If You Are Serious About Doing A Short Sale, Then You Might Not Want To rent It Out!
For those of you who have investment properties and were thinking of renting them out for below market rent to supplement your income while performing a short sale, let me take the time to explain the pitfalls this might have on your short sale.
First, the situation:
You either need to move or have a vacant rental property and need to perform a short sale. You get someone in who states that they will rent the place while helping you sell it. This nice new tenant is everywhere! Maybe they even sell you a sad story.
The Pitfalls of Renting this Property Out:
1. The tenant becomes hostile and does not allow any showings.
2. The tenant does not pay rent.
3. The tenant damages the property and sells everything they can (including the toilet) on Craigslist!
4. The tenant uses the property to commit crimes, such as the selling and using of narcotics. This becomes your liability!
5. The tenant violates your local Home Owner's Association rules and policies, which in turn, places possible fines onto the property.
6. The tenant sues you for breach of contract.
7. The tenant does not maintain your property, making it less likely that you will get an offer to purchase.
As a homeowner, I encourage you to think twice before allowing a tenant to rent a property in which you want to short sale.