Have tenants ruined your house? Fed up with being a landlord, but don’t know how to sell a damaged rental house? We know how frustrating and stressful that can be.
Owning a rental property is a great way to make extra money. For properties in ideal locations and in excellent condition, investors can earn enough for home upkeep and management with a little extra leftover to pocket afterwards.
But with any potential for profit, there’s potential for a financial pitfall. Many landlords and rental property managers share a single horrifying thought: extensive damage to their property that keeps them from renting it to future tenants. Whether it’s due to external factors such as severe storms or caused by problematic tenants with a lack of respect for the property, unrepairable damage is a probability most landlords face. These issues can be time consuming and costly to fix and leave a landlord wanting to know how to sell a damaged rental.
Identifying the Damage
There’s no good time to discover property damage as a landlord. Some homeowners will notice their property needing major repairs only after a move-out inspection when the previous tenant’s lease is up. Other landlords discover unrepairable damage while in-between tenants.
Finding structural or cosmetic flaws due to a tenant’s mistreatment can cause serious anxiety no matter when you stumble upon it. If the signed lease agreement allows it, landlords can withhold security deposits to pay for the fixes. Often times, this paltry amount is too small to repair the worst property issues. If the tenant in fault has already moved before the landlord discovers the damage, there may be little recourse for landlords seeking reparations.
On the other hand, landlords may find their property needing serious repairs after facing external circumstances. Natural disasters, burglars, unwanted pests, and deterioration from a property’s vacancy can all factor into the home’s need for expensive repairs. Unless the homeowner has insurance covering these potential threats, they’re unlikely to receive payment for the fixing up of the property.
It will require paying for the repairs out of pocket. For landlords trying to maximize profit or unable to afford the repair, this can mean selling the damaged rental just to stay financially afloat.
Severe damage to a home can greatly devalue the homeowner’s investment and push them to sell. The property value after damage is dependent on the extent of what needs to be repaired. While minor water damage or cosmetic blights can be fixed with relative ease, structural flaws can greatly decrease the home’s value.
To know if the property damage is too great to still earn a profit in the future, landlords must calculate costs to repair and subtract that from what they gain from monthly rent. Some landlords have enough money in savings to spend on emergency cases, while others make barely enough rental profit to pay their own monthly mortgage. For the latter, discovering damage early on and figuring out the property value after damage is essential in making the decision to sell.
Handling the Damages
After being forced to face extensive damages, many property owners don’t know all their options. Insurance companies could deny claims and tenants can leave landlords fitting the bill. Sometimes a property owner must handle expensive repairs themselves.
When this occurs, the homeowner’s first option is to pay the bills out of pocket. This is where having an emergency savings fund comes in handy. Landlords will most likely need a significant sum to pay contractors, repairmen, and appraisers to reassess the property value after damage. It won’t be cheap, but it’s not impossible for those that have planned beforehand for sudden home repairs. However, if a homeowner financially depends on the rental for income and is not generating any due to the property damage, they might be forced to sell a damaged rental to avoid debt.
Those who choose to handle the repairs themselves must be wary. While doing home repairs yourself can save money, it also comes with detrimental risks. Making major repairs requires expertise of local building codes and possible HOA guidelines. If a fix doesn’t meet the former, it can cause the rental to be shut down completely. Landlords wishing to do their own repairs should also consider the risk to their personal health. For home repair novices, a personal injury is likely and can cause even more financial woes.
Sell a Damaged Rental House for Cash
The best option for landlords facing costly home repairs is to simply sell a damage rental and move on. Though losing a source of monthly income can seem fiscally irresponsible, it’s in the homeowner’s best interest to sell when the burden of owning outweighs the potential profitability. While many prospective buyers are looking for homes in pristine condition that are move-in ready, others are attracted to fixer uppers for their potential. For property owners unwilling or unable to pay for repairing an excessively damaged home, this option requires no money and very little effort.
Typically, trying to sell a damaged rental house is a market no-no. Houses with damages are less likely to sell, and if they do you won’t be getting your money’s worth.. They are more likely to draw the attention of less serious buyers willing to submit lowball offers to procure the property cheap.
However, if you need to sell a damaged rental house with water damage or needing any other major repairs will also appeal to other investors and we buy houses companies. These professional home buyers are more interested in the home’s potential renovation than the risk involved in restoring it. They will offer fair cash offers for homes in any condition.
Selling to a we buy houses company comes with other benefits to landlords desperate to sell a damaged rental. Conducting an as-is sale allows the landlord to be rid of the property before letting it sit vacant for months while repairs are made.
Homeowners won’t need to pay those monthly mortgage payments or the home’s general upkeep if the property is immediately sold to an interested party. Selling to a cash buyer also allows the homeowner to reinvest money from the property’s sale after securing a substantial cash offer. This, too, is a better option than waiting months to fill a damaged property with new tenants.
If your rental is too damaged to repair, contacting a local cash buyer is your best option. They can ensure a quick closing at your convenience, and they buy properties in an condition.
Get Rid of Your Damaged Rental
We know how crazy tenants can be! We also know how impossible it can be to rent, or sell a house that tenants have trashed. That’s why, at I Buy SW MI, we focus on how to help you out of your sticky situation.
We’ll buy your house for cash as-is. No need for you to repair anything. We’ll take your house damage and all! All you need to do to sell a damaged rental house for cash ASAP is contact us! Don’t be afraid to call, we’re always happy and ready to answer any questions you have at: 231-392-3262.