Should I Sell My Rental Property?

It's early 2022. The market is hot. Now is the best time to sell your rental property in Calgary, and there are five reasons why!

Having rental properties is great, but it can be taxing at times. If you feel like managing and maintaining rental homes is taking a lot of time, and you need to focus on other things in your life, letting go of the property may free up some headspace.

Seller’s Market

It is evident that Calgary, Airdrie, Okotoks, Cochrane, Chestermere, and the surrounding area are now in a seller’s market. A seller's market is a fantastic time to sell your property because there are limited homes for sale in the market.
You could be an accidental landlord because you could not sell your property before, and you kept it as a rental. Take advantage of this opportunity to be free of the responsibilities of being a landlord.

Cash Flow Negative

Back in 2006 to 2008 and 2014, the market has seen highs in terms of values. Many people bought homes during these peaks. Four to five years later, when the peak had settled, people wanted to move, but the problem was the equity was not there!

You may have turned your home into a rental, but you might have been in a cash flow negative situation or a break-even situation. Your rental income is just barely covering your costs, and it is causing you stress and anxiety. This could be the time to let it go.

If you are worried about your tenant, you can still sell your property and let them finish the lease agreement because there are buyers who are willing to assume tenants. In some cases, there are people moving to Calgary from other cities, but they don’t need to move right away; they just want to secure a property here.

They would be open to having a good tenant in that home if they see it as the right home for them six or eight months later. They can move here when the tenant’s lease is up, then it is their property.

Level Up or Consolidate Rentals

There is a great strategy in investing in real estate properties to leverage yourself. If you have multiple rentals, at some point, you may want to consolidate them. For example, you own ten rental homes. Your tenants are paying off the mortgage as you manage the properties.

You can sell five out of the ten properties and take the equity to put it on the other five. Now, you have your five rentals with no mortgage or a minimal mortgage. They might have been all condos, and now you want to have a bigger investment like a detached home or even a small commercial space.

Living Out of Town

You and your family may have moved away from your home in Calgary, and you kept your home as a rental, but it's too much work. Now is a good time to consider making this change because the market is hot!
This is a fantastic time to move that property because you have made money on it. And there is more equity there for you to make that change.

Tired of Being a Landlord

Again, if you are an accidental landlord, and you still have that property, or even if you intentionally bought a rental, but you just don't want to be a landlord anymore, 2022 is the year to make a change!

If you feel that there is so much going on in your life right now and managing a rental is something that doesn’t spark joy anymore, it is time to move forward and clear a lot of headspace.

The market is hot, but that does not mean every property sells, and there is a lot of money left on the table for those who are not positioning their home properly. It is best to partner with a realtor to put a strategy together to get the most out of your property in this hot market.

If you have any further questions or are considering selling your rental home in Calgary or the surrounding area, we would love to help you out. You can send us an email at info@chamberlaingroup.ca or call us at 587-316-5400.