Pitfalls of Renting and How to Sell Fast

Renting a home can be prolific and profitable in certain situations, but there is the possibility that doing so can be more costly and time consuming than one might think. The life of landlords isn’t always glamorous, so we’ll build up a case here concerning why selling now might be a better option than operating a rental property.

Not All Tenants Are Good Ones

The truth is, that the condition of your home is predominantly at the mercy of those who you allow to live in it. Essentially, landlords can find themselves facing “nightmare” tenants. Not only can their damaging actions or neglect cost you money, but dealing with them and complaining neighbors can also be emotionally draining.

Violators of the lease’s terms or problematic tenants put you in an eviction scenario. This can cost anywhere from hundreds to thousands of dollars, and the timeframe between notices and court dates can result in a massive loss of rental revenue.

Tenants Can Fall Behind on Rent Payments

Even prior to the global health crisis, tenants had faced hard times that resulted in untimely rent payments. According to a survey in the fall of 2022, approximately 15% of tenants in the US were behind on rent. As a landlord, this puts you at risk of going into negative cash flow. This is just one reason why vetting potential tenants’ previous rental history and confirming their income and background is so essential.

Landlords Must Be Prepared for Unexpected Costs

In addition to late rental payments and damage due to tenant neglect, landlords have to contend with basic maintenance and operating costs. As an owner, there are likely to be certain legal standards to meet concerning habitability of the property that you must meet, so be prepared to have a fund to support emergency and routine repairs.

Managing Rental Properties Takes Time and Money

In addition to dealing with tenants, to make a rental property profitable takes a good bit of work. In some cases, being a landlord can seem like a full-time job, depending on how many homes you’re renting.

Consider the time it takes to market the property, do background checks on potential renters, and handle ongoing and unexpected maintenance. An additional expense can involve hiring a property management company to oversee these issues, but that can eat heavily into your bottom-line profits.

Rental Homes Can Be a Risk As a Large Concentration of Assets

Investing in Colorado Springs property can diversify your financial portfolio. However, owners who rent the home could find themselves facing a volatile market compared to other consistently high-performing assets.

So unless you’re comfortable having a large sum of money held in a liquid asset, being a landlord might not be right for you. Keep in mind that unexpected changes in your financial situation can result in the need to sell your home fast, which can result in additional fees and capital gains taxes.

Is Selling for a Profit an Option?

Colorado Springs real estate is hot due to being so close to many attractions and sights that appeal to outdoor enthusiasts and adventure seekers. Rather than renting, you can take advantage of the seller’s market and get a great price for your property quickly.

The key to success here is weighing out your options concerning the long-term and short-term benefits of renting versus selling. As an owner, you’ll need to choose whether to sell your property for a potentially large profit or continue with plans to rent.

Turn to the numbers, and calculate how long you would need to rent the home to regenerate the profit you can see now should you sell your Colorado Springs home. A real estate agent and other online sources can help you make this determination. Yet if selling fast and moving on to new prospective investments sounds good, we have a solution.

Skip the Woes of Renting—Sell Your Colorado Springs House for Cash Fast!

Here at We Buy Houses Colorado Springs, we can alleviate any potential renter issues by buying your house as is for cash. No need to make repairs or deal with screening tenants. We can offer you a buying price quickly and streamline the transaction process. Contact us today to get a quote of what your property is worth, and get your cash in the bank quickly!