Owning a rental property can be a great way to earn additional income. After some simple repairs and a Craigslist ad, collecting rent checks will supplement your income with ease. Eventually, though, this arrangement may become more of a burden than anything else. It’s not always easy to spot irresponsible tenants from the outset, but if your property becomes damaged, then you’ll have a major issue on your hand. It’s every landlord’s nightmare, but after enough time in the wrong hands, your property could experience severe irreparable damage. Depending on the extent of the damage, it may be best to sell your rental property for cash.
When Will You Notice Substantial Damage to your Rental Property?
Most landlords have no reason to consistently visit a property. After the tenant has moved in, you may not hear from them for months on end. In fact, this is generally a good sign. Unless there is a major flood in your rental property, or an issue with the electricity, you may not enter the property until it’s time for an inspection. For some landlords, this is the point at which they discover their property has suffered severe damage.
What is Your Recourse for Damage to Your Rental Property?
As a landlord, there’s nothing worse than finding that your property has been destroyed by tenants. While you may think that long-term tenants would have the decency to inform you of these damages, this is not always the case. Tenants might be aware that repairs could last for weeks, and selfishly keep this information to themselves. Either way, if the repairs are substantial enough, they will cost a significant amount of money.
Depending on your lease agreement, you may have a few options. The first and most obvious option is to keep your tenant’s security deposit. Based on the location of the property, this may make a solid dent in the repair. But, a security deposit will likely not cover substantial expenses. If the lease terms allows for it, then it might make sense to attempt to recover funds through other means. However, this will likely involve a lawsuit– which can be quite expensive in its own right. Even if you have the appropriate insurance policy, you should account for the possibility of your claim being denied.
Alternatively, it’s possible that your rental property suffered damage through no fault of the current tenant. Whether there was a natural disaster such as a hurricane, a burglary, or simply deterioration over time, the tenant may be exempt from blame. If this is the case, then you’ll be forced to finance repairs independently.
After assessing the damage, you must choose between making these repairs, and selling your rental home for cash.
Is it Profitable to Make These Repairs?
When you’re faced with these unfortunate circumstances as a landlord, you need to make a difficult decision. Making the necessary home repairs and subsequently attempting to rent the house to a new tenant may seem like the optimal solution. But, the costs of these home repairs can quickly grow. Foundation damage, for example, can quickly become a difficult project to fund. Asbestos and mold removal can also be quite costly– at least for a sustained and complete removal. And, failing to have asbestos removed can pose a serious risk to your tenants. Dilapidated siding is a serious eyesore, and weakens your home’s resistance to moisture. To make matters worse, most contracting companies capable of these massive projects will charge hefty fees. They may also deviate from the timeline– keeping your eventual rent checks even farther away.
In most cases, it doesn’t make sense for landlords to finance these repairs.
Selling Your Home for Cash
If you elect not to repair your home, then the obvious choice is to sell your home for cash.
At first, putting your home on the market in a conventional manner might seem appealing. After all, that’s the best way to guarantee a high return. But, you should consider how the home will fare considering the extent of the damage. Most prospective buyers will attempt to talk you down from that price point to a point that’s simply not worth your time. Factor in the cost of a real estate agent, property taxes during the selling period, and this option quickly becomes expensive.
Selling your home for cash allows you to bypass these variables. Rather than waiting to find an interested buyer, choosing to sell your home for cash guarantees that you’ll receive your money immediately. Professional home buyers can recognize appealing prospects– so you do not have to account for the usual consideration period.
Second, selling your home to a professional home buyer removes the responsibility of making these repairs. Professional home buyers see past this damage, and find the opportunity to renovate the home appealing. You can also save the money that you’d otherwise be spending on legal fees and related expenses.
Atlantic Shores Home Buyers
If you’re looking to sell your rental property and move on, then contact the team at Atlantic Shores Home Buyers. We are experienced in quickly evaluating properties and making prompt, fair home offers. As the current property owner, we’ll give you the time you need to consider the offer– the timeline is completely up to you. If you decide to sell your rental property for cash, then we’ll pay you right away! If you’re considering selling your rental property, then contact our office to learn more.