Sell a Rental Home: Is Being a Landlord Worth It?
As one of the leading home buyers in the Charlotte area, there are many occasions where we have had landlords come to us who want to sell their rental property. Quite often, they want to get out of the hassle of having to constantly deal with the problems associated with owning property and dealing with tenants. Months of desperation often makes the conversation start very bluntly. It is not uncommon for a landlord to call us up and simple state “I need to sell this rental property.”
Over the summer, JMS HomeBuyers have had quite a few rental homes which we have put under contract. Real Estate investors will always sing the praises of renting out a property, saying it provides them with passive income. Judging by the exasperation of our clients, we believe that making an income as a landlord is anything but passive. The houses we have put under contract from landlords recently have all wanted to sell a rental property because they were tired of having to deal with the costly repairs associated with home ownership.
Sell a Rental Property
You would be forgiven for thinking these landlords wanted to sell a rental home because they had the type of tenants which were tearing up the place. This is not the case. All of the homes we put under contract recently were rented to long-term tenants who took good care of the property. They wanted to sell a rental property simply because the normal wear and tear associated with home maintenance was creating repair bills which were astronomical.
While a landlord can make an easy, passive income from renting out a property, the bills associated with maintenance are still the responsibility of the landlord. When faced with the necessity of fixing up expensive issues with the house, these landlords realized that they were better off getting out of it and to simply sell the home. Some of the costly repairs
associated with the properties we have recently put under contract include:
- New Air Conditioning
- Roof Repairs
- Foundation Repairs
- Siding Repairs
- Overgrown Trees & Yard Maintenance
These issues are just regular wear and tear for a home, but when you start taking a look at the enormous bills which come in to set these things right, the monthly income from rent was simply not worth it, and the landlords were better of getting out and selling their rental home.
Sell a Rental Home: What Happens to the Tenant?
One of the common questions we have from a landlord who is looking to sell a rental home is what will happen to their tenant. Currently, we are working with a landlord who is selling the property while the tenant is still inside the home. We are working alongside the seller to make sure the transition is as easy as possible on the tenant. Firstly, the tenant is given a 60 day notice that the home will be sold, and the deal will be closed once they have moved.
Those who sell a rental home can often find it a bit awkward that we have to go through the house while the tenant is still inside, however, in reality, we only have to go through the house at the initial stage, while the tenant and the seller are present, and then once again at the time of closing, when the tenant has left.
Those who sell a rental home to a cash buyer such as JMS HomeBuyers find a simple and easy process in comparison to listing a rental house in a traditional way. Tensions can be apparent and problems can arise when tenants are constantly forced to step aside as a constant stream of potential buyers walk through for a showing. It is much simpler to sell a rental home to a cash buyer, as landlords don’t have to manage their tenant in order to make sure the process goes through smoothly and they find a buyer.
With JMS, landlords already have a buyer who is ready to go. We are perfectly positioned to make an offer to landlords who want to sell a rental home, the only thing that will hold up the process is the 60 days required for a tenant to leave. If the tenant is happy to go early, we can complete the deal in a matter of days. Call us today to discuss how we can help you sell a rental property, and free yourself from the hassle of being a landlord.