If you own a rental property in Pittsburgh, you're likely to think whether continue owing it or selling it on the market. Sure enough, you would want to hold your property for one obvious reason: your rental property generates passive income.
Still, if you're thinking of selling your rental property, here are ten factors to consider before making a decision:
- When your rental property ceases to generate a healthy cash flow, it becomes an untenable financial burden. Crunch the numbers to see if the rent covers all of your expenses. Also, when doing this, make sure to include EVERYTHING related to the cost of the home. This should include the mortgage (if it still has one), taxes, maintenance, and any other costs.
- The neighborhood isn’t what it used to be. If you’ve owned the property for a certain period of time, there’s a good chance the neighborhood has changed. After all, few things remain the same in this world over time. It might be time to ask, “Has the neighborhood changed for the better or worse?” If it’s the latter, now might be the best time to jump ship.
- You’re tired of being a landlord. Being a landlord is difficult. You have to be vigilant to make sure your property is well maintained. Moreover, you are the first point of contact when dealing with tenants. As every landlord knows, when tenants are contacting you, it’s rarely to wish you “good morning.”
- Building off the previous point, perhaps you’re tired of dealing with bad tenants. Horrible tenants can wear anybody out. If this is your scenario, check out a previous blog post discussing this specific situation.
- You’re continually dealing with bad or incompetent property management companies. Some property owners opt to take a hands-off approach as landlords. They would prefer employing a property management company to look after their rental. Aside from the costs involved, working with a poorly-run property management company can become tiring.
- Your home is old. The older your home gets, the less attractive it can look to prospective tenants. You can obviously sink some money into the home with updates but this only makes sense if these expenditures are too costly.
- The home is in need of too many repairs. Need a new roof? Do the windows need updating? Are there cracks in the foundation? If there are repairs on the horizon, especially major ones, now might be a good time to sell.
- Your IRS depreciation benefit has run out or it’s about to run out. This is all about saving money on your taxes but these savings eventually come to an end. For a better explanation, check out this post by the Financial Samurai who breaks it down mathematically and advises you to sell your property once the tax benefit runs out.
- Time is money. Are you spending an excessive amount of time tending to your property? If your rental property is earning you a sizable income, then it might make sense. If not, could your time be better spent doing other things? Perhaps pursuing better moneymaking opportunities?
- You’re no longer interested in owning the property. This is purely an emotional reason. Maybe you’re just tired of the home and would prefer to use any money generated from a sale for something else whether it be for traveling, paying off debts, dealing with a medical situation, or any number of reasons.
If owning your Pittsburgh-area rental property continues to be both a financially and emotionally positive experience for you, then you should continue owning it. However, if you wish to sell your property, we would welcome the opportunity to speak with you.
All Cash For Homes PGH is a Pittsburgh-based real estate investor. We use a fast and simple process to buy houses. Because we aren’t a real estate agency. We never charge any agent commissions, which can run as high as 6% of the sales price. We also don’t charge you for any other incidental fees or closing costs.
After you contact us, we’ll present you with a free, no-obligation cash offer on your rental property. You are welcome to reject or accept our offer. There is never any pressure but, if you do accept it, we’ll pay you with cash and buy your property as-is. You don’t need to make any repairs and we normally close within 30 days.