Sell or rent?

[snafu]

If this is the first lousy tenant in 3 years you've done a great job of screening. The guy's a lawyer and knows vermin is a valid issue to break a lease. Unless you're in Montreal or some area where all leases run July to July, I suggest you begin advertising now to avoid losing the entire month of April revenue.

Your second issue is whether you want to continue as a landlord. There are risks, it takes time, the older the building the more potential for repair. If you've had some profit during this ghastly market you've done better than most. This sounds like a good opportunity to re evaluate whether you want to continue in the triple role of landlord, property manager and Mr. Fix-It.

In hopes of being helpful, I suggest preparing a list of pros and cons to offer clarification. What was property value the day tenant # 1 moved in? Assess the real estate market, have an agent evaluate what they see as a selling price based on sales since January. This might be skewed if weather has been ghastly in your region. Add up how many hours per month on average you've given the property. How much have you spent each year for updates/upgrades etc. will Capital Gains costs? What is profit including tax deduction? What is a reasonable profit time ratio? Were you to sell the condo, what would you invest in next? What is the risk of that investment?

[danielhermann]

Even if you sell, you have to disclose the fact that there is a possible rat menace. So in any case, you need to find out whether the problem persists or is resolved. If you are not interested in holding onto the property, you may dispose of it once and for all. Bear in mind, that renting a property is never a way to earn. It is the appreciation in property which makes a difference. If you have gained in pricing per your expectations, it would be best to cash out now.

[optimist]

If this is the first lousy tenant in 3 years you've done a great job of screening. The guy's a lawyer and knows vermin is a valid issue to break a lease. Unless you're in Montreal or some area where all leases run July to July, I suggest you begin advertising now to avoid losing the entire month of April revenue.

I would love to advertise it now, the problem is - I won't be able to show it until my tenants move out March 31st. Normally, I would ask the tenants to make the apartment available for showing, but given the issues we've had, I doubt they'd cooperate. Typically, people who look for apartments want to see them right away. If I put the ad out in mid-March, all the interest will subside before I had a chance to show. I am thinking of advertising it April 1st or 2nd, after I've had a chance to clean the place and determine exactly how much work it needs. This way I can start showing it the first weekend in April. I am resigned to loosing revenue for April at this point. Will just write it off as a business loss...