Three signs you need to sell your rental property now
Category Landlords / Investors
Property is one of the best investments you can make but there are times when you need to sell your rental property instead of holding on to it. Think like an investor and make sure you're still getting the most out of your second home.
If you've paid your bond and have been leasing out your house, you know how rewarding it is to invest in property. But there comes a time where it may no longer make sense to continue renting out your place.
Watch our tips for making things easier and read on to find out how to take the effort out of selling your property:
Be aware of these tell-tale signs that you need to sell your rental property:
Sell it if... you're spending more and more on maintenance
As a landlord, you might be enjoying the benefits of a passive income from your property at the moment. But remember that the cost of maintaining your home can increase as time goes by.
If your house has aged considerably, it might be time to check how much you're spending on upkeep - and compare that to your income.
Be realistic about what it will cost to maintain your home in the years to come and decide whether it's worth the effort and expense. If it isn't, then it's simply time to find a newer property investment.
Sell it if... you struggle to find tenants because your property looks old
While classic architecture and well-built homes can stand the test of time and always have value, many properties just don't age well.
If you're struggling to find tenants, carefully consider whether the appearance of your house might be the culprit. Your home might have all the features that tenants are looking for, but if it's no longer aesthetically pleasing, leasing it out may become an uphill battle.
There are plenty of ways to improve the appearance of your property, but it's essential to carefully weigh up the cost of doing so against the benefits and potential increase in rental income.
In the event that revamping your property proves to cost more money and effort than what you'll eventually get out of it, it's time to move on.
There may be plenty of new developments in your area that offer great investment opportunities.
Battling to find tenants in 2020? Read our article about change in the rental market.
Sell it if... you've reached the maximum amount of rent you can charge
Most of the time there is a limit to the amount of rent you can charge for your property. There comes a point where, no matter how much you improve your house, no tenant is willing to pay more than a certain amount for the area or complex in which your home is situated.
If you've reached this ceiling and you're happy with the amount you're charging, then consider this: every year the cost of your levies, rates and taxes will increase due to both inflation and the cost of maintaining ageing infrastructure.
If you're unable to get more for your property in the coming years, your rental income will slowly start to drop.
This is a sure-fire sign that it's time to shop around for a new property that can offer a higher rental income, or even more than one rental home that offers a fair amount of income and low rates, taxes and levies.
Selling your rental property is the next step
Selling a home can be an emotional experience for landlords who have benefitted from their properties over the years. But the advantage of investing in a newer, more lucrative rental property far outweighs the benefits of holding onto a second home that's past its prime.
As a property investor, selling your house for a better investment is simply another step in your property journey - one of many exciting ones you'll take as you grow your portfolio.
In this journey, you should never be without a guide. Make sure you reach out to an estate agency with in-depth knowledge about the area in which you own property - and plenty of experience in helping homeowners become successful investors.
What NS Property Solutions offers
We've guided hundreds of homeowners along their journey to becoming successful property investors.
Most of our agents live in the areas in which they sell homes, making them the perfect partners to guide our clients in making the best decisions for their financial future.
NS Property Solutions offers free property valuations with the option to have virtual tours and professional photos taken of your house. We can also help you quickly and easily put the finishing touches on your home with our additional maintenance option. Find out more now.
Explore our investment properties here and learn how we find the best tenants for your new investment.
Reach out to us today to explore your property investment options. We're here to help!
Author: NS Property Solutions