Problems You Might Face
Selling a property is far from straightforward. Selling a property as a landlord is even more difficult, however. Unfortunately, landlords face their own unique set of hurdles that have to be overcome before they can hand the keys over to a new owner.
Repairs to the Property
The trouble with tenants is that sometimes they don’t look after the house as well as they would their own. This can mean that quite severe repairs can be required to a property before selling. But it’s not just a case of getting the contractors in and paying for the repairs. Depending on what state tenants left your property in, you could be looking at tens of thousands of dollars in repairs. But you also still have to work around your current tenants. You may find it difficult to repair the property with the tenants still living there, which means that you will have to evict them earlier than necessary and go several months without rental income.
That’s if you sell the property using a realtor or by yourself. If you opt to sell the property directly, however, you will not have to complete any repairs at all. The offer you receive will take into account the repairs. And, while it might not be as much as you would expect the property to be worth in perfect condition, it will be comparable to the true value of the property minus the costs of repairs.
Can’t Give Tenants The Notice They Need
As a landlord, you have a responsibility to give as much notice to your tenants as possible. When you’re at the mercy of the property market, however, you have no idea when the sale of your property might complete. Not only do you have to find a buyer, you’ve also got to wait for their property chain to complete before you can hand over the keys.
This will result in one of two scenarios. The sale may come too quickly and leave your tenants with nowhere to go. That’s if you can even give your tenants the notice they legally require. Alternatively, the sale may come too slowly. You could be left without a stream of income for months if your tenants take heed of your notice and leave quickly.
The truth is the property market just can’t guarantee a sales date. But by selling direct, you and your tenants can choose the date on which you complete. That means if you are in a rush to sell the property to pay off another debt, you can complete as fast as you want. Conversely, if you need to give your tenants time to move out, they can have all the time they need.
Viewings are Difficult With Tenants
If you’re selling your house with an agent or by yourself, eventually people are going to want to see the property. This isn’t so easy with tenants, however. After all, it is illegal to show up at their property and let yourself in unannounced. That means you have to arrange every single viewing for a time that suits them. Ultimately, this means your property could end up being on the market far longer than it has to be.
By selling direct, this problem goes away. You only need to show the property one time. That’s it. The offer can be made on just one visit and, if you accept, the company won’t need to visit again until you hand over the keys.
Dealing with Agents When You’re Out of State
If you’re an absentee landlord fed up with dealing with tenants in another state, it is going to be even worse dealing with realtors, property managers, tenants, and lawyers. It can be overwhelming to keep track of so many people.
By selling direct, you only have to deal with one person—your consultant. This will be the person who values your property and makes an offer on behalf of the cash investment company. If you accept the offer, the consultant will handle absolutely everything on your behalf.