If you own a rental property in San Diego, you might feel like being a landlord is getting much harder. I am seeing many owners decide to sell their properties right now, and there are a few big reasons why:
1. New and Complex Laws
California passed new rules (like AB 628) that started this 2026. Landlords are now legally required to provide and fix appliances like refrigerators and stoves. If these are not working, the home is considered “unfit to live in,” which creates more work and higher costs for owners.
2. Rents are Dropping
For the first time in 15 years, San Diego rents are going down. Because so many new apartment buildings were finished recently, there are more choices for renters, which forces landlords to lower their prices to find tenants.
3. More Empty Homes
The vacancy rate is the highest it has been since 2009. This means rental homes are sitting empty for much longer—sometimes a month or more.
4. High Taxes on Profits
California has a very high Capital Gains Tax. Many landlords want to sell now and use a 1031 Exchange to move that money into a different investment to avoid paying those taxes immediately.
5. Cashing Out Equity
Most landlords have seen the value of their property grow significantly over the last few years. They are choosing to sell now to take that cash out while the market is still strong, rather than dealing with the stress of managing tenants and repairs.
Right now, you likely have a lot of equity (value) in your home. It is a smart time to sell before things change further. Whether you want to sell your rental or find a better investment, Shirin Rezania Ramos can guide you through every step of your home buying or selling journey. Contact her today at 858-345-0685
What is your home worth? click here.
Homes for sale in Carmel Valley click here.
Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
