More than 71 percent of landlords in the US are individual investors. Many of them manage their properties independently, which takes a lot of time and energy.
Have you had a string of problematic tenants, and you’re tired of dealing with complaints? If you’re thinking about selling your property, you’re not alone. Here are some of the reasons why landlords are considering selling.
Housing Prices Are High
The housing market has been extremely active since 2020, and buyers are bidding up the price of housing. If you’ve been a rental landlord for a long time, it’s tempting to sell and collect your profits.
You may worry about a bubble in the housing market. Usually, a market crash follows a bubble, and some rental landlords see this as the right time to exit the market.
It’s a Seller’s Market
Many individuals and businesses want to buy real estate investments. It’s a seller’s market and an opportunity to get a reasonable price for your rental property. There are many cash offer home buyer opportunities advertised online.
Most landlord properties are selling for a good price, and the sale can complete on the same day. Lots of these buyers are ready to purchase homes even if they are in poor condition. The seller doesn’t have to spend any money on repairs.
Property Management Is Tiring
Real estate investing is a wealth-building opportunity. There are tenants to screen and background checks to do. If you make a poor choice, it isn’t easy to collect the rent, and you might need to evict the tenant. It’s also a lot of work to manage your property yourself.
Some landlords and tenants have a great relationship, but some tenants can do a lot of damage. Repairs take time and cost money. You might lose a month’s rent during repairs. Eventually, landlords get tired and want to get out of the business.
Some Landlords Are Retiring
A large percentage of landlords in the US are more than 40 years old. Many of them have other investments, and some are nearing retirement. They can sell their rental properties and add the money to their retirement savings. In some cases, the additional savings will allow them to meet their retirement goals, and they’ll be able to retire early.
The Impact of Eviction Moratoriums
During the pandemic, the government imposed a moratorium on evictions. Landlords were no longer allowed to evict tenants for non-payment of rent. This put small landlords in a challenging position as most of them relied on rents to make their mortgage payments.
While some tenants are eligible for federal assistance to make rent payments, many have not applied. Landlords are left holding the bill, and many can’t hold on much longer.
Landlords Have Exit Options
When you weigh the pros and cons of owning a rental property, you may understand why many landlords are considering selling their properties. It comes down to a series of trade-offs, and your choice will depend on your personal circumstances.
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