With COVID-19 pandemic still in full force, many Myrtle Beach real estate investors/owners are asking the question:
“Is now the right time to sell my Myrtle Beach rental property?”
To answer this question, we offer three considers for every real estate investor/owner:
1. Interest Rates are at All Time Lows
How low are interest rates for real estate investors/owners?
In the history of interest rates in the United States, interest rates have never been at a lower than they are right now. There’s even talk of rates potentially tricking down lower than they are now. Instead of selling you rental property, now be a time to refinance into a fixed interest rate loan.
2. Rental Demand is Shifting
Every week at Real Living Home Realty Group, we analyze the previous weeks data for demand for each vacant property that we manage. This allows us to determine which type of properties tenants want to rent, and which they are avoiding.
Since the COVID-19 pandemic began, this is what the data shows:
Demand for suburban, single-family homes is skyrocketing. We can’t move these properties fast enough! Many Myrtle Beach renters want a single-family home with a back yard, a garage, and a fence for a little bit of privacy. People want the protection, security and privacy that a single-family home offer.
Demand for Myrtle Beach townhouses, and condos is decreasing dramatically. Since more renters are wanting a home with a yard and other amenities, shared building rental properties are less popular.
3. Property Management is Difficult and Risky
Whether you are self-managing your rental property, or you hire a property management company, it’s a difficult and risky business.
Things like new legislation and COVID rules and restrictions have increased the operational difficulty of rental property management. If you are self-managing your property, it’s extremely important that you are cautious to ensure that you don’t make any legal mistake. If you are thinking about hiring a property management company to assist you, ask them questions to ensure they understand and are compliant with the laws.
Owning Myrtle Beach Investment Property
Location: Where is your property located? If you have a property that is a single-family home in the suburbs, you should have very few problems finding quality tenants and keeping your property rented.
Longevity: How long are you planning to hold your property? If you were already planning to sell in the next 3 to 5 years, now may be a good time to sell. If your hold period is more than five years, we recommend holding your property.
Leverage: With interest rates at a record low, take this opportunity to refinance your property into a fixed rate loan.
So, if your property is in a great location, you intend to hold onto the property for more than five years, and you’ve leveraged the current low interest rates, you’re in a great position to keep your rental property!
There is no right or wrong decision when it comes to selling your property, but it is a decision every investor needs to make.