The Problem Of Being a Landlord
Owning and investment property can be a great investment, but it cause serious anxiety. Whether it’s the constant repairs, hiring unreliable property managers, or dealing with bad tenants, sometimes leasing out your rental property can be more trouble than it’s worth. So what are your options when you don’t want to be a landlord anymore?
There are several reasons you might be tired of being a landlord. One of the biggest is constantly spending time and money to maintain your property. While most landlords expect to have a few minor repairs, landscaping, and other basic maintenance, unexpected expenses can kill your profits. Replacing faulty appliances or repairing a leaky roof can drain your reserve account and your profits.
Antonia Farzan of Business Insider decided to opt out of being a landlord, one of her major issues was caused a lack of steady cash flow. The decision wasn’t easy, as Farzan belongs to a family of landlords; both her mother and grandmother managed several rental properties for additional income as she grew up. Yet, once Farzan was able to rent out her own property, she left her family’s landlord business to seek more financially secure opportunities.
“Owning a rental property doesn’t mean that money will just magically appear in your bank account every month” Farzan notes. Occasional expenses are part of a rental property’s contingency plan, but the additional costs are often much higher than initially thought. If you are not comfortable with the possibility of losing money on your rental property, ridding yourself of the responsibility might be your best option.
Professional Property Management
Many landlords obtain the services of third parties to manage their properties. They do this for many reasons, from saving time spent on answering tenants’ calls, to hiring contractors to fix basic issues. But finding a reputable property manager can be costly and time-consuming. Even after finding someone to take over the day to day operations, you may still find yourself dealing with headaches.
Property management companies are an added expense that will further reduce your monthly cash flow. When inquiring about management groups, “expect to hear quotes ranging between 5% and 10% of what you collect in rent revenue”, estimates Ron Leshnower, a legal publisher for NOLO. Although the percentage seems low, 5 to 10 percent can be the difference between positive or negative cash flow in a down rental market. A landlord can lose out on a huge portion of profit when hiring a property management company.
Unfortunately, after hiring a company the expenses don’t end there. Property managers are notorious for overcharging for simple repairs. A leaky faucet can turn into a few hundred dollars owed to a plumber. Without proper oversight, a property manager can easily pull the wool over their client’s eyes.
Dealing with tenants is one of most burdensome duties of a landlord. When hiring property management groups, you trust them to deal with even the most high-maintenance renters. Yet, property management companies often don’t know what to do when tenants tear up your house.
Sometimes accepting bad tenants cannot be avoided. To prevent profit loss, a property manager will fill your rental’s vacancy with the first tenant that applies. This can be a costly mistake.
Bad tenants can default on lease agreements, steal appliances, and cause tens of thousands of dollars of repairs to your property! The damage dealt can transform your newly updated home into an undesirable fixer-upper.
Selling with a Real Estate Agent
If professional property management is an expensive, unreliable option to maintaining your rental property, selling your home might be your best option when you’re tired of being a landlord. Most sellers consider using a realtor when selling their property, but it can be hard to sell a home with tenants living in it.
Some realtors have trouble complying with tenant-landlord laws. Although state laws differ, most states give the tenant the right of first refusal (ROFR).
The ROFR is a contractual right that allows the tenant to sue a landlord if not given the offer to buy before selling the rental property. If an agent ignores the ROFR, you could be in major legal trouble and spend thousands in legal fees before selling.
Agents also must be mindful of a current tenant’s right to refuse showings. Showing a home to potential buyers is key to selling the residential property. If the tenant is unwilling to show or unable to keep the property in pristine condition, you may lose a potential buyer.
“Many real estate agents are reluctant to show buyers a tenant-occupied home because they expect resistance to allowing visitors into the property and assume the condition will be less than optimal,” warns Michele Lemer from Bankrate.com.
It’s true. Some tenants can be uncooperative and downright hostile during the showing and selling process. Others refuse to pay the last month’s rent before closing and can cause damage to the property right before closing to derail the sale of your home. Before hiring an agent to assist in selling a house with tenants, decide whether they’re worth the headache and money it costs to sell a tenant-occupied property. Also, don’t forget about listing fees, processing fees and commission. Expect to pay 7% in commission plus about another 1% in fees to get your home sold.
Also, with the traditional sale you will still be responsible for inspections, repairs, city inspections and you will most likely be dealing with a buyer that is using a loan from a bank. That means that you will have to hope that the property will appraise for what you have agreed to sell it for. If it doesn’t you could be out even more money.
Selling to a Cash Home Buying Company
If selling your property is the best option when you’re tired of being a landlord, how can you easily sell your house with tenants? In many circumstances, selling to a house buying company is the best option when deciding what to do if you don’t want to be a landlord anymore. This can give you the simplest and least stressful solution to your rental property problems.
You don’t have to stress over the legalities of how to evict tenants living in your current rental property. You’re able to sell to a house buying company without evicting tenants. Rid yourself of bad tenants and costly property management fees in a quick, easy sale without using an agent. House buying companies buy homes as-is, even those in poor condition due to disrespectful tenants.
You don’t have to worry about selling a house with a valid lease agreement when you sell to a house buying company! House buying companies have the expertise to handle even the stickiest lease agreements, allowing you to close quicker and move on to better investment opportunities.
Selling to a house buying agent also ensures your tenants will have a hassle-free transition from seller to buyer. This is especially great if you’re related to the existing tenants, a common occurrence for landlords.
House buying agents allow you to sell your rental property without worrying about tenants, repairs, additional fees, or leasing agreements.
If you’re tired of being a landlord, selling to a house buying company is a dream come true.
Sell Your House Fast to Saint Louis Home Buyers
Instead, why not sell your home to Saint Louis Home Buyers! When selling a rental property, we can give you a fast, cash sale. All you need to do is fill out the form to get the process moving. We are locally owned and operated so we can come out quickly to give you a cash offer on your investment property. In as little as a few days, you’ll be free of your house and able to move on with your life. You’ll have quick cash and can immediately begin prioritizing your financial goals.
Testimonials: Click here to read testimonials from some of our customers
Sell Your House to a Cash House Buying Company
Another option is to sell your house to a house-buying company. This gives you the best of both worlds! You won’t have to worry about any repairs, you save on commission costs and you can receive a quote in just 24 hours.
Danny Buys Houses gives you a cash offer within one day and you can close it whenever you want. Your house can be sold in a week!
If you need to sell your St. Louis area rental fast contact us today for a no obligation, cash offer on your rental property! Whether you decide to sell your house to us or not, we would like to help answer questions you might have about the process.