Tired of Being a Landlord in Colorado Springs? Here's the Problem.
Owning investment property can cause serious anxiety. There is constant home maintenance and hiring unreliable property management companies. There is also dealing with bad tenants. Sometimes leasing out your rental home isn’t a sound or lucrative decision. So what do you do when you're tired of being a landlord?
There are several reasons a homeowner might be tired of being a landlord. One of the biggest reasons includes losing capital to maintain your property. Most landlords expect to pay for minor repairs, landscaping, and other consistent home maintenance. However, unexpected expenses can damper your perceived profit margin. Replacing faulty appliances or repairing a leaky roof can create a negative cash flow. This deters most landlords.
Business Insider’s Antonia Farzan decided to opt out of becoming a landlord. One of her qualms originated from a lack of steady cash flow. The decision wasn’t easy. Farzan belongs to a family of landlords. Both her mother and grandmother managed several rental properties for additional income. Yet, once Farzan was old enough to rent out her own property, she left her family’s business to seek more secure opportunities.
"Owning a rental property doesn't mean that money will just magically appear in your bank account every month" Farzan notes. Occasional but major expenses are part of a rental property’s contingency plan. But the associated costs are often much higher than initially anticipated. Not comfortable with the possibility of losing money on your rental property? Ridding yourself of the responsibility might be your best option.
Property Management Companies
Many rental property owners seek the services of third parties to manage their estates. They do this for a myriad of reasons, from saving time spent on answering tenants’ calls to hiring contractors to fix basic issues. But hiring property management companies can be a more costly and unsatisfying solution to conflicts.
Property management companies are an added expense, further subtracting from a landlord’s potential profit. Ron Leshnower, a legal publisher for NOLO, confirms this. When inquiring about management groups, "expect to hear quotes ranging between 5% and 10% of what you collect in rent revenue". Although the percentage seems low, 5 to 10 percent can be bank-breaking in a down rental market. A landlord can lose out on a huge portion of profit when hiring a property management company.
The expenses don’t end with monthly management fees however. Property management groups are also known to overcharge for simple repairs. A leaky faucet can turn into a several-hundred-dollar call to a plumber. A loose floorboard can cost the landlord thousands when the management company hires an outside contractor. Without a keen eye, property management companies can take advantage of your hands-off approach.
Dealing with tenants is one of a landlord’s most burdensome duties. When hiring property management groups you trust them to deal with high-maintenance renters. Yet, property management often don’t know what to do when tenants tear up your house.
Sometimes accepting bad tenants cannot be avoided. To prevent monetary loss, property management companies will fill a rental with the first tenant that applies. They'll often forego an extensive background check. This is a costly mistake. Bad tenants can default on lease agreements or steal appliances or furniture. They can even do irreparable damage to your property! The damage dealt can transform your newly updated home into an undesirable fixer-upper. You'll be tired of being a landlord in no time.
Large property management companies have competing priorities concerning handling your rental home. These management companies will be juggling multiple landlords and their properties. They'll often mishandle or neglect your property due to the sheer volume of complaints. Are they a 24-hours group? If not your tenants will be neglected during afterhours. Instead, they'll call you with emergencies. "Be prepared for calls in the middle of the night," warns Forbes’ Harlan Landes
Selling with a Real Estate Agent
Property management companies can be 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, many real estate agents have a hard time selling a house with tenants.
Some realtors have trouble complying with tenant-landlord laws. Most states give the tenant the right of first refusal (ROFR). The ROFR is a contractual right. It 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. You could end up spending 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 residential property. If the tenant is unwilling to show or unable to keep the property in showroom condition, you may lose out on a sale.
Michele Lemer from Bankrate.com warns of this. "Many real estate agents are reluctant to show buyers a tenant-occupied home. They expect resistance to allowing visitors into the property. They assume the condition will be less than optimal."
It’s true. Some tenants can be uncooperative and downright hostile during the selling process. Others refuse to pay the last month’s rent before closing. Before hiring an agent to assist in selling a house with tenants, take your time. Decide whether they’re worth the headache and money it costs to sell a tenant-occupied property.
Selling to a House Buying Company
If selling your property is the best option when you’re tired of being a landlord, how do you sell your house most efficiently with tenants? In many circumstances, selling to a house buying company is the best option. Utilize the offers made by a house buying company. It'll often give you the simplest and least stressful solution to many property problems.
You needn’t 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 selling to a house buying company! House buying companies have the expertise to handle even the stickiest lease agreements. They allow 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. Neither do you have to worry about repairs, additional fees, or leasing agreements. If you’re tired of being a landlord, selling to a house buying agent is a dream come true.
Sell Your House to a Colorado Springs Cash Home Buying Company
Another option is to sell your home to a cash house buying company. You won’t have to worry about any repairs. You save thousands on agent commission costs. You can also receive a no-obligation cash offer in just 24 hours.
Sell My House to Smith LLC gives you a cash offer within one day and you can close whenever works best for you. You can have your Colorado Springs house sold in a week!
If you need to sell your Colorado Springs area house fast and would like to get a no-obligation cash offer, call us now at 719-629-7740. Whether you decide to sell your house to us or not, we would like to help answer questions you might have about the process.
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