Is it time to sell a rental property in Redding CA?
As a Real Estate broker specializing in Property Management in Redding CA. We are getting asked often if now is the right time to stop renting and sell your rental properties in Redding or surrounding areas. We wanted to take a few minutes to provide an opinion from a professional Property Manager.
Rental home market.
Let’s first understand where the Property Management Redding CA. market stands. Our rental market here in Shasta County and Northern Tehama county is improving. Many of the accidental landlords have parted with their properties. These properties are not often returned to the market as a rental property or investment property because first time home buyers are the first with
cash. With them occupying the home, they also have an easier time getting financing. This has lessened the available inventory for available rental properties. As you know when demand is high and supply is low prices move up. Over the past 12 months, we have seen rents climb between 5% & 8% over previous years, which is huge. The best part is that rents are now moving up as for years they worked their way down due to the heavy competition in the marketplace. Imagine for a moment that rents in Redding CA. move up another 5% or 8% next year. Then things will look fantastic.
The Sales market.
Yes, we can validate that the sales market is showing improvement. Often times property owners who have rental properties under financial water are getting closer to the surface and break-even point. With the small improvements in the sales market, many of our power investors have begun to pick up more rental homes and apartments as they know the market will grow further. Now is still a great time to buy investment properties. With the way the stock market is bouncing all over, I find myself staying away from buying stocks and moving my monies into the rental properties
So yes the Sales Market is showing improvement but that leads us to a few questions. We are confused as to why an investment property owner in Redding Ca. would sell a property at break-even pricing. After having hung in a long time and possibly taking a loss every month, why sell at break even? If you could hang in a while longer and make between $20,000 and $100,000 why would you sell? The timing seems all wrong. The old adage still applies “Buy low and sell high”. The market is nowhere near a high at the moment. Believe it or not now is still a great time to buy rental homes or apartment buildings. Why because the market is nowhere near a high. So the thoughts from a professional property management company operating in Redding CA. No, No, No only sell when the market is at a high and that’s just not where we are at.
One last thought. If you want to begin buying rental properties, you should involve a property manager before ever making an offer. We can help you understand the cost and benefits a property manager can provide. We can also help you understand what a property might rent for and what things may need to be done to make it a great rental property. So often someone will come to us after buying a new rental and they find that they have misunderstood the cost of owning a rental and they don’t make as much profit. Best to involve us before making an offer on a property. Then you will have good numbers and facts to the basis you offer on so you can maximize profits.
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