Being a property owner can be very challenging as well as frustrating at times. Are you thinking it might be time to get rid of your Detroit rental property? In this post we will go over some tell-tale signs that it’s probably time to sell and move on from the situation altogether. If you are on the fence about selling then the information that we are providing should help bring some clarity so you can make the best decision possible. Let’s determine if it’s time to get rid of your Detroit rental property.
A High Turn-Over Rate
Tenants come and go and after a while it can seem like a revolving door. Sometimes a renter might have employment issues or something related to their income. Other times they might simply break the lease and be very unethical. A good long term tenant who pays their rent on time can be like trying to find a needle in a haystack. There are also a lot of costs that come with having a high turn-over rate of tenants. Costs such as marketing for new tenants and keeping the property secure while it’s vacant. Every month that passes and the property sits empty, you are losing money! If you are having these problems it’s a great idea to sell your Detroit rental property!
Tired Of Paying For Repairs
It’s highly unlikely that a renter will ever treat your property as if it was their own. At the end of the day they are only there temporarily. Rental properties tend to go through a ton of wear and tear especially if your tenants have children or teenagers living in the house. Things will be broken or destroyed over time and it can cost you a lot of money as an owner. These days there are annual rental property inspections in Detroit that the property must pass. Things must be up to the standard of city code so you can get your certificate of compliance. If these repair costs are becoming a burden, it’s probably time to sell your property and be done with it.
It’s Not Cash Flowing
As a rental property owner, technically you are a business owner and if a business is not making money it is not a good business. Many variables come into play when it comes to cash flow. Things such as property taxes, insurance, maintenance, management, vacancies, evictions among other things. All of these components add up very quickly and some properties turn out to be lemons. If your rental property in Metro Detroit is not cash flowing it’s probably in your best interest to sell it quickly to hedge your losses.
The Neighborhood Is Getting Worse
It’s unfortunate but some neighborhoods can go downhill and in turn, it can lower your property value. Sometimes all it takes is one bad apple to spoil the bunch and ruin a neighborhood. If drug dealers or gangs have started moving into the area and crime has gone up then that is a sign it’s time to sell your house. Even things like bad neighbors who don’t upkeep their lawns or have a bunch of junky cars in the driveway can hurt your property value. If the police are constantly being called out to one of your neighbors homes because of domestic issues that is a sign to sell quickly! If you wait too long it might be even harder to sell your property and you may get low ball offers.
You Owe Back Taxes On The Property
If your property taxes are delinquent and you are behind by a few years you might be facing foreclosure if you don’t take action soon. The interest and fees can add up quickly and snowball into a major problem. If you are at least 2 years behind on paying your property taxes it’s probably better to sell now. If you sell your property you can avoid tax foreclosure and possibly still walk away with some cash!