There are many reasons you may want to start downsizing your rental property portfolio. You may find out that you got in over your head, and you are struggling to get the day-to-day tasks done. You may also want to start thinking about retiring, so you can enjoy your golden years. Furthermore, you have made enough money with your real estate business that you can easily think about working at a more relaxed pace, if you need to work at all!
So, how can you start downsizing your rental properties?
You may want to sell some of your properties outright. If the real estate market is in good condition, you may be able to sell some (or all of your properties). Though you will lose your monthly income, you also won’t have to worry about your rental properties anymore.
Another option that you may want to consider is to hire a property management company. If you want to continue to make money off of your rental properties, without doing the work, you may want to hire someone to take care of them for you. You can pick and choose what tasks you want them to do, and what you will continue to do. You may also decide to hand off all of the responsibilities. Though you will end up paying for these services, you will still have an income, without all of the stress and work that goes into maintaining your business.
You may also decide to do this if the real estate market is too low. You are going to want to make a profit when you sell your real estate properties. If you will end up losing money, it might make sense to hold on to them for a few more months or years until the market improves.
If you decide to slowly get out of the real estate business, you should do so smartly. Take a look at all of your properties and how they have done for you over the years. You may have some properties that have given you nothing but problems since you bought them. Some of your older properties may require a lot of repairs and maintenance to keep them habitable, while some of your newer properties may require hardly any upkeep. You may also want to think about which properties bring in the most income. These may be worth keeping. You may prefer to get rid of the homes that are only making you one thousand dollars a month, instead of ten thousand.
It can be hard to start downsizing, but you may want to work less and enjoy your life more. If the real estate market is good, you may want to start selling off some of your properties. If not, you may want to look into hiring a property management company. They will be able to do all of the work so that you can enjoy the profits.