Should I Sell My Rental Property? What To Do If You’re Stuck in Landlord Hell?

By
Real Estate Broker/Owner with Metro Cash Offer 149848

Should I Sell My Rental Property? What To Do If You’re Stuck in Landlord Hell?

Being a landlord has its benefits, but sometimes it can be really tough!

People often decide to buy rental properties because they’ve heard it can make them money. No one lied to them! Done right, being a landlord can indeed be very lucrative. However, the YouTube videos and blog articles on the internet talk about rental properties being a source of “passive income”, and nothing could be further from the truth! Making money as a landlord takes a lot of work.

Rental Income Is Not Passive Income!

Owning and managing a rental property is a job. Some of the tasks include:

  • Marketing your property
  • Interviewing and vetting prospective tenants
  • Staying on top of all the legal requirements
  • Dealing with difficult tenants
  • Ensuring the property is maintained, including routine and major maintenance
  • Getting things repaired when they break down

You can choose to outsource this job to a property manager, but that also comes at a cost that reduces the rental income in your pocket.

Small Landlords Are Often One Step Away From Financial Disaster

Most landlords we’ve met have done their due diligence. They have accurately estimated their mortgage payments and all the monthly expenses for their rental properties. They diligently put some money aside from each rent check towards capital expenditure (that roof will need replacing one day!) and also for tenant turnover and vacancy. At the end of the month, they pocket the net proceeds. This income, when it comes in regularly, can be a welcome boost to the monthly budget.

But imagine if the roof were to fail tomorrow. Imagine if a pipe bursts while your tenant is on holiday causing extensive water damage. Or what if a tenant stops paying and Oklahoma eviction laws mean it could take months to get the tenant out, and in the meantime, the tenant completely trashes the property?

If you don’t have money in the bank today for a major renovation of your own home, you probably don’t have that money lying around for your rental property. Measuring the cost of major renovations or capital expenditure over many years is one thing. Paying large amounts of money out of pocket today is a different matter altogether!

Tired Of Being A Landlord?

If the work of being a landlord is getting you down, or if the costs are hurting your bottom line, you might consider selling your rental property.

You Can Sell Your Home For Cash!

Suppose you were selling through a traditional real estate agent. You’d have to wait until the property was vacant, you’d need to get the house ready for sale by doing expensive renovations, and you’d have to pay the agent their commission and also closing costs. It can also take weeks, if not months, to finally get to the closing table, and get your money from the sale.

Selling your home directly to a cash buyer is a much faster process and you will avoid many of the costs of a traditional sale through an agent. There are typically no real estate agent commissions or closing costs. Even better, you can often sell the house in As-Is condition, and without an appraisal by the bank or home inspection. Cash buyers will also often purchase properties that have a tenant in place. This is the benefit of selling directly to a professional property buying company – they understand property as a commodity and are familiar with the challenges of owning and managing rental properties. What might seem like a problem for a family looking for a home, is not a problem to an investor.

Imagine, in just a few weeks you can walk away from your rental property with money in your pocket!

You Can Sell, And Continue To Earn Passive Income!

Another alternative is to sell your property providing seller financing to the buyer. If you are looking for a fast sale of your rental property so you can get away from the stress and expense of being a landlord, this can be a good option.

  • If the property needs expensive repairs to get it rent-ready or sale-ready, you could make your property more attractive to prospective buyers by providing seller financing.
  • You can sell and close even faster since your buyer avoids the mortgage process through a traditional lender.
  • Once financed, the deed and ownership transfer to the buyer. And you no longer have to deal with tenants and toilets!
  • There is a potential to earn better rates than you would for investing your money elsewhere.
  • You can manage any risk of the buyer defaulting on their loan repayments, by having a sales contract and promissory note drawn up by a qualified real estate attorney!

Landlord Stress? Call A Trustworthy Partner!

Metro Cash Offer has been around for a while, and we’ve closed over 1200 transactions to date!

If being a landlord has become a nightmare for you, we can work with you to find the right solution!

We will answer any questions and give you more information about how a cash purchase or a seller financing deal can work for you. We can even take over payments on an existing loan you may have.

Learn more at https://www.metrocashoffer.com/ 

Comments (6)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Derik Keith very good helpful report about should I sell my rental property.

Jul 05, 2022 08:20 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Jul 06, 2022 03:20 AM
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

This is an excellent post with great information. Thanks for sharing it.

Have a super fantastic week!
Joe Jackson, Realtor-KWCP

Jul 06, 2022 05:57 AM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Hi,

Enjoyed your blog, and I added you as a friend. I would love the follow back. Thanks Bill

Jul 06, 2022 06:36 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Derik - not everyone is properly prepared to be a property owner and that certainly applies to investing.  All sorts of mishaps and mistakes can take place.  The decision to purchase in the first place should not be considered lightly (nor to sell/exchange).  You have provided plenty of food for thought.  Thanks to Bill Salvatore - East Valley for his reblog of this post.  

Jul 06, 2022 06:58 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Derik, I don't think being a landlord is for everyone, but those who can, do very well handling all the obstacles.

Jul 06, 2022 07:31 AM