Are You a Landlord? Are You Considering Selling Due to the Pandemic?
If you own investment property in Hawaii, you might be wondering whether or not it’s a good time to sell? Are your tenants behind on rent? Have you had to lower rent to keep monies coming in? Are your tenants on payment plans, or have you deferred rent altogether?
Is It Time to Sell?
Times are tough for tenants. But, times are also tough for landlords. Very tough. Most of the job losses we’ve seen in Hawaii have been jobs filled by low-income earners. And, most of those low-wage earners are disproportionately renters. If you own a studio, one-bedroom, or two-bedroom condo (or condos) on Oahu, you may have a tenant(s) who is unable to pay their rent. This places a burden on you, and without additional stimulus funds, you may be looking at more rent loss down the road.
So, what should you do? It’s difficult to know for sure what makes the most sense, but according to some economists, there is a belief that more and more landlords will decide to sell their property.
Hawaii Real Estate Market is Strong
Why? For one, Hawaii’s real estate market is strong. A robust market makes it tempting to sell, especially when cash flow is not forthcoming. The continued drag on Hawaii’s economy coupled with concerns over unpaid rent is enough reason for landlords to unload their properties. But, there may be other reasons, as well. Many of Oahu’s buildings are getting older. You might be faced with skyrocketing maintenance fees and assessments. Many buildings are at an age where window replacement, pipe replacement, spalling repair, and other maintenance issues are a real concern. Even if you own properties that aren’t being hit with increased fees, you may still need to pour money into an investment that is not reaping a good return.
Get Your Property Assessed
Even if you aren’t in the market to sell, it’s still a good time to assess your property. And, your financial position. The Hawaii real estate market is robust. For now. Are you anticipating a further drag on your finances? Are you unsure of the future? Tired of navigating being a landlord through a pandemic? If so, give me a call. We can look at the pros and cons and arrive at a course of action that makes the most sense to you.
Now, more than ever, is a good time to assess your real estate portfolio!