Tweet
I am stressed, confused, and need some advice on what to do with my rental condo.
I have owned it for the last 11 years and rented it for the last 3.5. It is in a good location and I've never had trouble renting it in the past. The plan has always been to keep the condo as a rental forever and let the tenants pay off the mortgage. The first three years of renting have been very smooth. I've had issues - leaks, appliances, etc, but nothing I couldn't handle. This year is different. In January my tenants alerted me to a mice problem, and despite my and property engineer's best efforts we have not been able to get rid of them - or so my tenant says. We moved all the appliances in the kitchen twice, sealing holes in walls, went over all the closets, put poison underneath the stove, etc.etc. Still, the tenant kept coming back with very dramatic emails, claiming mice are still there, that they are a health hazard, that he is suffering a great deal of anxiety, etc. Finally, he gave me notice that he has decided to move out at the end of March. We suspect he overstated the problem in order to get out of the lease, but I let him out of the lease nevertheless. Frankly, this two-month back-and-forth has exhausted me a bit. I pride myself on being a very diligent landlord and always maintaining my property in tip-top shape, and it appears I have failed (or been played - not sure which). I am now faced with the choice of whether to rent the apartment again in April, or to sell the place.
On the financial side of things, the rent I currently get exceeds all the expenses by about $150/mo, plus I get a tax deduction on it, as well as free parking at the complex (helpful b/c it is close to the subway). Renting in April may not bring me as much money (I rented it in June in the past), but I will still likely be in the black. There is, however, a virtual certainty that I will loose at least one month of rent, since I need to bring the place into shape - my tenants were very messy. I could possibly loose two months if I can't find a tenant quickly.
The alternative option - selling - is easier in April than renting, and I will most likely be in the black, but after considering the closing costs, taxes, etc. it will not be that much - may be $30K or so. Still, it would be enough cash to get my emergency fund to its target of 8-months worth of expenses, and leave around $20K for other investments.
So the question I need help on is - should I keep it or should I sell? I know the right thing to do is to keep it, clean it, fix it, and rent it out. But there's so much hassle that goes with that plan, and I'm just very tired of it all right now.
Any advice would be greatly appreciated.
I have owned it for the last 11 years and rented it for the last 3.5. It is in a good location and I've never had trouble renting it in the past. The plan has always been to keep the condo as a rental forever and let the tenants pay off the mortgage. The first three years of renting have been very smooth. I've had issues - leaks, appliances, etc, but nothing I couldn't handle. This year is different. In January my tenants alerted me to a mice problem, and despite my and property engineer's best efforts we have not been able to get rid of them - or so my tenant says. We moved all the appliances in the kitchen twice, sealing holes in walls, went over all the closets, put poison underneath the stove, etc.etc. Still, the tenant kept coming back with very dramatic emails, claiming mice are still there, that they are a health hazard, that he is suffering a great deal of anxiety, etc. Finally, he gave me notice that he has decided to move out at the end of March. We suspect he overstated the problem in order to get out of the lease, but I let him out of the lease nevertheless. Frankly, this two-month back-and-forth has exhausted me a bit. I pride myself on being a very diligent landlord and always maintaining my property in tip-top shape, and it appears I have failed (or been played - not sure which). I am now faced with the choice of whether to rent the apartment again in April, or to sell the place.
On the financial side of things, the rent I currently get exceeds all the expenses by about $150/mo, plus I get a tax deduction on it, as well as free parking at the complex (helpful b/c it is close to the subway). Renting in April may not bring me as much money (I rented it in June in the past), but I will still likely be in the black. There is, however, a virtual certainty that I will loose at least one month of rent, since I need to bring the place into shape - my tenants were very messy. I could possibly loose two months if I can't find a tenant quickly.
The alternative option - selling - is easier in April than renting, and I will most likely be in the black, but after considering the closing costs, taxes, etc. it will not be that much - may be $30K or so. Still, it would be enough cash to get my emergency fund to its target of 8-months worth of expenses, and leave around $20K for other investments.
So the question I need help on is - should I keep it or should I sell? I know the right thing to do is to keep it, clean it, fix it, and rent it out. But there's so much hassle that goes with that plan, and I'm just very tired of it all right now.
Any advice would be greatly appreciated.
Comment