There are many reasons why you might be ready to sell your New Jersey rental. With the spring cleaning season upon us, new properties are hitting the market every day and much of the country is seeing a seller’s market. It might be time to evaluate your current situation with your rental property and ask yourself if it’s time to consider selling the property.
Any kind of rental property requires work as you know. Are you enjoying this process? Managing a property includes finding tenants, collecting rents, handling repairs and dealing with all the little demands of property management. This can be very time consuming. Does your current lifestyle allow for property management? Do you have still time for that?
Other considerations are expenses. These could include the mortgage payments, taxes, insurance, utilities, gardeners and other unexpected repairs. Rental property owners must also budget for late rents and vacancies. What has the trend been for your New Jersey Rental Property? If you find that this is becoming more difficult to predict and plan for, you might be ready to sell the property and realize any profit the property can offer.
A New Jersey rental property owner should regularly evaluate the health of the rental market. What can you reasonably expect in the next couple years in rent? With interest rates so low, more and more renters are finding they are able to purchase homes, has this affected your rental rates?
One final consideration is how easy it is for you to manage the home. Not just the potential hassles we’ve discussed, but how close do you live or work from the property? Is your rental property close enough to your main home or place of business to manage properly?
Selling a New Jersey rental property is different from selling a single family home. Even if the property is a house with one tenant, showing a rental history could attract a higher purchase price than a typical primary residence sale. If you have found that the cost of your investment property has become too high….either in dollars or time….then it is time to investigate the value of the property. Once you have a fair market value for the property and rental income trends, you will be able to make an informed decision about whether to sell your New Jersey Rental Property to keep it.