Logo

Speak to me directly!

303-997-2045

sell your house fast

303-997-2045

Sell Your Rental Property and 4 Reasons Why

Posted on: September 20th, 2016 by , No Comments

sell your rental property

To own and then sell your rental property in Denver, Colorado can feel like you are taking on more than you can handle. There are a number of things that can go wrong when owning a rental property though..

To sell your rental property is a good idea because often times the owner can run out of money to maintain a rental property. Or they don’t have the time or patience to deal with the tenants. When buying a rental property you have to be prepared to take on a full time job, or hire a property manager to take care of the work. Also you have to be prepared with a budget and an idea of your yearly expenses.

On this blog you will find 4 common reasons why landlords want to sell their rental properties.  If you find yourself fed up with any of these situations it may be time to cut your losses and go to sell your rental property.

1. Renting Out Of State

Landlords tend to rent a property when they have to move abruptly out of state. So they think the easiest way to hold their home while making some income is to rent the property. Renting from a distance can be tricky business. You have to find people you can rely on to manage the property. When the tenant has an issue or if they are not paying their rent it is hard to take care of the issues or evict the delinquent renters from a distance.

If your management company becomes too busy to handle these situations the burden falls on you. May be a good reason to sell your rental property.

2. Bad Tenants

Bad tenants come in all different forms. This is definitely one of the biggest motivations to sell your rental property. It is up to you to make the hard decision to evict the tenants when there are:

  • Neighborhood complaints
  • Illegal drug activity
  • Late payments
  • Severe Property damage

If you have one neighbor complaining you cant ignore this issue because it can turn into more complaints. Illegal drug dens can cause a lot of damage to the property; a good way to detect this activity is to watch for high electricity bills. Another reason to sell your rental property.

3. Property Taxes Eating up Your Profits

Often times when a landlord is new to the property rental business they forget when it comes February that they have to pay property taxes.  The reality is that you have to budget in the taxes and unforeseen repairs as expenses before you account for the profit you earn every month. Typically when your first few properties are not going to earn you money in the first few years, unless you got a killer deal. But in Denver those deals are hard to come by and if you don’t have the patience to hold onto the property for a long period of time, then you more than likely wont see very much profit. That’s just how it works.

So be careful when you are first crunching the numbers on how much the rental property is going to cost you. Sell your rental property to avoid this.

4. The Rental Investment Has Too Much Risk

When you have a tenant move out of your home it is your responsibility is to fill the property with another tenant as soon as possible. Normally you have a few months to advertise for a new tenant, but you can have tenants that move at a moments notice. When your rental property sits vacant, that can cause many issues. You are the one left to make payments on the mortgage. You also have to keep an eye on the property to make sure there is no one breaking in to the home or vandalizing it. Also when it is wintertime in Colorado there is the possible issue of a pipe breaking, which can cause a mountain of damage if it goes unnoticed.

When it is a challenge to find another renter, this would be another good opportunity to sell the home. The investor can then take over the payments so you don’t have to. Acting fast in this kind of situation is crucial because if you fall behind on payments you could be on the verge of bankruptcy or foreclosure.   Sell your rental property to avoid expenses and risk!

5. Sell Your Rental Property to an Investor

Local Investment Home Buyers can easily be found by searching the web. Contact Adam Buys Houses with any questions you may have about your rental property or if you have one of these issues. Selling your rental property in any of these situations is often the easiest and safest option. We write these articles to make sure that people know their options when they are in over their head with rental properties. Call us now so we can help at 303-997-2045 or fill out the form on our website to get started.

Related Posts You May Be Interested In:

How to Sell a Denver Property with a Tenant

Why Selling in Denver May Be Better Than Landlording

3 Options For Selling A House in Colorado: Pros and Cons

Sell Your Home As Is – The Quick and Easy Guide

 

Comments are closed.