In most cases, the right time to sell a rental property will vary with your personal interests, financial circumstances, time limitations, your current and future aspirations, and your income needs. There isn’t a golden rule for when landlords should sell what’s likely their largest investment, but there are some key points to keep in mind when making the final decision. Here are five to consider.
Do you like being a landlord or are you tired of midnight calls about leaky pipes and broken furnaces? Are you making money from the investment annually or is it a long-term investment that you project will be worth more when you sell? Do you have more demands on your time now, meaning the payoff isn’t worth the time required to manage your rental property? And what’s your annual and projected long-term rates of return on your investment.
You should also itemize your retirement income streams to find out if the income from the rental property is really needed. You may find that you have built up a large passive income stream in your other investment accounts, so you no longer require the income from the rental property to live comfortably.