Sell Your Unwanted Rental Property
Lots of folks fancy that once they’ve inherited a property, or rather, once they’ve purchased a second property, that it would just be best to turn the property into a rental. To be honest, that plan backfires quite often. Most people go into the rental situation with the assumption that it will be passive income into their pocket every single month without much to-do. Certainly, it’s a decent assumption since the rent prices in Northern Colorado are already climbing to unmanageable levels, yet it rarely works out like this. Why doesn’t it go as peachy as most real estate investment blogs would have you believe? Because more people involved in a transaction means more variables, which translates into more things going awry.
How Intensive Is Rental Home Management
Let’s just say, lots of retired people take it on as their job, because it’s a full time gig the majority of the time. Rental maintenance consists of essentially anything your renter needs. Did the hot water heater break at 7 a.m.? House is showing signs of foundation issues? Is the house in need of new flooring? A new sink? Does a door need to be replaced? All of that falls on your shoulders and most tenants (and the law) are picky about how quickly this needs to be fixed. There are a number of laws protecting landlords, that’s true. But there are also numerous laws that exist to protect renters. Some of those detail that reported issues with a house have to be fixed within a certain amount of time or else they can bring the law into your lease agreement and make a myriad of problems for you beyond the initial fixing of said broken household piece.
Keeping your renters happy (and paying) is much harder than just fixing things for them on demand. Sometimes, whether or not you get paid relies entirely on a renters whims. If you’re renting to roommates, expect rent to be a bit late, as whoever the master renter is will need to collect rent from every single person in the house just to get it to you. Enforcing rental late fees is easier said than done, and sometimes involves the law. What’s worse is the possibility of having to deal with an eviction of renters that are less than reasonable about paying attention to your demands for payment.
If you don’t have pets personally, you may not be aware of what a mess they’re capable of. As much as everyone loves their fuzzy buddy, that doesn’t change the fact that they’re still animals and they firmly believe in going to the bathroom and puking essentially anywhere they’d like. Certainly, some are better trained, but there’s really no way to determine whether a tenant is really going to wreck your rental with their pet. Dogs pee everywhere, on carpets, on nice hardwood flooring and out in the nice landscaping you did to get this property ready for a renter. While there’s an entire industry surrounding pulling up pet stains from carpeting and other things, if spots are left long enough they can do permanent damage and the smell of an animal might never clear out of the space. Which leads us to the next major issue:
Unless you feel like paying a real estate agent to find you renters— which with all of the modern technology surrounding finding lodging, why would you— those interactions are all on you. You’ll have to reply to all the interested people, or you’ll have to deal with the house being a money and time-suck while there’s no one in it. It takes time to fill vacancies and it takes time to clean up after past tenants. If you find that you won’t be able to clean up after past tenants with the normal application of a vacuum and really good dusting, then you might have to remodel before you can entice new renters to sign a document with you. That means that house is costing you more money than it’s bringing in that year. A large remodel usually won’t leave much room for you to profit on the rent, you’ll merely be recovering the costs you already put into the property.
Return On Investment
No one is owning a rental for fun. This real estate venture was originally about making money and it’s likely that you won’t start making money on the rental very soon. With initial investments in the property to get it up to snuff as well as the time spent finding tenants, drafting up a contract, and showing various potential tenants the property, it’s likely that you’ll have more than a spot of trouble getting back what you put into the rental house for the first couple of years that you own it, let alone actually making a profit. While you may get your money back, you won’t ever get your time back. In that sense, you’re investing with so much more than just money. So, the real question is: Is this worth your time?
Sell Your House For Cash
Liquidate this property and easily side-step all of the hassle of dealing with bad tenants, their pets, and their whims altogether. Opt for cold, hard cash instead of a string of inconveniences. Sell your house for cash now to Colorado All Cash.