Mortgage application with red Approved stamp.

13. You want to sell before mortgage rates push more buyers out of the market

Although mortgage rates are quite high right now, they could climb even higher in 2023. If you sell your income property now, you'll get ahead of that issue. And that could spell the difference between finding a buyer or not.

Previous

Next

Stressed person sitting on a couch.

14. You're worried a recession will hit in 2023

For months, financial experts have been warning that a recession is coming. And if one hits, the demand for homes could shrink. If you've been considering selling your income property, you may want to get ahead of an economic downturn by listing that home now.

ALSO READ: Will a Recession Cause Home Prices to Plunge? Not Necessarily

Previous

Next

For Rent sign in a hedge outside a home.

15. You'd rather buy a new income property with more money-making potential

Maybe you've had a good experience as an income property owner. But if you're ready to upgrade to a larger rental or are eager to own a rental in a different market, it pays to sell your current one. Although selling a home can be a stressful, time-consuming prospect, it could pave the way to a world of opportunity.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Previous

Next

Smiling person sitting at a desk.

What's the right call?

Whether you're unhappy with your income property or are simply ready to move on, there are plenty of good reasons to put that home up for sale ASAP. Think about the pros and cons of selling now versus waiting to arrive at your choice. Also, think about whether you're ready to move on from being a landlord to explore other investments instead.

The Motley Fool has a disclosure policy.

Previous

Next

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.