With the housing market doing relatively well over the past few years, I am starting to see more posts along the lines of, "I have to sell my rental because it has appreciated too much" I think this can be a mistake, so I am trying to offer guidance. From my experience, rent increases will follow home value market appreciation, but you might have to wait 6-18 months.
On was on MMM in 2014, talking about one of my rentals in Fort Collins, CO. The rent at the time was $1450/month. Market rent was probably closer to $1600/month at the time, but the current tenants had re-signed for another year and I didn't raise the rent. In 2014 to 2015, home values started to increase. I don't remember the specifics, but you can probably look it up. I had some dead equity in the rental and low cash flow in 2014. I got blasted pretty hard by the forum and was told that I needed to sell asap.
I got new tenants in 2015 and raised the rent from $1450 to $1900, then $1950 in 2016, $2200 in 2017, $2250 in 2018 and finally $2500/month in 2019. From my experience, home values would increase and then rents would increase about 6-12 months later.
Don't force yourself to sell because you have had, "too much" appreciation. I would be thankful and wait a year to see what rents do.
Anyone skilled in this area that can put numbers in support or against this argument?