Retire from Being a Landlord and Sell Your Out-of-State Rental Property in Carlsbad
Carlsbad is the ideal location for a rental property in San Diego County – sprawling along the Pacific, Carlsbad leaves little to be desired. You can ride your beach cruiser along Coast Highway 101 and enjoy sand, cliffs, and the downtown Carlsbad Village area with countless breweries and quaint restaurants. Carlsbad offers locals and tourists alike with a “small beach town feel,” but still tons to do and see. And if you bought your Carlsbad rental during the economic downturn, you may be seeing the potential to make a lot more than what you paid for the property ten years ago. The median home value in Carlsbad currently sits at a whopping $766,500, up over 6% from last year.
Whether you’re looking to retire and want to cash out, or you’re just tired of being an absentee landlord – there are plenty of benefits in selling right now.
What makes being an absentee owner so difficult?
- Property maintenance – while you likely see positive cash-flow from your rental property, you won’t be a stranger to also forking out large sums of cash to pay for a broken dishwasher or a leaky roof. Especially while overseeing a property that is hundreds or thousands of miles away, coordinating maintenance visits and covering the bill can be burdensome.
- Property management– Carlsbad is bustling with young renters, and keeping up with turnover can be tiresome. Most absentee owners opt in getting help from a local property management company – after all, someone needs to be able to market and show the property! Property management fees are another expense to absorb – usually costing between 4-12% of your gross rent.
- Paying taxes – As with any house you own, you will have to pay property taxes. But, don’t forget that you may also need to pay taxes in California on the income from your rental property.
- Violations – Even if you do hire a property management company, the fact is that you won’t have eyes consistently on your house. While we always seek the good in everyone, we also know that “bad tenants” is not just a myth. If tenants know that you don’t live locally, it isn’t unheard of that they will try to get away with breaking some of your policies (smoking in the house, having restricted pets etc.).
Maybe you’re reading this and thinking, “Yes, that is exactly why I am considering selling!!” If that is the case, here are some things that you can look forward to.
Benefits in selling your out-of-state rental property:
- Unlock equity – If you are retiring or looking to reinvest elsewhere, you need to first cash out on your rental property! You made a good choice by investing in Carlsbad, and now you can reap the rewards from one of your biggest investments.
- Get more for your investment – By selling right now, while we are still in a seller’s market, you can get more for your rental property than you could have in any recent years. Make more money by taking advantage of the local market, and sell before things begin to slow or change direction.
- Relieve yourself of the stress – You no longer have to worry about collecting rent, replacing refrigerators, or paying any fees associated with the house. Being a landlord is no longer in your job description!
Why selling direct makes life easier for out-of-state landlords:
There are many reasons why selling direct to an investor can be much easier on out-of-state landlords. For one, you don’t have to worry about making any repairs or cleaning a thing at the property. Given the fact that you might not know the current condition of the house (depending on your tenants), this can be a huge advantage. Another benefit is the fact that you don’t have to endure the traditional “prepping” process that includes staging, open houses and showings. With tenants still in place, coordinating these things from a different state can be nearly impossible! Plus, you won’t have to wait while your home sits on the market to sell. You can close on a flexible timeline that fits the needs of both you and your tenants. Regardless of the route you choose to take, we are local to San Diego and can help you get the most for your Carlsbad rental, even if it isn’t with us. Give our team a call to discuss your needs, and finally become a retired landlord!