Hold or Sell Condo (almost paid off)

[Peter C.]

I don't consider myself an experienced landlord/real estate investor by any means, so I don't know the correct terminologies and I don't know if I'm thinking about the right factors.  That's why I'm hoping this community can help me! :)

I have a 1 BR luxury condo in Northern Virginia that will be paid off in 7 years.  This used to my primary home until I started a family.  I purchased this unit knowing this would be a starter home but also a reasonable rental property investment.  

Pros of holding: 

1. Will be paid off in 7 years.  
2. Managing it has been pretty hassle-free.  The unit targets established professionals.  Most, if not all, applicants have had clean records and good credit.  Small unit that doesn't need much maintenance besides the usual (appliances, plumbing, etc.).  
3. Rent is covering mortgage and fees:  However, I don't think this will last long though.  Condo fees continue to increase and it has been difficult to find new renters while increasing the rent.  
4. Property value has appreciated 33% since 2012: averages out to about 3.5% annual appreciation.  I admit I do not know how good that it is.  However, I do know it is located in a very desirable area: close to public transportation, walking distance to shopping/groceries, good commuting distance to major metro/work areas.   Property like mine sells quickly.  
5. Deeded 2 assigned underground parking spots:  Rare in my area.

Cons of holding:

1. High Tenant Turnover:  Over the past 6 years of being a landlord, I've had 4 tenants, approaching number 5 in May.  
2. Condo fees are high and increasing: Condo fees have increased about 3-5% annually, which I suppose is not bad. I pay the monthly condo fees, but it eats up almost 30% of the rent I charge.  Part of the high condo fees is due to the relatively small number of units in the building, but this also makes the unit feel more exclusive and a close community (esp. for owners who live there). 
3. Rental demand is not high: I'm not sure if it's low, but based on my experience of trying to find new renters over the years, the demand is not high for my rental.  The main reason is that most of the alternative rentals are leased by apartment management companies offering lower rates for 1 BR.  What makes my rental "unique" or hard to compare to other properties is that it is considered a bit more "luxury" and is more square footage than most 1 BR rentals in the area.  Another way to look at it is that my rental attracts a more niched prospective tenant, hence it's harder to find a new tenant.  And based on the past 6 years, even harder to find a tenant to rent over 2 years.
4. Located 45-60 min away.  Luckily, I rarely need to go there to resolve issues, but it's something I have to consider.  I have not considered property management because it has been a pretty easy property to manage.  

Conclusion:

Even though this can be a good source of passive income after the mortgage is paid off, I'm not sure how much long term income I can generate considering the relatively high condo fees.  I don't like trying to find a new tenant every year or 2.  If I had a tenant who lived there for many years then I probably wouldn't consider selling.  

Most of my post is brainstorming and spilling my thoughts.  Can anybody offer some additional insight?