Tired of Being a Landlord? Sell Your Rental Property
Does It Make Sense To Sell Your Rental Property?
Being a landlord does not always make sense from a financial and quality of life perspective. Whether you stumbled into rental property ownership accidentally, or you have collected a portfolio of rental properties intentionally, there comes a time when every rental property owner asks themselves if the headaches and financial returns are worth it.
If you are having second thoughts about owning your rental property, we want to make sure you know about OfferMarket.
OfferMarket is a rental property investment platform. We and our network of qualified investors would love to provide you with competitive offers for your unwanted property. Requesting an offer for your rental property is free and comes with no risk and no obligation.
Financial Perspective
At the end of the day, owning one or more rental properties is a business. Your rental income is revenue. Your tenants are your customers. Your real property is an asset. Your mortgage and deferred maintenance are liabilities. The best way to judge the performance of your rental property business is to look at two things:
- the free cash flow that it generates
- the equity you have in your property
Free Cash Flow
Free cash flow is the cash your rental property generates after subtracting your mortgage principal, interest, taxes, insurance (PITI), property management, and your reserve for maintenance. If you self-manage the property, we recommend factoring in your time at the same rate that you would otherwise pay to a property management company. This is typically 5% to 10% of monthly rent and 25% to 50% of first month's rent for new tenant leasing.
If your rental property is generating negative free cash flow (i.e. you are losing money on a monthly or annual basis), then the property is likely not worth owning or one or more actions need to be taken to correct the situation.
- Raise rent
- Fill vacancies
- Refinance into a lower rate to reduce your interest payments
It is possible neither of the above is feasible. Perhaps the property has major deferred maintenance that needs to be addressed in order to fill vacancies or raise rent.
When you look at your annual free cash flow plus your equity appreciation divided by your equity in the property, you will get a clear sense of how your investment is performing relative to other investments. Most notably, relative to passive investments that do not take up your time.
For example: if your property is generating $5,000 per year in free cash flow and your property is worth $5,000 more compared to last year, and you have $100,000 of equity in your property, then your return is 10%. Compare that to the S&P 500's 10 year annualized return of 13.4%. Looking at it this way makes it difficult to justify owning and managing a rental property from a financial perspective.
Quality Of Life Perspective
Rental properties are not just financial investments, they are time investments. As we covered above, they are a business and they do not perform well with absentee owners. That's why we recommend factoring in the cost of your time if you self-manage your property. Even if you use a property management company, you're still ultimately responsible for managing your rental property. Finding a great property management company can be easier said than done, and a low percentage of property management companies perform to a satisfactory level.
If you're retired and you want something to keep you busy, owning and managing rental properties might fit in great with your lifestyle. If you're retired and you want to travel or reduce stress, owning rental properties might not be an ideal situation.
If you own one or more rental properties and you are worried about leaving your loved ones with an unwanted responsibility when you pass on, it might make sense to cash in on your rental investment.
Most common reasons to sell your rental property
Drawing on the above concepts and adding one final point to the list, here are the reasons why landlords get tired of owning a rental property:
- Financial returns are inadequate
- Quality of life is negatively affected
- Political and economic factors
To this final point, we can look to the #rentstrike movement brought on by the major economic shock caused by the COVID-19 pandemic. Landlords, especially "mom and pop landlords" are getting squeezed by a moratorium on evictions, and a growing resentment towards landlords.
Next Step: Get Competitive Offers
If you are tired of being a landlord, you are not alone. Either you know for sure you want to sell your rental property or you are still trying to figure it out.
Regardless of which camp you are in, you can request offers with no obligation. We would love to buy your rental property.
If you want to become a great real estate investor, these foundational investing books will pay divi...
One of the most important concepts that real estate investors and savvy homebuyers use is to buy on ...
Licensed HVAC contractors Baltimore directory....
OfferMarket brings you a comprehensive list of premier property management companies in Montgomery c...
Every seller has a Sell My House Fast story to tell. Meet Dan, who sold his house in Parkville, MD i...
Would you buy a rental property for $100,000 ($30,000 + $70,000 renovation) that generates $2,067/mo...
Facebook Groups are an excellent place to houses for sale. If you're looking for off-market listings...
List of reputable Calvert County property management companies. This list will help any busy landlor...
Every seller has a Sell My House Fast story to tell. Meet Darren, who has sold 5 rental properties w...
As a busy landlord, sometimes its hard to manage your real estate rental portfolio, OfferMarket brin...
Tired of being a landlord? It has never been easier to sell your rental property for a competitive p...
If you a tired landlord who just needs you business to be handled with no issues, look no further. O...
Directory of licensed architects and professional engineers (PE) in Baltimore....
These are the best podcasts for aspiring and proven real estate investors....
Comprehensive guide on preserving the value of your home. Detailing how to avoid common pitfalls of ...
Searching for a reliable property management company in Prince George's County? This comprehensive l...
Selling a rental property can be tricky depending on the property's condition, occupancy and your ti...
Luxury Redefined Episode 1 features 5505 Stuart Ave, Baltimore, MD 21215. A distressed listing with ...
Every seller has a Sell My House Fast story to tell. Meet Jason, who received 14 offers and closed i...
Dependable property management company is what every busy landlord needs. This list present the most...
As a busy landlord, sometimes its hard to manage your real estate rental portfolio, OfferMarket brin...
Introducing OfferMarket Portfolio deals. Passively invest in single family rental properties, sell w...
Opendoor competitors include OfferMarket, Offerpad, Zillow Offers and RedfinNow. Learn more about ho...
In this episode of the OfferMarket Podcast, Daniel and Martin share their origin story, the story of...
OfferMarket brings you a list of leading property management companies Harford county Maryland. Thes...
OfferMarket presents list of reputable Baltimore City property management companies. This lists give...
With housing inventory at record lows, savvy real estate buyers are looking off-market. Learn more a...
Zillow abruptly stops iBuying citing operational challenges. Let's read between the lines and see wh...
Learn about Zillow Offers competitors and how the iBuying service compares to Opendoor, RedfinNow, O...
Looking to sell your house For Sale By Owner? See how top For Sale By Owner websites compare....
OfferMarket launched on Product Hunt! This is a post on how not to launch on Product Hunt....
Every seller has a Sell My House Fast story to tell. Meet Jessica, who saved $11,500 by selling with...
What is RedfinNow? Where is RedfinNow available? Who are RedfinNow competitors? Your questions answe...
Landlords in Allegany county, pay attention. This list of Allegany county property management compan...
If you're looking for articles about iBuyers, Power Buyers -- there's a good change Mike DelPrete's ...
If I want to sell my house fast, I also should want to sell my house for as much as possible. This a...
OfferMarket is now the fastest growing investment property marketplace. Learn more about OfferMarket...
Professional contractors are hired to improve your home, but the liability that they bring along is ...
Real estate private lenders help fix and flip and rental property investors scale. There's a lot to ...
See OfferMarket in action: the most powerful dispositions tool for real estate wholesalers, landlord...
We are all used to paying our rent using cash or check, but this its 2022 and technology has moved f...
Every day is 'We Buy Houses' day at OfferMarket. How does we buy houses work? Learn more....
Deal or no deal? We asked 180 rental property investors if they would do this deal. Rental investmen...
Stewart Beal joins us to talk about his "super size house hacking", BRRR, property management and hi...
In this episode of the OfferMarket Podcast, Daniel shares everything you need to know about turnkey ...
These are the Reddit real estate communities you should know about....
A private lender data feed helps real estate investors access capital to fund new projects and refin...
Real Estate Wholesalers Near Me is a director of wholesale real estate providers. Find real estate w...
Every day at OfferMarket is 'Sell My House Fast' day. It's not about how fast you can sell your hous...
A real estate marketplace is an online platform that allows homeowners to list their house for sale ...
In this episode of the OfferMarket Podcast, Brandon Diaz shares his principles for successful real e...
A practical guide on how to sell a condo online using the latest tools in Real Estate in todays econ...
Every seller has a Sell My House Fast story to tell. Meet Neil, who saved $23,500 by selling with Of...
We surveyed 50 real estate investors to find out where they sourced their last deal (MLS or off-mark...
Checkout the top Anne Arundel county property management companies that will help any busy landlord ...
Plumbers near me in Baltimore. Access our growing directory of active licensed plumbers....
Looking for Sundae competitors? If you need to sell your house fast, this article compares Sundae vs...
Analyze the data on how COVID-19 is affecting multifamily real estate valuations....
Learn how housing supply shortages and increased demand are affecting home buyers and sellers. 99% o...
Learn more about investing in Baltimore rental properties....
Licensed electricians near me Baltimore directory. There are 263 active licensed electricians in Bal...
11% of houses sold in 2018 were For Sale by Owner (FSBO) listings. That is 605,000 homes and roughly...
In a world of low interest rates and inflated asset values, high cap rate rental properties make for...
Offerpad competitors include OfferMarket, Opendoor, Zillow Offers and RedfinNow. Learn how these ser...
Two houses with identical floor plans and similar quality finishes were listed in a desirable Baltim...
When a house isn't selling, it's important to take a step back and use a data-driven approach to und...
Take your real estate knowledge to the next level. These are the best real estate blogs that we beli...
Licensed home appraisers and home inspectors Baltimore directory. There are 225 active licensed home...
In the future, real estate transactions will not involve agents....
You have options when you sell your house. Compare the options to see which is best for you: On-Mark...
A data driven perspective of mortgage forbearance and foreclosure trends and the health of the U.S. ...
Fix and flip loans are short term hard money private loans for real estate investors (aka "flippers"...
Looking for licensed home improvement contractors in Baltimore? There are 1424 actively licensed hom...
These are the best real estate twitter accounts to follow. If you're on Twitter and you're intereste...
Every seller has a Sell My House Fast story to tell. Meet John, who received 3 offers in 24 hours an...
The fastest growing cities in Texas include Frisco, McKinney, Round Rock and Pearland. See the full,...
Location, location, location is the most famous mantra of real estate. This article dives deeper to ...
