Tired of Being a Landlord? Here are Your Options

The Problem With Being a Landlord

Owning investment property can cause serious anxiety. Whether it’s the constant home maintenance, hiring unreliable property management companies, or dealing with bad tenants, sometimes leasing out your rental home isn’t a sound or lucrative decision. So what do you do when you don’t want to be a landlord anymore? 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. While most landlords expect a payment of minor repairs, landscaping, and other, consistent home maintenance, unexpected expenses can damper your perceived profit margin. Replacing faulty appliances or repairing a leaky roof can create a negative cash flow that deters most landlords. When Business Insider’s Antonia Farzan decided to opt out of becoming a landlord, one of her major qualms originated from a lack of steady cash flow. The decision wasn’t easy, as Farzan belongs to a family of landlords; both her mother and grandmother managed several rental properties for additional income as she grew up. Yet, once Farzan was old enough to rent out her own property, she disavowed her family’s landlord business to seek other, more financially 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. If you’re 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 procuring property management companies can be a more costly, time-consuming, and wholly unsatisfying solution to a landlord’s conflicts. Property management companies are an added expense, further subtracting from a landlord’s potential profit. When inquiring about management groups, “expect to hear quotes ranging between 5% and 10% of what you collect in rent revenue”, estimates Ron Leshnower, a legal publisher for NOLO. 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 a landlord’s hands-off approach. Dealing with tenants is one of most burdensome duties of a landlord. When hiring property management groups, you trust them to deal with even the most high-maintenance renters. Yet, property management companies 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’s vacancy with the first tenant that applies, foregoing an extensive background check. This is a costly mistake. Bad tenants can default on lease agreements, steal appliances or furniture, or even do irreparable damage to your property! The damage dealt can transform your newly updated home into an undesirable fixer-upper. Particularly large property management companies have competing priorities when it comes to handling your rental home. While juggling multiple landlords and their properties, these management companies will mishandle or neglect your property due to the sheer volume of complaints that must be sifted through daily. If they’re not a 24-hours group, your tenants will be neglected during after hours and will, instead, call you with emergencies. “Be prepared for calls in the middle of the night,” warns Forbes’ Harlan Landes.

Selling with a Real Estate Agent

If property management companies are an expensive, unreliable option to maintaining your rental property, selling your home with tenants 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. Although state laws differ, most states give the tenant the right of first refusal (ROFR). The ROFR is a contractual right that 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 and spend 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 the 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. “Many real estate agents are reluctant to show buyers a tenant-occupied home because they expect resistance to allowing visitors into the property and assume the condition will be less than optimal,” warns Michele Lemer from Bankrate.com. 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, 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 when deciding what to do if you don’t want to be a landlord anymore. Utilizing the offers made by a house buying company often gives you the simplest and least stressful solution to many rental property problems. You don't have to 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 you sell to a house buying company! House buying companies have the expertise to handle even the stickiest lease agreements, allowing 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, repairs, additional fees, or leasing agreements. If you’re tired of being a landlord, selling to a house buying company is a dream come true.

Sell Your Rental Property

Instead, why not sell your home to Danny Buys Houses! When selling a rental property, Danny can give you a fast sale and cash. All you need to do is fill out the form to get the process moving. Danny is in the San Antonio area so he can make you a cash offer within 24 hours. In just a few days, you’ll be free of your house and able to move on with your life. You’ll have quick cash and can immediately begin prioritizing your financial goals.