We’ve all been there: a tenant moves out and leaves the property completely trashed. It is a landlord’s nightmare and a situation that 30% of landlords all over the nation have had to deal with. Selling a damaged home can actually get quite complicated and result in a lot of frustration for the average landlord. For most, the solutions are neither obvious nor easy to implement. Frequently, landlords rely on rent as their primary source of income. The absolute necessity of selling a home in a timely manner will, without a doubt, push many home sellers over the edge and into a sales “situation.” There is a very real emotional component to such situations, and they should not be overlooked. Landlords take pride in their real estate investments. Seeing a home that was once well-kept in disrepair will elicit an emotional response from anyone. The race to quickly sell the home can, likewise, take such a toll on a person that they will feel like they are constantly in a hurry. Emotional states like this can cloud judgment. For this reason, it is all the more important to take a close look at the potential ways to sell a home. Selling a home “as is” to cash investors and hiring an all-cash home buying company are some of the most viable options available to landlords. Many landlords will turn out to be just like you! When the time comes to sell their home, they would rather sell directly to a buyer.
Options for Selling a Trashed House
Especially for those dealing with a trashed house, the thought of selling a property “as-is” to cash investors can seem like a dream come true. Instead of going through the long, drawn-out process that often comes with selling a house via a traditional method, many cash investors are ready to close quickly. This approach takes the requirement of stopping everything to handle extensive—and often expensive—repairs out of the equation. Plus, just imagine not having to oversee a renovation; it can be dreamy in and of itself! Alternatively, some people might think of fixing it up before selling to get the most money. True, it is an option, but remember [sellers] often have to pay for the time and money it may take to fix it up. Trying to decide whether it’s worth the headache that might come along with going the route of having to make the extra effort of rehabbing a property to get more “cash” from the buyer is a tricky little grey area. Until [realtors] see how trashed a property is, [realtors] simply can’t provide the best advice to go either way on this matter.
Legal Considerations
Landlords can face significant legal implications when their tenants cause damage to property. This primarily concerns security deposits and evictions. Most landlords collect a security deposit to hold in case there are damages that need repairs beyond expected upkeep. Using the security deposit to pay to fix these damages creates a lot of legal problems for landlords. The landlord must still provide an itemized list of damages and costs, which means the tenants have to be given an opportunity to dispute this list. If the landlord does not do this properly, the landlord may lose the right to keep any of the security deposit. In other cases, the eviction may be the only reasonable process. Landlords should document damages in case the situation leads to an eviction. The eviction process varies depending on jurisdiction. Most states have laws that allow eviction if a tenant has caused substantial damage to a rental property. The landlord usually has to give some notice that the eviction is due to the damage, and the tenant usually has a certain amount of time to vacate the rental property. If the tenant does not leave voluntarily, the landlord may initiate unlawful detainer (eviction) action in court. So, what about former tenants? Say a landlord is in a dispute with a former tenant about damage that the tenant caused to the property. The best course of action is to communicate the problem and a way to fix it clearly. The landlord should have evidence of the damage (preferably before and after pictures), repair estimates, and a documented paper trail of these interactions. The landlord might also want to offer reasonable remedies. For instance, the landlord could offer a way for the former tenant to pay for the repairs over time. It might be better to seek other legal remedies (such as in small claims court) to come to a resolution while understanding all of the landlord’s responsibilities.
Preparing for Sale
Preparing a garbage home for sale – even in an as-is condition – can boost buyer interest and offers that you receive, exponentially. Clear out all the junk. Many cash buyers want an empty house, stripped of all personal items, extra furniture, and junk. The fewer items in the house, the bigger it will look, and the easier it is for the potential buyers to picture the house furnished with their belongings. Professional house cleaners or a maid service would be a great use of marketing resources if you have the budget for it. Cleaning the home allows the buyers to have a good first showing experience. You can impress them by offering a clean home that reflects nicely – allowing the buyers to move in and begin seeing the improvements for an easy and clean flip! Many realtor agents claim that staged properties show the best and get more realistic offers. The prospects who come into the flip get to visualize its full potential. Staging should cover the main areas of your property like living rooms, kitchens, and bathrooms with just one piece of furniture. If there are rooms with dark light, consider the new furniture and some decor or paint. Peace of mind at the closing table concerning the house’s problems can easily be dealt with by going through the house normally with an inspection disclosure of the property. Highlight the positives, and ease the negatives with relaxed selling situations; remember it’s a people’s business. Anything else (like plumbing, electricity, roofing) could be listed as such. Let the buyer know condition X of the house so when the new owner takes over the property, you will have already protected yourself from any further liability.
Understanding Tenant Damage
Tenant damage is what it sounds like: any damage to a rental property that can be blamed on the tenant. The damage can be as mundane as a stain on a rug or as catastrophic as a tenant-caused house fire. Depending on the type of property you’re dealing with, a little bit of damage is to be expected; any place that gets lived in is going to show some wear and tear over time. Some types of damage practically come standard with some renters: young renters may be more prone to partying and thus, causing their homes (and your property) to endure more damage. Other types of buildings, especially very old ones, are much more susceptible to damage from things like the weather (in the form of a leaky roof), an outdated electrical or plumbing system, or a wilting foundation. Sometimes, a specific act is responsible for causing significant property damage. Say a disgruntled or drunk tenant put their fist through a wall or window. Other times, the property damage may be the result of a lack of action or neglect. A tenant may casually ignore the signs of an infestation or simply neglect to inform you of it: voilà, you have yourself an ant, roach, or rat infestation. Other times, the tenant might all but welcome the infestation (think of them as guests, the tenant might be thinking). The health hazards alone are serious enough to consider this an emergency situation, but the property damage that a short- or even medium-term infestation can cause can be significant. At the more … intense … end of this level, you might have this kind of property damage (or rather, “these kinds of property damage”) that involve a tenant’s willful destruction of a rental property. That’s right: they came, they saw what your property was, and they wanted to destroy it, all of it, inside (at least) and possibly outside, and — probably floor by floor and room by room — they did. Pop a wall here, … rip a (probably rusty) piece of plumbing there … Oops, there goes the electricity for that floor. All in a few hours’, at most, work: perhaps more “fun”? than work, but they sure did go through the motions …
Assessing the Damage
If you’re a landlord dealing with renters damage in Washington, you absolutely must use a comprehensive checklist to evaluate potential damage. This checklist should include items such as: Assess the structural integrity. Look for water damage. Check all the installed appliances and fixtures. Use a list of common areas prone to damage (like the one above) to check out and evaluate every part of your property. This will give you a rough idea of how much damage there really is, so you can start thinking about repairs. Absolutely document any damage you see. Take photos and write down what is damaged and how bad you think the damage might be. You want to use this for insurance purposes, and potentially to go to court if you have a nasty dispute over damage and security deposit deductions! Take the results of your inspection and basically, decide on the spot whether or not you’re willing to pay for repairs or if you’d rather attempt to sell the home instead. Assessing, evaluating, deciding — it’s as easy as 1, 2, 3!
If you have a trashed house that you want to sell, selling to cash home buyers could be your saving grace. Here’s why: The transaction takes days, not months. No need to fix anything; they buy houses as-is. Landlords, sell and get rid of your trashed houses! Tired landlords, those were words specifically for you. You can sell your trashed house for cash and it’ll be the biggest load lifted off of your shoulders! You might have the world’s biggest problem tenant or the world’s biggest problem house… it doesn’t matter to a cash investor. You can finally have freedom from a trashed house. Don’t you think cash sounds good for a trashed house?