When to Sell? Short term rental

[Elaine E.]

My partner and I are debating on selling our short term rental townhouse (technically, it’s in a condotel community but we manage it independently).

It’s in Florida and doing fantastic right now, and cashflows better than ever (12% return, self managing - we make ~20k per year).

My partner is fed up and done with dealing with guest and maintenance issues. He wants to sell and get rid of it.

I like having a cash flowing asset, and diversified portfolio. I am considering hiring an all inclusive management company instead (our return would then be around 5.5-6% annually).

However, the community has been going downhill. There have been more poor quality guests in surrounding units, maintenance of the grounds and amenities has been slacking, yet management just bought new souped up golf carts… The resort is getting bad reviews on Google for poor service (the staff IS rude, even to me before), and the resort staff is not addressing those review online like they used to. Idk if it’s still recovering from COVID or if this early signs of further decline.

Home prices are record high and we would make around 50k in appreciation by selling now. Any unbiased opinions or insights?