Owning a rental property may be more taxing than many anticipate. Here are some signs that you may be ready to sell.
Why did you become a landlord?
Landlords get into real estate by accident, out of necessity, and on purpose. Owning a rental property is a fantastic way to generate passive income, especially if you have another job. You aren’t constrained to the typical 9-5 job that many Americans have. More free time means more time doing what you really want to do. But, being a landlord isn’t always as great as people make it out to be.
If you’re currently on the fence about whether or not you should sell and move on, here are 5 signs that you’re sick of being a landlord.
1. Maintenance is becoming a hassle
Owning and managing a rental property is harder than you think. Being a landlord means finding the right tenants, collecting rent, and much more. While this may seem like an easy way to make passive income, the task is much more complicated than it sounds.
Regular maintenance can become a more daunting task than you may think. Since you own the property, your tenants are not financially responsible for major repairs. You are responsible for covering the cost of repairs. If you’re close to retirement, regular maintenance on your rental property may become more physically demanding than it once was. You got into real estate to retire and collect passive income, not to be an active manager.
Landlords incur fees and expenses over time. Here are a few expenses landlords need to budget for:
- Tenant screening costs
- Property management fees
- Repairs and maintenance
- HOA dues, taxes, and insurance
- Legal fees
Read more: Your Quick and Easy Guide to Home Maintenance
2. You want to cash in on equity
In terms of property investing, property appreciation is the name of the game.
It’s no secret that the housing market has exploded over the last few years. According to the National Association of Realtors, two-thirds of U.S. metropolitan areas reached double-digit price appreciation in the fourth quarter of 2021. This trend is expected to continue throughout 2022. If your property value has increased significantly since you purchased it, now may be the time to cash out.
3. Tenant issues
Bad tenants can be a landlord’s worst nightmare.
The tenant screening process may not always give you an accurate understanding of who wants to rent your property. Some challenging tenants can slip through the cracks.
Few things are more frustrating than having a tenant who is late on rent payments. Landlords have to spend a lot of time tracking down late rent checks. Not only is this frustrating, but it takes away time that can be spent on other responsibilities.
Do your tenants make a lot of noise? Noisy tenants can be a headache not only to landlords, but to neighbors and law enforcement. Neighbors may call you to take care of the issue since you own the property. If noise persists past 10pm, annoyed neighbors may call the police and you may have to go to the property to deal with them.
Some states have restrictive tenant laws. In fact some states may have laws pertaining to:
- Limiting rent increases
- Eviction clauses
- Late fees
Depending on where your rental properties are, landlords may be mandated to be registered and licensed with the state before accepting tenants. Laws and regulations like these make evicting a bad tenant difficult, not to mention costly.
There is no question that dealing with bad tenants can take its toll on landlords. The best way to avoid the headache of tenant issues is to sell your rental property and avoid them altogether.
Related: Sundae Customer Story: Finding Tranquility
4. You’re sick of interrupted nights and weekends
One reason being a landlord is great is because it is a great alternative to a 9-5 job. You’ll have more free time on your weekdays to pursue your own interests. But, the extra free time comes at a cost. Unlike your typical 9-5 job, you will have to work nights and sometimes weekends. That’s the untold truth about being a landlord that is often overlooked.
Small issues and problems can arise at your rental that may demand your immediate attention. A broken pipe on a late Friday night can’t wait until Monday morning to get fixed. Your tenant might misplace their keys and needs you to bring a replacement after a long night out. These small problems may not seem like much, but over time they can add up.
You could learn to cope with dealing with the aches and pains of being a landlord, or you could forgo the headache entirely and sell as is.
5. You’re ready to move on
If you’ve decided to make a change in your life and being a landlord is not part of your plan, selling your rental property should be the first step.
Maybe you’re ready to move into the next chapter of your life. Selling your rental could be the first step into your new future. If retirement is just around the corner, now might be the time to prepare for your leave from the working world. With your rental sold, you’ll be able to rest easy knowing you won’t have to deal with the aches and pains of being a landlord anymore.
If you’re ready to move on, you’ll need to find a buyer. Depending on your buyer, you may need to vacate the property of tenants and personal belongings. This process may change depending on who you ultimately sell to. But, if you would like to avoid another headache, consider selling as is on Sundae’s marketplace. We connect you with investors on our platform who compete to purchase your property. The best part? You can sell your rental as is. No need to make repairs or update the appliances. We’ll help you sell on your timeline and will help you every step of the way.
See more: Considering Retirement? 3 Things an Economist Wants You to Know
Selling with ease
Get in contact with a Sundae Market Expert to find out if Sundae can help you get the best price —fast — for your inherited home. Review how the step-by-step process works and then get started in the process to sell your home as-is for cash today.
Zach Child is a recent graduate from the University of Washington with an interest in digital marketing strategy. At Sundae, Zach is part of the team that distributes editorial content across social channels and is responsible for the creation of visual content that helps grow Sundae’s brand.