4 Ways to Reduce Your Rental Property Holdings In 2022
It’s been a great run, but now it might be time to think about reducing your rental property holdings. Why? Changing mortgage interest rates and low inventory for houses make it increasingly difficult to sell properties at a price that will cover your costs. If you’re nearing retirement or would like to focus on other income streams, read on for some tips on how to make the transition as smooth as possible.
1. Evaluate Your Holdings and Make a Plan
The first step is to inventory all of your rental properties and assess how much work they currently require. If you have a lot of properties that are in bad shape or require a lot of ongoing maintenance, it might be more challenging to sell them off. In this case, you might want to consider selling off a few properties at a time to ease the transition.
2. Get Your Finances in Order
Make sure you have a solid financial plan in place before you start selling off your rental properties. Have an idea of how much money you’ll need to cover any costs associated with the sale (for example, real estate agent fee and closing costs) and how you’ll replace the income from your rental properties.
3. Prepare Your Properties for Sale
If you’re planning to sell your properties, you’ll need to ensure they’re in good condition. It means repairing any damage, repainting, and cleaning up any messes. You might also want to consider staging your properties to make them more appealing to buyers.
4. Find a Real Estate Agent
When it comes time to sell your properties, you’ll need an excellent real estate agent to help you. Make sure you interview several agents. Again, find someone who has a lot of experience selling rental properties.
Here Is What to Do Next
Reducing your rental property holdings can be a complex process, but you can make it as smooth as possible if you plan and take the necessary steps. By evaluating your holdings, getting your finances in order, and preparing your properties for sale, you’ll be well on your way to selling off your rentals.