What Makes a Property a “Bad Rental Property”?
Deciding what to do about the non-stop headaches when dealing with a bad rental property can take time and effort. If you are ready to cut your losses and sell the property, you have probably considered listing with a real estate agent. Besides the high agent fees and prep costs, the trouble with the listing is the open-ended length of time your property could be on the market and the unending holding costs you will be forking over monthly for utilities and upkeep. Or perhaps you have considered selling on your own to save the commissions for yourself. Unfortunately, FSBO listings are not typically successful; only 11 percent sell, usually for around 25 percent less than agent listings.
So what is an investor to do? If you are more than ready for the hassles to end and move on from a property that is wearing you down, read on as we explore four things you can do with a bad rental property in Portland.
Property is in a Bad Location
No matter how attractive your property is, it will be difficult to exit the investment if it is in a bad location. Whether you purchased without performing your due diligence or the neighborhood has undergone a significant downfall, your rental location can doom the potential for your returns. Good tenants seek out safe areas with low crime rates, good schools and nearby amenities like parks, access to transportation and walking proximity to business and shopping districts. Why not consider a direct sale to a professional buyer like those at London Home Buyers, who will save you time, effort and money with guaranteed closings in just a matter of days at no cost? With a direct sale to your professional buyer at London Home Buyers, you can begin enjoying life with your troubles behind you.
Property Repairs Are Too Expensive
Another problem may be with the property itself. While a deal may look great on paper when you run the numbers, many investors realize too late that the property requires a great deal of rehabilitation to turn a profit. If you happen to find yourself deep in a money pit of constant repairs, a direct sale to a professional buyer like those at London Home Buyers may be your solution. At London Home Buyers, our professional buyers will buy your bad rental property as-is for cash, and you won’t pay any commissions. At London Home Buyers, our policy is total transparency. Hence, we provide you with the details of your costs and profits from a conventional listing vs. our direct offer for your property, which you will agree is fair. We do this at London Home Buyers because we want you to feel good about working with us long after the closing. The local professional buyers and their team at London Home Buyers are your neighbors who live and work here in Portland and care about our community and helping people like you solve problems.
Burdensome Tenant/Landlord Laws
Over the past few years, a number of major cities (Portland included) have made significant changes to tenant-landlord laws that place a heavier burden on the landlord to keep a stricter inventory of items within the rental unit, obsessively track damages by the renter to the unit, or limit a landlord’s say in who is able to rent the unit in the first place. While these laws are well-intended and certainly in the interest of ensuring fair housing access and reasonable security deposits for renters, these additional laws a rental owner must follow may place a burden on an owner unfamiliar with the new laws and susceptible to unexpected fines without a full understanding of the changes applied. For owners who have had a longtime renter in their unit giving notice that they will not renew their lease, the new regulations can be daunting to adjust to when looking for a new tenant. Hiring property management professionals (like us!) to ensure an airtight application and screening process would ensure these issues are taken care of, but some owners may no longer see the unit they own as worth the hassle.
How London Home Buyers Can Buy Your Bad Rental Property
The easiest thing you can do with a bad rental property in Portland is to sell directly to professional buyers at London Home Buyers. At London Home Buyers, our professional buyers have optimized efficiency and lowered costs with a full-service in-house team of industry specialists to handle everything, saving you even more money and time. Let the professionals at London Home Buyers help you locate your next investment so that you can take advantage of the tax benefits of a 1031 exchange. Ask your professional buyer from London Home Buyers about our current inventory of the best investment properties available in Portland. In addition, the team at London Home Buyers includes property management pros who can help you with everything from cleanouts to tenant placement or on-site management and protect the remainder of your holdings from becoming bad rental properties in Portland. Call London Home Buyers at 555-555-5555.
What To Do With a Bad Rental Property
Being stuck with a bad rental property doesn’t mean you can’t salvage your investment–rather than play the waiting game to see if the area will improve, or if recent tenant/landlords laws will change, or have to worry about yet another repair to make on the property, it might be time to consider selling! Rather than waiting for it to be listed on the market and arrange for showings (don’t forget, tenants need to be notified at least 24 hours ahead of time when showing the property, and months in advance if a property is eventually sold), London Home Buyers will give you an honest assessment of the property value and can inform you of how quickly it can be sold. If you have the time and patience to find a property management company to screen tenants and come up with an airtight lease agreement at renewal, this can go a long way to easing your worries, but it won’t address the issues of looming repairs and high property taxes. Taking all of this into consideration, reach out to London Home Buyers to see if a cash offer is the best solution for your bad rental property.