How Dependable Home Buyers Can Make Selling Your Property Easier
Owning rental property can be a fantastic long term investment that seems like it is widely available to an array of people from all walks of life. From the outside looking in, it appears to be a great way to make a profit and build credit without having to work very hard. However, just because most people have the ability to keep their rental property, it does not mean they should. Being a property investor is hard work, time-consuming, incredibly stressful and can be a financial nightmare. Unfortunately, many landlords find this out the hard way and end up losing their property, their profit, and compromising their mental state. If you are already feeling the stress and weight of this burden, we can help.
Are you a tired landlord?
Many people become landlords without realizing the full magnitude of the situation at hand. Being a landlord is not only a way to make money, but it is also a job in which you are, in most cases, the only employee. A landlord is responsible for maintaining and managing relationships with tenants, legal matters, repairs and building codes, and countless issues that could potentially come up from general home ownership. They are also in charge of finding tenants, collecting rent and evicting tenants for non-payment. It takes substantial time and effort to be a successful landlord, especially if there are trouble tenants involved, and many people do not realize this when they decide to take on the task. The stress of this continual responsibility often results in a tired landlord.
Tired landlords do not always make the best decisions when it comes to tenants. Typically, they will choose anyone who is interested in the apartment or home without any kind of background check because they are too burned out to do any of the work. This can result in tenants who destroy property or have an otherwise poor past rental/buying history that went undiscovered. If landlords are tired of managing their rental property, there are many solutions that are available to them.
A quick and easy solution would be to employ the services of a property liquidation company. These companies buy rental properties for CASH and can resolve your property problems within a couple of weeks. A reputable property solution company will offer a fair market value on the property and will be able to buy the rental property quickly. These companies have extensive experience working with tired landlords and specialize in getting a quick sale for them. This solution can save landlords thousands of dollars as opposed to carrying down the path of holding their property without professional guidance. Our team of experts can help you get started on this process today. Call us now to learn more!
Do you have trouble with your tenants?
If you are a landlord, there is an excellent chance that you have dealt with tenant issues at least once. However, reducing the rent to keep good tenants and evicting problem tenants may not be the best options for you. Lower rents affect a landlord’s profitability, and evictions are not only financially costly but also waste valuable time and resources. Not to mention, a frustrated evicted tenant could try to retaliate by destroying the property, costing you even more money. No matter how good of a landlord you are, you will probably run into a situation in which you have a tenant problem, which could include refusing to pay rent, bad tenants slipping through tenant screening processes or even pet issues.
Tenants Refusing to Pay Rent
Tenants withhold rent from landlords for various reasons, but most of the time the issue is the result of a cash flow shortage. Communication is critical when confronting the issue of lack of payments and it is crucial for landlords to consider the tenant and try to negotiate, if possible. If the tenant has unexpected cash flow problems, then there are minimal short-term options available to the landlord. As the length of time over which the tenant refuses to pay increases, so does the stress levels on the landlord. Eviction procedures can be both slow and expensive, at a time when money could be tight.
Bad Tenants Slipping Through The Screening Process
Simple credit and background applications do not always sufficiently reveal tenant history, including significant problems. There are several ways that landlords can help to ensure that they have a working knowledge of the tenant that they are signing a lease with beginning with fine-tuning the tenant screening process. By performing a thorough background check, landlords can verify employment, rental histories, credit, and references.
However just because a tenant has an excellent credit history and record of regular repayments, does not mean that they will always pay on time. People can lose their jobs, get into financial difficulty, or go through a divorce which can turn their life upside down. When these type of situations occur, as a landlord, you still have to pay the mortgage payment or risk losing the property and your investment overnight. This could potentially cost you thousands of dollars and be catastrophic to your investment, business and credit record.
Let’s face it, not every tenant is going to be the most honest person in the world. No matter how many times you tell them that they cannot have pets, if you are not living in the same building, there is really no way for you to know if they are sneaking them in. Pets, most especially dogs and cats, can be very destructive to property. When pets are held in a small space such as an apartment, they can become resentful and purposefully devastate the property. Likewise, some people get pets for comfort or companionship but do not know how to take care of them. The tenants can become neglectful and allow the pets to destroy your property, leaving the apartment or house in an irreparable state.
Constant Repair Calls
Even the most updated properties have repair issues. Being called in the middle of the night for a leaky sink, a lack of hot water or a burst pipe may seem like it will never happen to you, but it occurs far more often than you may believe. When landlords take on the responsibility of renting, they also take on the responsibility of repairs to a house that they probably do not reside at. While this can be a crisis for a long distance landlord, it is not much easier for someone who lives nearby. A burst pipe call in the middle of the night can result in huge losses of property as well as a financial and social burden. The liability factor is also always in play. For many landlords, it is the slew and onslaught of repair calls that eventually leads them down the path of wanting to sell.
As much as catastrophic repair calls can leave a landlord feeling burnt out, constant smaller nagging calls can be just as tiresome. Something as small as a toilet clog can seem like an easy fix but can soon be found to be a systemic issue. Oftentimes, these smaller repairs turn out to be much more costly and consistent than imagined and tend to become ongoing and highly annoying problems for the landlord.
Long Distance and Nomadic Landlords
It is very common in society today to be a long distance or nomadic landlord. Long distance landlords are property owners that live further than a reasonable drive away from their rental property. Nomadic landlords fall under the same definition. However, these types of property owners end up moving from place to place over a span of years. Oftentimes, nomadic and long distance landlords are in the military and do not know when and if they will be deployed to a remote location, sometimes even outside of the country.
Being a long distance landlord comes with its own set of problems. For instance, being a long distance landlord can make it very difficult to arrange for contractors to work on your property. In a normal situation, it can be challenging to communicate with someone who is working on your property. In a long distance situation, it is exponentially harder because there is no one there to be able to follow up and double check the work that is getting done. Also, long-distance landlords are not able to just “check up” on their properties, especially if they feel like something is suspicious. Being able to drive by and check on a property that you own has advantages that cannot be measured and nomadic and long distance landlords do not have that luxury.
Do you want to sell but still have tenants living on your property?
When a landlord decides it’s time to sell a rental property, but they still have tenants living in the home, there are two main courses of actions they can take. They can either wait for the lease to expire before selling or they can choose to sell while the tenants still occupy the home. There are pros and cons to both options, and it is best to consider each of them before making a decision. Having a plan and open communication with tenants is the best way to ensure a smooth transition and a successful sale.
Waiting for the lease to expire has its advantages. If you can wait for the tenants to move out, you will give yourself time to clean, update, and modernize the space as well as perform any minor repairs that may need to be done in order to raise the selling price. Additionally, waiting for the lease to be up would be helpful if the house unexpectedly sells quickly. If the home is unoccupied, you can accept a quick sale without the burden of needing to wait for people to leave the property.
There are also cons to waiting for the lease to expire before selling your home. Each month without a tenant when you are in the selling process is a month without a rental payment going toward the mortgage. The mortgage cost is not put on hold while property is on the market so as the property owner, you are responsible for making the monthly payments.
If the burden of the cost of waiting for the lease to expire is too much to handle, you have the option to sell while the home is occupied. When a home is furnished, buyers have an easier time picturing themselves living there. If the tenant has kept the living space in good condition and it is well decorated, buyers are more likely to bid on the home. It is also a big selling point for anyone who is looking to buy the home to also rent it out. It would save the buyer from having to find other tenants if the space is already occupied.
As expected, angry tenants could make showings difficult. If you tell your tenants they have to move out, chances are they are not going to be overly accommodating when it comes to keeping the place clean and presentable for showings. Unpredictable tenants can have an impact on how the house shows but they could potentially be persuaded by being offered lower rent for cleaning and continuing to keep a well-kept home for open houses.
Regardless of the path you chose to take, you should make sure to review the lease to confirm the agreement you have with your tenants. You should also check state and federal laws about how much notice you have to give your current renters.
Whatever situation you find yourself in, if you have come to the conclusion that it is time to get out of the rental game, or at least out of a specific property, then Dependable Homebuyers could be the perfect solution to your problems. In most cases, we can view, make an offer and complete the sale inside a couple of weeks, removing the stress and hassle you have been facing, almost overnight. Don’t let the rental property get you down, cause you any more frustration of hassle. Give us a call today, and soon your property problems could be a thing of the past.
We’re available to talk about your property at any time! Give us a call at (855) 741-4848 today. We’re local and would love to meet you at your property in person to talk about your options.