Selling a tenanted property is not a straightforward proposition. First, the situation depends on the circumstances involved, covering a range of possibilities. Even in a hot sellers’ market, single-family (SF) or multifamily (MF) homes can get stuck in a rut if you ignore the real deal drivers. On the other hand, a systematic approach can remove unnecessary obstructions from the selling process and be very rewarding.
Pick your audience carefully.
When you own a rented property but your marketing targets buyers who want the home to live in (hereon referred to as “LIs”), you’re competitively at a disadvantage. Why? Because neighborhood real estate options offering immediate buyer occupation will have a massive leg up – no matter how appealing the features you offer. Of course, there may be a few cases where prospective buyers are ready to exercise some patience. However, it generally only works when the remaining lease tenure is in months (rather than years), and the rent revenue makes ROI sense. The most important thing to remember is that trouble-free leases are vital to get the deal over the line.
Another thing – you’ll probably find that most residential realtors are out of their depth when it comes to selling properties weighed down by leases (i.e., good ones and not-so-good). But, again, that’s because the buyers are primarily in the LI category. So, how simple is it to shift the emphasis away from own use to investors seeking tenanted SFs and MFs?
One recommended direction is to rely on home cash buyers for a better resolution.
- They’re already into remodels and leased properties, so they won’t penalize you by claiming rented real estate is a disadvantage.
- Moreover, home cash buyers can give you a mortgage-free, commission-free price without disrupting the tenants in occupation.
- Other hassles that align with a traditional realtor, like creating curb appeal, staging, decluttering, and repairs, fall by the wayside.
- Finally, the cherry on the icing is that you can close the deal within a week.
Problematic tenants – what to do about them.
Let’s put it this way – the home cash buyer uniquely comes to the fore when the tenants are problematic. For example, late payers and people who disrespect the need to look after the asset they reside in will meet their match when interacting with a professional home cash buyer. Therefore, any selling transaction with the latter can remove a big headache from your property portfolio without severely cutting into the offer price (the cost of addressing the problem).
Suppose your rented house isn’t resonating with the LI segment because the buyers see tenancy as disadvantageous or okay with it, but the tenants still represent a burden. In that case, home cash buyers are the ticket to a realistically better home seller experience.
Is there a responsive audience for rented homes selling through traditional realtors?
Yes, as long as you understand how to play the game: Realtors prioritize MLS listings where they can see the road ahead as smooth and their commissions essentially trouble-free. Aligning with that vision, let’s assume you have an SF or MF with an excellent tenant who pays on time at a competitive rate. In that case, you may have just what some realtors like to market. However, not far below the surface could be one or two rotten apples ready to spoil the barrel, like when an HOA governs your home’s location. It frequently signifies a can of worms nearby:
- And there’s undoubtedly an HOA with its rules and regulations in the mix if the real estate you’re selling is an MF.
- Or, in the case of numerous SF rentals, the property community is under HOA jurisdiction.
Why such a fuss about HOAs?
Because some HOAs make renting seamless and accessible (i.e., rent-friendly), others can render it a nightmare. Buyers and sellers must read the community protocols carefully. When these allow only one tenant annually or stipulate draconian parameters for qualifying tenants, leasing feasibility hangs by a thread. In some cases, the tenant in the home for sale may already be against the rules, looking like an above-board rental arrangement but indeed is not.
So, when selling your home, transparency is crucial.
Before transferring the title, direct cash buyers or buyers’ agents will go into all the strings attached. The more open the rental landscape, the easier it is to sell your house with traditional realtors and get bids that meet your expectations (especially in a seller’s market). Conversely, your best move is to give reputable home cash buyers a try when saddled with “iffy tenants,” long leases you can’t get out of, or problematic HOA conditions.
Other significant benefits when contracting cash buyer benefits in Birmingham Al (or anywhere).
We’ve already dealt with zero commissions, cash on the nail, and fast closings. Also, by cutting mortgage lenders out of the equation, the property not appraising well disappears. Moreover, home cash buyers like Home Buyers Birmingham fit into every rental configuration like a hand in glove. Their expert team assesses the house upfront, so repair surprises don’t whittle the original offer down (as is often the case with traditional deals). In addition, Home Buyers Birmingham knows how to minimize the numerous niggling issues like liens, mortgage arrears, and other “bullets” that can cripple deals – sometimes irreparably. Finally, when dealing with rentals or any offer threats mixed in a home sale, start the journey by speaking to companies like Home Buyers Birmingham. There’s nothing to lose, and it costs nothing to listen to their advice.
Home Buyers Birmingham
1821 11th Avenue South Suite #55331
Birmingham, Alabama 35205