Key Takeaways

Key Takeaways Rising Costs Squeeze Profits: Grand Rapids landlords face 12% property tax increases, 25-30% insurance premium jumps, and doubled maintenance costs while rents only rose 8.2% Eviction Process Delays: Current eviction proceedings take 90-120 days on average, creating significant financial strain for landlords with non-paying tenants Smart Money is Exiting: Experienced landlords are selling while property values remain strong rather than waiting for conditions to worsen Return on Investment Declining: Many rental properties now yield 4-5% returns before taxes, making alternative investments more attractive

Grand Rapids Rental Market Reality Check: Why Smart Landlords Are Cashing Out in 2026

Look, I've been in the property business for decades, and I'm seeing something interesting happening right here in Grand Rapids. Landlords who've been in the rental game for years are calling me up, ready to throw in the towel. And honestly? I don't blame them.

Just last week, I had a landlord from the Heritage Hill area tell me, "Uncle Charles, I'm done. Between the new regulations, the maintenance costs, and the headaches, I'd rather take my money and run." This guy owned four rental properties and was making decent money until about two years ago. Now he's looking to sell everything to HOMESELL USA because he wants out fast.

What's Really Happening in Grand Rapids Rentals Right Now

The numbers tell a story that a lot of people don't want to face. As of February 2026, the average rent for a one-bedroom apartment in Grand Rapids is sitting around $1,285, up 8.2% from last year. Two-bedroom units are averaging $1,520. Sounds good for landlords, right? Wrong.

Here's what those rosy rent numbers don't show you:

Operating costs have exploded. Property taxes in Kent County went up an average of 12% this year. Insurance premiums are through the roof — I'm talking 25-30% increases for rental properties. And don't get me started on maintenance costs. A simple plumbing call that used to cost $150 is now $300.

Vacancy rates are climbing. Despite what you might hear, Grand Rapids is seeing vacancy rates hit 6.8% in early 2026, the highest we've seen since 2019. Good tenants are harder to find, and when you do find them, they're pickier than ever.

The Real Problems Landlords Are Facing

Eviction Backlog and Tenant Issues

Here's something that doesn't make the headlines: Grand Rapids still has a massive eviction backlog from the pandemic years, and the process is slower than ever. I know landlords who filed for eviction in November 2025 and are still waiting for their court date.

The 61st District Court is processing evictions, but it's taking 90-120 days on average. Meanwhile, landlords are stuck with non-paying tenants and mounting legal fees. One property owner I worked with spent $4,800 in legal costs and lost rent trying to evict a tenant who hadn't paid in five months.

New Regulations and Compliance Costs

Grand Rapids has been tightening up rental property regulations, especially around lead paint, carbon monoxide detectors, and habitability standards. Don't get me wrong — tenant safety is important. But compliance isn't cheap.

I had a landlord with a 1940s duplex near downtown who got hit with a $8,500 compliance order for lead paint remediation. The property was only worth about $85,000, and he was already struggling to make the numbers work. Guess what? He called HOMESELL USA the next day.

The Math Just Doesn't Add Up Anymore

Let me break down some real numbers for you. I'm looking at a typical rental property in Grand Rapids — a three-bedroom house that might rent for $1,650 per month:

Monthly Income: $1,650
Property Taxes: $385
Insurance: $145
Maintenance Reserve: $200
Property Management: $165 (if you use one)
Vacancy Allowance: $110 (assuming 8% vacancy)
Total Expenses: $1,005

That leaves $645 per month, and we haven't even talked about major repairs, tenant turnovers, or the landlord's time. If that property is worth $180,000, you're looking at maybe a 4.3% return — before taxes. You can get better returns in a CD right now.

Why Landlords Are Choosing to Sell Now

Smart money knows when to exit, and a lot of Grand Rapids landlords are seeing the writing on the wall. Property values are still relatively strong — median home prices in Grand Rapids are around $215,000 as of February 2026. That gives landlords a chance to cash out while they can still make a profit.

I've seen this pattern before in other markets. The landlords who wait too long often get stuck when property values drop or rental regulations get even tighter.

The Cash-Out Strategy

Here's what I tell landlords who are thinking about selling: "Whether you sell to us or someone else, don't wait until you're desperate." Desperation leads to bad decisions and lower offers.

At HOMESELL USA, we're buying rental properties from landlords who want a clean exit. No repairs needed, no dealing with tenants during showings, no commissions to agents. We handle the whole process, including dealing with existing tenants if necessary.

What This Means for the Grand Rapids Market

When experienced landlords start selling off their portfolios, it creates opportunities for others — but also some challenges for renters. Fewer rental properties can mean higher rents for everyone else.

I'm also seeing more rental properties being converted back to owner-occupied homes, which is actually healthy for neighborhoods like Eastown and Midtown. These areas were getting over-concentrated with rentals, and some balance is good.

If You're a Landlord Reading This

Look, I'm not trying to scare you out of the rental business. But I am telling you to run your numbers honestly. Include all your costs — your time, the stress, the phone calls at midnight about broken water heaters.

If the numbers still work for you, great. Keep doing what you're doing. But if you're hanging on hoping things will get easier, I've got news for you: they probably won't.

The rental business in Grand Rapids isn't what it was five years ago. Regulations are tighter, costs are higher, and tenants have more rights (which isn't necessarily bad, but it does make things more complex for landlords).

The Bottom Line

Every week, I get calls from Grand Rapids landlords who are ready to move on. Some inherited properties they never wanted to manage. Others got into rentals thinking it would be easy money and learned the hard way that it's actually a business — with all the headaches that come with running a business.

The smart ones are selling while the market is still decent and using that money for something that makes more sense for their situation. Maybe that's index funds, maybe it's a business they actually want to run, or maybe it's just peace of mind.

Whatever your situation, don't let pride or stubbornness keep you stuck in something that's not working. I've seen too many landlords hold onto problem properties for years, hoping things would turn around, only to sell for less money later.

If any of this sounds like your situation, give Uncle Charles a call. No pressure, no judgment — just straight answers about your options. Whether you're dealing with problem tenants, expensive repairs, or just want out of the landlord business, we can help you move forward.

Frequently Asked Questions

Frequently Asked Questions

Q: How long does it take to evict a non-paying tenant in Grand Rapids?

A: Currently, the eviction process in Grand Rapids is taking 90-120 days on average through the 61st District Court. This includes filing, court scheduling, and actual removal if the tenant doesn't leave voluntarily.

Q: Can I sell my rental property with tenants still in it?

A: Yes, you can sell a rental property with tenants in place. At HOMESELL USA, we handle these situations regularly and can work with existing lease agreements or help transition tenants as needed.

Q: What are the current compliance requirements for rental properties in Grand Rapids?

A: Grand Rapids requires rental properties to meet safety standards including lead paint disclosure (for pre-1978 properties), carbon monoxide detectors, proper electrical systems, and habitability standards. Regular inspections may be required depending on the property type.

Q: Is now a good time to sell my rental property in Grand Rapids?

A: With median home prices around $215,000 and strong buyer demand, current market conditions are favorable for sellers. However, each situation is unique, so it's worth evaluating your specific property and financial situation.

Q: What happens to my depreciation benefits if I sell my rental property?

A: When you sell a rental property, you may owe "depreciation recapture" taxes on the depreciation you've claimed over the years. Consult with a tax professional to understand the implications for your specific situation.