Your parents have finally reached the age that requires special care and their house is sitting empty. Tempting to rent it out for some additional income, right?
Before you decide to rent, read this post about the risks involved with renting. You might want to think again and consider other options.
1. Bad Tenants
The bane of all landlords, bad tenants can be a pain in the neck and a pain in the pocketbook. Unpaid rent, unpaid utilities, property neglect or destruction add up to a loss in revenue and an increase in out-of-pocket cash. Bad actors engaging in disruptive or criminal behavior anger neighbors and ruin the value of the neighborhood. You’re risking not only missing out on that extra income you were counting on, but the overall value of the home as well.
2. Destroyed House
You can’t believe what some tenants do to a rental. With no regard for the property and no respect to the owners, they can trash the place beyond belief. The costs of renovation and repair can be exorbitant. Do you have a lot of extra cash lying around that you can shell out to put the property back in order? Is that a risk you are prepared to take?
3. Overhead Costs
Don’t overlook the fact that acting as a landlord comes with costs. You still have property taxes to pay. Ongoing costs of maintenance and repairs add up. Do you have adequate cash flow on hand to cover these ongoing costs?
Every day a house is vacant means another day the property is generating zero income. It also means that you will bear the expense of getting the place ready for new tenants and advertising for new tenants, not to mention the time invested to show the property and screen prospective renters.
Evictions, every landlord’s nightmare, are a real pain. With tenant rights the way they are today, it is a wonder anyone ever does get evicted. Have you looked into some of the conditions pertaining to eviction laws in areas like Portland, Oregon? Besides having to deal with all the legal red tape and the frustrations of feeling like you can’t control the situation, you have to bear the risk that angry tenants will trash the place as a way to get even.
The above risks facing all landlords are the reasons we say SELL, DON’T RENT. Unless you are very experienced in the landlord business and have the cash flow needed to cover unforeseen expenses, you run the added risk of getting financially in over your head.
A simple way to generate additional income from the property is to sell the house. The cash you make from a home sale can be invested in safe, secure assets that don’t involve all the risks of renting a home.
You can sell the parent’s home fast with no money out of pocket through a house cash sale. You can sell the house in “as is” condition, liquidate practically overnight and not have to confront the risks associated with being a landlord.
Would you rather cash out the equity or risk being a landlord?
Do you have a piece of property (house, lot, or land) you’d like to sell fast? Fill out our Sell Fast Form and get a cash offer within one hour of us viewing the property.