15 Signs You Should Sell Your Income Property in 2022
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.
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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.
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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.
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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.
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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
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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.
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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.
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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
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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.
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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
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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.
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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.
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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
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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.
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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
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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.
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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.
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