Category: How To Sell a Rental Property with Tenants

For those who may be ready to sell yet can hold onto a house that is ready for rental for a few years longer, the rent-to-own scenario provides some perks that make rent-to-own an option worth considering. 

There is a large buyer pool waiting for these opportunities, seeking to attain the lifestyle that homeownership affords before they’re ready for a mortgage. For some landlords, locking in a reliable and responsible tenant to steward the property rent to own agreements can be a great way to sell a rental property with a tenant already in place. Read on as we explore five benefits of selling your house via rent to own in [market_city] 

Equity

One benefit of selling your house via rent-to-own in [market_city] is in the equity that will build over the time of the contract so that when your property closes, you will make more significant gains on the sale. By selling directly to a local professional home buyer like those at [company], we can help you understand the projected returns you can expect.

Speed

Another benefit of selling your house via rent-to-own in [market_city], there’ll be no delay in your receipt of the deposit funds, and your steady cash flow will begin immediately, offsetting any costs of holding the house. When you work with a local professional home buyer like those at [company], you’ll be counting your cash in a matter of days; with the power of cash and our full-service team of highly regarded local pros moving at lightning speed to help sellers like you.

Rental Income

Much like squeezing the final precious drops of cash out of your house, with rental rates quickly rising, you could gain a significant boost in returns on the investment you have made in the house before finally exiting the property. Rental premiums, added to the monthly rent, are another benefit of selling your house via rent to own in [market_city]. If the buyer exercises their buying option, the rental premium applies towards the downpayment. However, should the buyer fail to exercise the option, you’ll keep the option fee you charge for their down payment and the premium payments. Selling via rent-to-own to a professional home buyer like those at [company] means you won’t need to worry about your buyer backing out or finding another buyer for your property down the road.

Property Management

Another benefit of selling your house via rent-to-own in [market_city] is that, unlike typical rental properties, there will be minimal for you to do in the role of landlord other than receive your income. Therefore, you can design the contract to negate the impact of routine repairs and maintenance. Most of these expenses will fall upon the tenant, who will treat the property as if it was their own. Often, there is a top-dollar limit on the repairs for which they’re responsible.

Additional Savings

Another plus of rent-to-own sales, you won’t be paying the monthly mortgage and utilities you would be responsible for during a listing period on the market, saving you even more. Another of the benefits of selling your house via rent-to-own in [market_city], when you work with a local professional home buyer like those at [company], there are no commissions, closing costs, or hidden fees to come off your profits. 

The local professional home buyers at [company] are ready to buy – at your asking price via rent to own. If you’d like to talk to one of our seasoned pros about the benefits of selling your house via rent-to-own in [market_city], we’ll answer your questions or concerns with no obligation. The team at [company] is proud of our work helping our neighbors here in [market_city] solve problems, and we want you to feel good about working with us long after the closing. Call [company] at [phone].

There is a great deal to learn about the real estate investment business. While everything can look great about your investment property on paper, dealing with people is not so cut and dried as working with numbers. Whatever you do, do not skip any step in screening tenants, especially checking references and contacting previous landlords. Even with the most up-to-date and thorough screening processes, landlords can expect even the best tenants to cause some damage.

Tenants are the life bread of your business plan, and you must understand what kind of trouble you may face if you lack previous property management and don’t have strong people skills. By taking the time to understand the consequences, you will know where to focus your time and energy, and resources to avert damage to your investments before it ever occurs. Read on to discover what to do if your tenants cause damage to your [market_city] rental property.

Cause

The first thing you need to do if your tenants cause damage to your [market_city] rental property is to carefully examine the rental unit to determine the cause of the damage. Unfortunately, accidents happen; even the best of tenants may cause unforeseen damage that goes beyond the normal wear and tear that is a part of the expense of owning rental properties. Other damages can occur when tenants fail to maintain their housing correctly. And while dealing with repairs is a necessary part of rental property management, landlords could prevent damage from angry tenants for tenants. 

Tenant Responsibility

Once your tenants cause damage to your [market_city] rental property and you have determined the cause, you will need to take steps to ensure the tenant pays the repair expenses they are responsible for following the terms outlined in the rental agreement. Often landlords deduct the total costs for such damages from security deposits at the end of the lease agreement. If the damage is extreme, you may need to take legal action against the tenants. Should your attorney or insurance company request the information, you will require photographic evidence and documentation of the damage and keep any estimates and receipts from the repairs.

Landlord Responsibility

If your tenants continually cause damage to your [market_city] rental property, you should examine your property management skills and responsibility in maintaining tenant communications. For example, tenants may learn that you simply do not respond to their calls, causing minor problems to become significant damage. Middle-of-the-night phone calls and disputes over parking spaces can become irksome, but these little things matter more than you may realize. Building solid relationships with tenants can help avoid issues with deliberate damage and help maintain the integrity of your property. 

[company]

Working with [company] makes it easy to be a landlord. Before your tenants cause damage to your [market_city] rental property, why not let the pros at [company] help you with your property management game? [company] knows the laws that protect landlords like you and can help you with your screening process, rental agreements, and every other aspect of managing your investment properties, lowering the overall risks of damage ever happening. From real estate investment and exit strategies to locating the best rental properties in [market_city], [company] can help you build your skills; [company] makes it easy to be a successful landlord! [company] has a full-service team of the most highly regarded experts from every walk of the real estate industry. [company] can do it all or work with you to help you manage your properties. Let [company] help you keep your tenants happy and reduce your turnovers and repair expenses. Contact [company] at [phone].

Anyone who’s been a landlord for any length of item knows that headaches and hassles are simply part of the job description. And number-one among those headaches/hassles is problem tenants. For truly bad tenants in [market_city], eviction is always an option. But that can be a lengthy and expensive process, so it’s better to find other ways to deal with bad tenants to solve the problems. Below, you’ll find 5 ways to deal with bad tenants in [market_city] in order to avoid having to have recourse to eviction.

1. Tenants Who Won’t Pay

A common category of bad tenants in [market_city] is those who just won’t pay their rent. And this, of course, will adversely affect your cash flow.

The thing to keep in mind, though, is that tenants don’t pay for a variety of reasons, and often they’re not being malicious or trying to stiff you. “Tenants.” industry experts say, “can withhold rent from landlords for a number of reasons, from cash flow shortages or temporary unemployment, to repair and maintenance disputes. Communication is critical when confronting this issue, and it’s important to understand the tenant and the nature of the issue and try to negotiate, if possible.”

As a landlord, you have a couple of options to solve this problem. The first and most effective is setting up a payment plan that makes paying more manageable for the tenants. You could, for example, when tenants are struggling financially . . . 

• Implement “a policy of accepting a partial payment from a resident once per year”
• “[P]rorate the late fees and delinquent rent over the remainder of the tenant’s lease”
• Allow weekly partial payments instead of larger monthly payments
• Apply the security deposit to the delinquent rent payments

Another option is to change the tenants’ living arrangements. “If a tenant can no longer afford the rent, landlords can set them up with roommates or move them to smaller, lower-cost units.”

2. Tenants Having Problems With Other Tenants

And then there are those who are bad tenants in [market_city] because they are too loud or just obnoxious. Despite your best screening efforts, this kind of tenant can still slip through and can problems for you and other tenants.

The first step in dealing with this kind of problem tenant is to encourage and allow the tenants to resolve the problem themselves.“Make a clause in the lease that specifically states that all tenants are to make every able attempt to settle arguments without your intervention. Include a message stating that if you must get involved, one tenant might not be pleased with the resolution, and someone stands a good chance of leaving the property.”

But you may have to step in. In that case, mediation may be called for. Just be sure to “explain the consequences in a calm manner to aid in resolution. At some point, your residents hopefully understand that the net impact is on them, not you.” Also make “sure that any lease or rental agreement contains property regulations and rules, in addition to tight clauses regarding these disagreements.”

3. Tenants Who Pay Late

Some tenants do pay, but they always pay late – not withholding payment, but just late. In dealing with these bad tenants in [market_city], it’s wise to keep in mind that the reason for late rent payments may be fairly innocent, something like mere forgetfulness. 

You could meet with these tenants “to discuss their situation and why the rent is always late. You could also do things like waive late fees and other penalties if they promise to pay any late rent in full.” Another effective tactic is to send out payment reminders. Though it takes a little extra effort and time, it could be an easy fix for the problem.

4. Don’t Renew the Lease

When the methods outlined above for dealing with bad tenants in [market_city] don’t produce results, you still may not have to resort to eviction.

An option you have at this point is simply to refuse to renew the lease. Just be aware that this typically isn’t an immediate solution and that you need to “understand your local laws related to tenant protections before you do this. Usually, you can send your tenant a letter that informs them that their lease will not be renewed once it expires. You may need to give them 30, 60, or 90 days’ notice, depending on your state and local laws.”

5. Consider a “Cash for Keys” Agreement

Another last-resort solution, short of eviction, for dealing with bad tenants in [market_city] is the “cash for keys” agreement. It will cost you, but it will also get a bad tenant out of your hair and solve the problem. “A cash for keys agreement is a legally binding contract, whereby you pay a tenant a lump sum of money, and their lease is canceled, and they have to move out of your property.”

But, you may be wondering, why should you pay a bad tenant to move out? For the simple reason that it makes financial sense.

“It can easily cost $5,000 to evict a tenant and take months to do so. If you can just pay $1,000 and have a bad tenant move out within a week, you’ll be able to save a bunch of money – and start renting your property to a more qualified tenant right away.”

But Be Careful . . . 

Whatever method you choose to deploy in dealing with bad tenants, make sure you’re aware of all the legal ramifications and implications. Tenant-protection laws are far broader than they were just a few years ago. Your best bet is to consult an experienced [market_city] investor to get help understanding exactly what you can and can’t do as a landlord. So for assistance dealing with bad tenants in [market_city], contact us today at [phone].

The exit strategy you use to sell your house can make all the difference in earning the highest possible returns on your real estate investment. An extremely lucrative alternative to selling your house outright, lease options offer a way for you to earn a higher return on the sale. At the end of the agreement, typically one to three years, they can exercise the option to buy the home or walk away, and you keep the initial option fee that you collect upfront as a down.

Much like having tenants, you’ll be renting out your property. However, these tenants have much more at stake than the average tenants, as they are, in essence, test-driving ownership of the property. These tenants are willing to pay extra for the chance at living the lifestyle of homeowners while correcting any missteps with their credit or building savings for their down payment on the property. With the right tenants and a thoughtfully constructed lease option agreement, many investors learn to appreciate this arrangement’s benefits and begin investing with a lease option strategy in mind. So read on as we explore using a lease option to sell your rental property in [market_city].

Asking Price

Because you’re in the driver’s seat, you can set the sales price for the property now when you use a lease option to sell your house in [market_city]. Often set above market to account for the appreciation estimated to occur over the contract term, while you take the risk there could be a sudden hike in values, the tenant takes the risk that values drop.

Option Fee

Using a lease option to sell your house in [market_city] means that you’ll collect an initial option fee ranging from one to five percent of the sales price, though option fees of up to twenty percent are not unheard of, and the fee is typically non-refundable. With the national median listing price for active listings being around $450,000 as of May 2022, 5 percent would be $22,500, which would apply towards the purchase if the tenant exercises the option.

Tenants Maintain Your Property

While you’ll still hold the title and be responsible for the taxes and insurance, everything else will fall on the shoulders of the tenant when you’re using a lease option to sell your house in [market_city]. So, for example, tenants typically carry the financial responsibilities of maintaining the home and even making repairs.

Above Market Rent

You’ll make above-average rental income using a lease option to sell your house in [market_city]; the portion of rent paid at above-average rental rates is called the rent premium. The buyers would then deduct the amount paid into the rental premium over the contract term from the sales price upon exercising the option. Of course, if there is no purchase, you’ll also keep these funds.

Talk to one of our highly seasoned professional home buyers at [company] today about your property, with no obligation. At [company], we want you to know you made the best deal and feel good about working with us long after the closing. That is why at [company], we’ll compare the numbers of a traditional listing vs. the lease option method and even make you an offer to buy your property directly, as-is, for cash. At [company], we’re fully transparent, providing the detail of how each number in our calculations so you can make an educated decision about what works best to sell your [market_city] house. 

Ready to learn more about the win-win advantages for sellers of using a lease option to sell your house in [market_city]? Call [company] at [phone].

There are a variety of reasons why your tenant may ask to sub-lease in [market_city]. Some landlords are fine with it, while others are not. Learn more about the process in our latest post!

Sublets can work out just fine so long as the tenant has received the permission of the landlord. All contracts need to be comprehensive so that all parties are aware of their roles. When your tenant sublets to someone else, they are entering into a new agreement, however, their lease with you, the landlord, is still in effect. Taking the necessary precautions will ensure your rental property remains a healthy investment.

Legalities

Before you agree to let your tenant sublease the property to someone else, you will need to make sure you are operating by all rules, regulations, and bylaws of your community. You don’t want to find yourself penalized or fined for letting your tenant rent the property to someone else on your behalf. Once you have researched this, you can take the next step to letting your tenant sub-lease the property out to someone else.

Your tenant will need to have permission from the landlord to legally sublet the property. However, there are some cities that allow tenants to sublet under certain circumstances, even if the lease forbids it. As the landlord, you will want to make sure you know what the specific rules are in your city.

Proper Contracts

When you are letting the tenant sublease the property, you’ll need to make sure all contracts are filled out accurately and legally. The contract needs to be written to eliminate your liability should something go wrong. You will want to protect yourself in this situation at all costs. Make sure to have all of the specifics worked out ahead of time. Who will the sublettor send the rent check to? How will utilities be handled? There are a number of things that should be in writing before someone new moves in.

Responsibility

It needs to be made very clear that if the person subletting the house doesn’t pay rent, your original tenant is still on the hook. They are ultimately responsible for fulfilling their role in the lease you have with them. If rent isn’t paid, if the property is damaged, or if the person subletting skips town, they will need to pay the rent and fix the property per the original lease agreement.

Advertising

If your tenant is advertising the house for sale on their own you’ll want to make sure that they are abiding by all fair housing laws. By not doing so, they can put you at risk of violating the law. If you allow them to advertise, make sure that you review what they are saying to make sure everything is done legally.

Tenant Screening

Will they be doing all the screening or will you want to be involved in the process? You should set specific criteria so that your tenant doesn’t end up subletting to someone who will be a nuisance. The person moving in needs to be responsible and able to pay the rent each month. Encourage your tenant to collect a deposit to help cover the loss should anything go wrong with the living arrangement.

Allowing your tenant to sublet the property can be beneficial in many ways. Let’s say you have a great long-term tenant who has taken a position elsewhere for 6 months. Having them sublet the property to someone else is better than a vacant house or having to battle them over a broken lease. When the right subletters move in, the arrangement can beneficial for everyone involved. A short-term renter will find housing, your tenant will be able to return to the house when they are ready, and you will continue to collect your rent check each month.

Learn more about how to handle a sub-lease in [market_city]! Contact us today! [phone] 

In order to bring more long term value to the rental property–especially if you’d like to sell in the near future–it’s often recommended a landlord should keep up with regular maintenance any ultimately make the necessary repairs. You can find ways to save money making repairs in order to always keep your property in tip-top shape. Repairs aren’t necessarily the place where you want to skimp on costs–however, there are some great ways you can save money on repair costs for your [market_city] rentals. Below, learn about some of our favorite ways landlords can save money making repairs on your [market_city] investment properties.

Build A Reliable Team

Partner up with some contractors who you can turn to again and again. This way you will attain the peace of mind in knowing the repairs are being done properly and that you have someone working on your house who is true to their word. You won’t have to worry about poor work ethic or the repairs being completed in the wrong way. You can also have a team readily available to handle the cleanup once the repairs are completed. Every good landlord will have a go-to cleaning service they know and trust to get the job done.

Deal With Scheduling Repairs Yourself

When you leave the repairs up to the tenants, it is like handing them a blank check. They aren’t going to be worried about saving you money, they are going to worry about getting the problem fixed. If you want your repairs done right and done at a fair price, it is best for you to handle them yourself, finding your own people to do the job. Once the repairs are completed, you can make sure they are up to your level of satisfaction. If your tenant had chosen the vendor, you might find yourself having to pay for poor workmanship.

Screen Your Tenants Thoroughly

Sometimes the repairs are needed because your tenant caused the damage. One way to avoid such problems is to ensure you are screening your tenants thoroughly. Talk to your prospective tenant’s past landlords, and run background checks on anyone who will be living in your home. Even if you know the person who wants to move in, don’t assume they will take as good care of your property as you need them to. Always encourage your tenants to report any problems or unusual things they are noticing. If your tenant is able to help you discover a leak right away, you will be able to save thousands in water damage costs you may have otherwise been forced to face.

Make The Repairs Yourself

You don’t need to be a carpenter or plumber to deal with basic repairs the property needs. Many things can be handled on your own with just a little elbow grease. Of course, this should only be done if you are confident in your abilities and know what you are doing. Don’t bite off more than you can chew or you are likely going to find yourself with even more repairs to make! Know when to call in a professional and when it makes more sense to handle it on your own. Sometimes the DIY aspects of being a landlord can appear unglamorous, but when you see that tremendous ROI, it suddenly won’t seem to matter so much.

Landlords face many costs over the life of their investment. By being able to make repairs in a cost-efficient manner, landlords can save money, and put more of their profits in their pockets.

To learn more about how landlords can save money making repairs to their [market_city] properties, give our team a call or send us a message today! [phone]