Is now the right time to sell your rental property in Rhode Island?

If you're a landlord in Warwick, Cranston, East Greenwich, Coventry, North Kingstown, or anywhere in Rhode Island, chances are this question has crossed your mind more than once. With evolving laws, rising home values, changing tax policies, and the 2024 NAR settlement reshaping the way real estate is transacted, 2025 could be the most pivotal year in over a decade for rental property owners to reassess their strategy.

As top-rated real estate experts in the state, Nick Slocum and the Slocum Home Team are here to guide you through the decision-making process.

Why More Rhode Island Investors Are Considering Selling in 2025

1. Historic Home Values = Greater Equity

Rhode Island home prices have seen substantial appreciation. According to the latest Q1 2025 market stats, the average single-family home price across the state has reached $624,700, up 9.1% year-over-year. In Warwick alone, the average sales price now sits at $460,986, with a median of $419,000. If you’ve owned your rental for 5+ years, your equity growth may be significant.

2. Lower Inventory = Stronger Demand

Inventory remains tight. In many towns, we’re still in a seller’s market (defined as fewer than 3 months of inventory). That means:

• Properties are selling quickly

• Buyers are more likely to waive contingencies

• Well-priced rentals can fetch multiple offers

3. Changing Rental Landscape

Many RI landlords are reevaluating whether the returns are worth the hassle. Why?

• Increased tenant protections

• Maintenance and repair costs

• Difficulty increasing rents due to affordability concerns

• Possible upcoming changes in rent control laws

If you’ve been managing your own property or relying on a third-party manager, rising costs could be eating into your profits.

4. Tax Implications of Selling in 2025

With capital gains thresholds and 1031 exchange benefits under constant review, some investors are opting to sell now to lock in gains under current rules. Remember, always consult a tax advisor before making a decision, especially if depreciation recapture is a factor.

Is It Smart to Hold Onto Your Rental?

Sometimes, keeping your rental still makes sense, especially if:

• You have long-term tenants and stable income

• Your mortgage is paid off or at a very low rate

• You’re using the property to build generational wealth

• You’re not ready to pay taxes on capital gains

Think of your rental as a portfolio asset. If it still cash flows and appreciates, and you’re not ready to reposition the equity elsewhere, holding may be the move.

But if it’s become a burden—or you’re unsure of its future value—it’s time to reevaluate.

What If You Inherited the Property?

If you’ve recently inherited a property and are now a reluctant landlord, you’re not alone. Many Rhode Island homeowners are in this situation. Selling could offer peace of mind, free up capital, and help avoid costly property upkeep. The Slocum Home Team regularly assists families with estate sales and can provide guidance through every step.

Selling a Tenant-Occupied Property: What You Need to Know

According to RI state law:

• You can sell a property with tenants in place

• Buyers must honor existing lease terms (unless vacant possession is negotiated)

• You may need to offer proper notice for showings, inspections, or non-renewal

Pro Tip: Work with an experienced Warwick Realtor like Nick Slocum or one of the Slocum Home Team’s top agents to ensure a respectful, compliant transition that keeps you and your tenant protected.

What’s the Market Like Right Now for RI Rental Properties?

Investors and primary homebuyers alike are competing for limited inventory. Properties that are:

• Move-in ready

• Properly maintained

• Priced in line with local comps

...tend to attract serious buyers quickly.

The average days on market for Warwick homes is just 30 days, down nearly 12% year-over-year.

What’s Your Exit Plan?

Every rental owner has different goals. Whether you’re planning to:

• Cash out and retire

• Reinvest via 1031 exchange

• Pass property to heirs

• Simplify your life and reduce stress

...your decision should align with your long-term plan. We help RI landlords determine the right time to sell—and the smartest way to do it.

Why Landlords Choose Slocum to Sell Their Rentals

• Full-service marketing to attract investors and buyers

• Deep local expertise across Warwick, East Greenwich, Coventry, North Kingstown, Cranston, and Providence

• Track record of results: 76+ years of combined team experience

• No Gimmick Guarantee: Cancel anytime. No hidden fees. Total transparency.

Let’s Talk About Your Property

Ready to explore your options? Let’s start with a conversation. Nick Slocum or one of our expert listing specialists will walk you through your current market value, potential proceeds, and whether now is the right time to sell your rental property in Rhode Island.

Contact the Slocum Home Team today and let’s craft a custom strategy.