There are many reasons investors decide to sell commercial properties. There isn’t an exact timeline that states how long you need to own an investment property, and the decision is ultimately yours. Regardless of your reasons, choosing to sell is a big decision.
The decision to sell an investment property is one that is best made with a local commercial real estate broker. A broker has a much better understanding of how the community around your investment property is changing. They are able to give you the most accurate information as you weigh your options. We’re covering the top reasons investors sell commercial properties in today’s market.
Here are a few things to consider when you ask “Is it time to Sell My Investment Property?”
The Surrounding Area is Changing
It’s common for businesses and the community surrounding a property to change. As the community around your property grows and develops the changes attracting patrons can cause issues for your tenants. An increase in foot traffic may be a great thing for your tenants if they sell goods or run a restaurant, but this could cause safety issues if your tenant is a manufacturing facility. Assess the changes and how they affect the value of your property as you consider selling the investment property.
There are Major Repairs Needed
All investment properties will require repairs and upgrades over time, including a new roof, upgraded HVAC system, flooring, and new windows. Do you have the cash flow for the repairs or will it take years to earn back what you invest? Can you increase the monthly rent after the repairs are completed to offset the costs?
You are Going Through a Major Life Change
As the Financial Samurai discusses, it can become extremely challenging to manage an investment property while enduring a stressful period, such as an illness or death in the family. Letting repairs slide will be costly in the long run and leaves you with unhappy tenants. If your life circumstances are changing this may be a good time to sell your investment property.
Another Source of Passive Income is Exceeding this Income
Do you have a passive income from dividends, bonds, crowdfunding, CD, online business or royalties? Once built up, these sources of income can greatly exceed that of certain investment properties. Selling your investment property may free up time and resources which allow you to grow other passive sources of income.
At Ullian Realty we understand that deciding to sell your investment property is a big decision. With over 50 years of combined experience, our real estate team knows Florida’s Space Coast. Give us a call to discuss whether this is the best time for you to sell your commercial property.