Over time your property portfolio begins to cost you more than it’s worth. Maintenance problems arise, properties get tired and rental increases slow down. Most people don’t think much of it, they continue the maintenance and are happy with the rent. They’re mostly comfortable and don’t ever really think of selling any of their properties.
If your property portfolio has aged, there’s a couple of options you could look at to revive it a little and increase your overall wealth. Begin by getting market appraisals on some of your problem properties and see where they come in on the scale. You’ll find that after so many years, your property’s capital growth may be substantial.
Now you could easily take some money, update your property and gain a little higher rent, though this may not be the most economical solution. These sorts of properties can sometimes present more problems than expected as you start to renovate and your overall budget can nearly double. Instead, you should weigh up selling these properties off and cashing up on them.
By selling off your older problem properties, you can then reinvest into newer modern homes that are likely to have only a few to no maintenance issues whatsoever and they will also bring higher rental income. So not only will you save money year on year with repairs, but you will gain more a higher yield then what you were originally getting with the same amount invested. The best part is that you’ll have better grounds for stronger rental increases.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.