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If you own several rental properties, you may feel overwhelmed. It is a lot of work to take on and it is something that could be wearing you down, even though you likely enjoy the money you are earning from rental properties each month. If you are thinking about selling your rental investment portfolio, you should not rush into making any major decisions. You will need to think of the advantages and disadvantages of selling, along with determining when it is the right time to make the sale.
The Advantages Of Keeping Your Rental Portfolio
Before you even think about selling, it helps to think of some of the different advantages that come along with keeping your rental portfolio for as long as you can. As someone who owns multiple properties by investing in real estate, you may receive steady passive income rather than working a traditional 9-5 job, which could be far more convenient for you. While there is still plenty of work involved, as you may already know, it likely feels good for you to be able to rely on the money you receive from each property instead of worrying about when you will get paid next.
Aside from earning that passive income, you get to decide what to charge your tenants. If the real estate market is booming in areas where your properties are located, and the different rentals are in demand, you could increase the asking price for rent. If the rent price increases, you are adding more money to your pockets. The idea of being able to earn even more money over time could keep you motivated enough to want to keep the properties you already own rather than selling them to someone else.
Selling a rental property can take time because you need to find a good buyer. If you do not want to waste time going through this process, keeping your portfolio for the moment makes more sense.
The Advantages Of Selling The Rental Portfolio
While there are plenty of good reasons to keep your rental portfolio, there are some reasons to sell it, too. Once you make the sale, you no longer need to pay property taxes because that would become the responsibility of the new owner(s). As someone who owns multiple properties, you have likely noticed how much money the government tends to charge in property taxes. It adds up and it can get expensive, which may be an issue for you.
In addition to no longer dealing with property taxes, you could avoid dealing with all the different issues tenants may have at some point. Even if you have a property management franchise, you have likely had to come up with solutions for numerous problems, especially if something stops working or if your tenants are having issues with one another in multi-family buildings. If it is becoming way too much for you to handle on your own, selling could be the right decision for you.
Once you decide to sell your portfolio, you can get a decent amount of money for all the different properties. If you save that money and spend it carefully, it may be enough money to hold you over for the rest of your life, so that is something you should think about.
The decision to sell or keep the rental portfolio you have is entirely up to you. You will need to think of these different advantages and disadvantages and then decide what would work well for you based on the way you are feeling. If you are overwhelmed, exhausted, and ready to call it quits, selling may be a feasible option. However, if you want to continue earning steady passive income and would like to have the opportunity to increase prices and earn even more over time, keeping your portfolio for the time being may be the right decision for you to make.
