Selling rental house

We Buy Houses With Tenants in Omaha

July 13, 2017 • Owen

Are you sick of your nightmare tenants? No body blames you. That’s why we buy houses with tenants in them – to help you out of being a landlord.

Landlording is a rough business. Between keeping up with property maintenance and collecting monthly rent, a lot of time and resources are used to ensure a smooth renting process.

we buy houses with tenants regardless of condition
But paying costly property management firms or dealing with long term nightmare tenants takes its toll on even the most veteran landlords. If the stress forces you to exit the landlord business or you juggle too many investment properties already, you may want to sell. Instead of waiting months (or years) for the tenant’s lease to expire, consider selling to a professional investor willing to take on even the most strenuous tenants. Don’t worry; we buy houses with tenants.

“Can I sell my rental property with tenants in it?”

As the property owner, you may believe it’s simple to sell a home without tenant interference. But sometimes selling a rental property with tenants on a lease can be a complicated mess. Although you own the property, the tenants have rights too.

There are certain state restrictions that create unnecessary roadblocks for the homeowner. If a landlord wants to sell before the lease is up, they can find themselves facing severe legal penalties with enormous monetary consequences.

Selling a tenant-occupied property is different than selling a family home or inherited property. As long as the tenant continues to pay rent, they have a right to live on the premises. While some tenants are worthwhile and make timely payments, others can be problematic, forcing a landlord to sell the property outright. When a landlord decides to sell, dream tenants can become nightmares for fear of displacement. It’s crucial to know your options as a landlord and where a renter’s rights end.

Tenants Still On Lease

we buy houses with tenants still living there

When selling a rental property with tenants on lease, it’s important to know the state laws. Some states require a landlord to give a 30 or 60 day’s notice, while others have laxer guidelines on the notice for a tenant to vacate. To uphold the laws of Nebraska, landlords must send their tenant a letter that clearly states when their tenancy ends. This is especially important in cases of an unamicable landlord-tenant relationship.

Selling the property while the tenant is on a fixed-term lease requires a bit more finesse. Unless the lease contains a special early termination clause, tenants in good standing are allowed to live on the property until the lease ends, even if you want to sell the home. For tenants that have violated any lease terms or missed any monthly rent payments, landlords have the option to terminate the lease altogether, but risk lawsuits from disgruntled former tenants.

If a landlord wants to sell before lease is up, trying to list the property becomes another issue. Unless the lease agreement firmly states it, the homeowner may not be allowed to show the property to potential buyers. This is detrimental to finalizing a sale with most buyers and can hinder the price when negotiating with others. You can start showing the home if the tenant allows and is given proper notice (typically 24 hours). Otherwise, you’ll have to wait for the lease to end. When dealing with problem tenants, this scenario can be unsettling.

Selling to the Tenants

we buy houses with tenants or sell to tenants

“Can I sell my rental property with tenants in it to the tenants themselves?”

The answer is yes, but only if the tenant wants to buy the home outright. While this would be a great solution to rid yourself of the property, selling to the tenant requires maximum effort. Not only is the landlord tasked with drawing up the paperwork and presenting it to the tenant, they also often assist the tenant in finding adequate funds to purchase the home.

Some tenants cannot afford the property and must consider obtaining a mortgage or other financing options. Securing a proper loan can take months and landlords looking to sell quickly won’t be willing to wait for the possible loan rejection. Selling directly to the tenants requires homeowners to become both landlord and seller, a confusing combination for first-time investment sellers.

Some tenants may want to purchase the property and have the necessary funds. Instead of making the deal a simpler process, they decide to capitalize on the landlord’s desperation to sell. They may want unnecessary or extreme incentives, like a lower rent payment until the sale is finalized or all closing costs. For a landlord that wants to sell before lease is up, this is an unfortunate probability when dealing with tenants.

That’s why you’ll probably be finding yourself looking for other buyers. You could put the house on the market, or sell it to cash buyers like it. That’s why we buy houses with tenants in them – we know how difficult it is for you to find a ready and willing buyer.

Problem Tenants

we buy houses with tenants even if they're problems

Problem tenants can easily hinder a sale for many landlords. They may pay their rent on time, but they completely disrespect your property. They leave the home a mess, refuse to let you show the home, and can even change the locks on you. If you’re seriously considering selling your tenant-occupied property, knowing how to manage these major annoyances is vital.

While some tenants are terrific, others make you regret ever becoming a landlord. If your tenant is unwilling to let you show the property, you may enter anyways if you’re allowed access on the lease. But this can lead to unwanted hostilities, and angry tenants are more likely to drive away potential buyers.

If a tenant changes the locks, landlords risk angering the tenant further by calling the police and forcing property access. Another possible solution includes hiring a locksmith to change the locks at the tenant’s expense. Though none of these are ideal situations, when deciding to sell a property with tenants still on lease, these are likely scenarios that must be dealt with before selling.

There is another solution to dealing with problem tenants when selling the property. Landlords can pay their renters to vacate. Generally, landlords wishing to go this route must offer to pay the rest of the tenant’s rent plus other costly concessions to convince a renter to break lease.

Sometimes this means paying moving costs, giving up the deposit, and throwing in extra cash for the security deposit on a new place. While this option allows the homeowner to list their property without unruly tenants to hinder the sale, it forces them to spend money and time convincing their renters to leave. It’s not the best selling solution.

That’s why selling to cash buyers is a better solution. The reason why we buy houses with tenants is to provide a better alternative for landlords like yourself.

Why We Buy Houses with Tenants

we buy houses with tenants

The best selling solution for landlords with tenant-occupied property is selling to an experienced investor. Investors happily seek out properties with tenants and expedite closings with fair market cash offers. That’s why we buy houses with tenants!

You don’t have to worry about showing your home without making repairs or problem tenants driving away the investor; they honor the tenant’s current lease and care for the home to resell later. If you want to sell your house immediately, but your property is occupied by a long term lease, contacting a local house buying investor is your best option.

Don’t stress over selling a rental property; we buy houses with tenants no matter what condition it’s in! We’re always ready to answer any questions you have. Just give us a call at 402-578-4003!

Sell a Damaged Rental House to Cash Buyers

June 22, 2017 • Owen

Have tenants ruined your house? Fed up with being a landlord, but don’t know how to sell a damaged rental house? We know how frustrating and stressful that can be.

Owning a rental property is a great way to make extra money. For properties in ideal locations and in excellent condition, investors can earn enough for home upkeep and management with a little extra leftover to pocket afterwards.

But with any potential for profit, there’s potential for a financial pitfall. Many landlords and rental property managers share a single horrifying thought: extensive damage to their property that keeps them from renting it to future tenants. Whether it’s due to external factors such as severe storms or caused by problematic tenants with a lack of respect for the property, unrepairable damage is a probability most landlords face. These issues can be time consuming and costly to fix and leave a landlord wanting to know how to sell a damaged rental.

Identifying the Damage

sell a damaged rental houses to cash buyers

There’s no good time to discover property damage as a landlord. Some homeowners will notice their property needing major repairs only after a move-out inspection when the previous tenant’s lease is up. Other landlords discover unrepairable damage while in-between tenants.

Finding structural or cosmetic flaws due to a tenant’s mistreatment can cause serious anxiety no matter when you stumble upon it. If the signed lease agreement allows it, landlords can withhold security deposits to pay for the fixes. Often times, this paltry amount is too small to repair the worst property issues. If the tenant in fault has already moved before the landlord discovers the damage, there may be little recourse for landlords seeking reparations.

On the other hand, landlords may find their property needing serious repairs after facing external circumstances. Natural disasters, burglars, unwanted pests, and deterioration from a property’s vacancy can all factor into the home’s need for expensive repairs. Unless the homeowner has insurance covering these potential threats, they’re unlikely to receive payment for the fixing up of the property.

It will require paying for the repairs out of pocket. For landlords trying to maximize profit or unable to afford the repair, this can mean selling the damaged rental just to stay financially afloat.

Severe damage to a home can greatly devalue the homeowner’s investment and push them to sell. The property value after damage is dependent on the extent of what needs to be repaired. While minor water damage or cosmetic blights can be fixed with relative ease, structural flaws can greatly decrease the home’s value.

To know if the property damage is too great to still earn a profit in the future, landlords must calculate costs to repair and subtract that from what they gain from monthly rent. Some landlords have enough money in savings to spend on emergency cases, while others make barely enough rental profit to pay their own monthly mortgage. For the latter, discovering damage early on and figuring out the property value after damage is essential in making the decision to sell.

Handling the Damages

sell a damaged rental houses without needing to make repairs

After being forced to face extensive damages, many property owners don’t know all their options. Insurance companies could deny claims and tenants can leave landlords fitting the bill. Sometimes a property owner must handle expensive repairs themselves.

When this occurs, the homeowner’s first option is to pay the bills out of pocket. This is where having an emergency savings fund comes in handy. Landlords will most likely need a significant sum to pay contractors, repairmen, and appraisers to reassess the property value after damage. It won’t be cheap, but it’s not impossible for those that have planned beforehand for sudden home repairs. However, if a homeowner financially depends on the rental for income and is not generating any due to the property damage, they might be forced to sell a damaged rental to avoid debt.

Those who choose to handle the repairs themselves must be wary. While doing home repairs yourself can save money, it also comes with detrimental risks. Making major repairs requires expertise of local building codes and possible HOA guidelines. If a fix doesn’t meet the former, it can cause the rental to be shut down completely. Landlords wishing to do their own repairs should also consider the risk to their personal health. For home repair novices, a personal injury is likely and can cause even more financial woes.

Sell a Damaged Rental House for Cash

sell a damaged rental houses to get rid of stress

The best option for landlords facing costly home repairs is to simply sell a damage rental and move on. Though losing a source of monthly income can seem fiscally irresponsible, it’s in the homeowner’s best interest to sell when the burden of owning outweighs the potential profitability. While many prospective buyers are looking for homes in pristine condition that are move-in ready, others are attracted to fixer uppers for their potential. For property owners unwilling or unable to pay for repairing an excessively damaged home, this option requires no money and very little effort.

Typically, trying to sell a damaged rental house is a market no-no. Houses with damages are less likely to sell, and if they do you won’t be getting your money’s worth.. They are more likely to draw the attention of less serious buyers willing to submit lowball offers to procure the property cheap.

However, if you need to sell a damaged rental house with water damage or needing any other major repairs will also appeal to other investors and we buy houses companies. These professional home buyers are more interested in the home’s potential renovation than the risk involved in restoring it. They will offer fair cash offers for homes in any condition.

Selling to a we buy houses company comes with other benefits to landlords desperate to sell a damaged rental. Conducting an as-is sale allows the landlord to be rid of the property before letting it sit vacant for months while repairs are made.

Homeowners won’t need to pay those monthly mortgage payments or the home’s general upkeep if the property is immediately sold to an interested party. Selling to a cash buyer also allows the homeowner to reinvest money from the property’s sale after securing a substantial cash offer. This, too, is a better option than waiting months to fill a damaged property with new tenants.

If your rental is too damaged to repair, contacting a local cash buyer is your best option. They can ensure a quick closing at your convenience, and they buy properties in an condition.

Get Rid of Your Damaged Rental

sell a damaged rental house to an investor for cash

We know how crazy tenants can be! We also know how impossible it can be to rent, or sell a house that tenants have trashed. That’s why, at Red Ladder Property Solutions, we focus on how to help you out of your sticky situation.

We’ll buy your house for cash as-is. No need for you to repair anything. We’ll take your house damage and all! All you need to do to sell a damaged rental house for cash ASAP is contact us! Don’t be afraid to call, we’re always happy and ready to answer any questions you have at: 402-578-4003.