What to do with a rental property that is not performing. Hey, y’all. It’s Nick with Sell My San Antonio House. I talk to a lot of people who have a rental property, or somehow ended up with a rental property and it’s just not performing like they want. What do you need to do? You need to ask yourself two questions.
The first question is, why is it not performing as I want?
Why?
It’s probably one of a few things. My tenant’s not paying. Am I having trouble getting tenants into the property? Are the repairs eating my lunch? Or do I have a loan that’s costing me money along with the taxes that keep going up and I cannot make a decent spread in there? All right, really drill down, figure out why yours is not performing.
Then the second question is even more important. Is this really what I want to be doing?
Because lots of times people think they may want to be a landlord, and then, hey, this wasn’t quite as much fun as I thought it was going to be. Sometimes you end up being an accidental landlord where you just kind of end up with this property and you’re like, “Okay, well, renting it out sounds good.” Doesn’t turn out to be that great. Or maybe you’ve been renting one a long time and you’re like, “Man, I really don’t want to be doing this anymore. I just don’t want the headache.” If that’s the case, stop. Sell the property. People sell them all the time. We buy them all the time. So you’re not stuck on something that’s not performing and having to keep it as a rental property just because it’s a rental today.
If you do want to keep it, then drill down on that issue. Is it the tenants? Are they not paying? It’s probably time to figure out a solution to move them along their way so you can get some great tenants in there who are paying. It’s also a great opportunity to raise those rents up to the market value if you’re a little bit behind.
Repairs are eating your lunch. Well, do you have deferred maintenance? Is it just keeping it up? Because there are usually not major repairs that are happening, happening, and happening, unless you let the property get way too far behind on repairs and such. If you have, then you got to decide, am I willing to do a total overhaul, or do I need to move on for this property?
Remember, if your rental properties are not performing as you want, STOP. Think about it. Ask yourself those questions. Really drill down on why it is not performing the way you want, and then really decide if you want to keep doing this moving forward or it’s better to move on from the property.
I hope this helps. If it does, do as a favor, hit the subscribe button, and give us a shout if we can help you with anything. (210) 201-6644, or sellmysanantoniohouse.com. Thank you.
Very helpful information!