The eviction moratorium has left many investors collecting little to no rent due to the guidelines set down by the CDC. While this is a good thing for tenants, it is potentially financially devastating for landlords. Mortgages are still due so what do you do when your tenants aren’t paying up? Regrettably, as the order drags on, many investment property owners can no longer afford to take the loss and might consider selling their properties. If this is you, then you have likely thought about selling in the traditional manner of listing a property with an agent. But selling a rented home (especially one where the tenant is not paying rent) is challenging and many agents may not be able to successfully sell your home rented. There are other options. When already facing not collecting rent, considering all the steps to prep the property to make it market-ready can feel overwhelming financially. We are local homebuyers in Georgia and we buy houses in Roswell Georgia. We wanted to give you some other options to explore when you are considering selling your Roswell investment property.
How To Sell Your Roswell Area Investment Property When Your Tenants Aren’t Paying Up?
Option 1…The Real Estate Agent
Attracting the average home buyer or investor to a listing in the real estate market is extremely difficult, if not nearly impossible if you are trying to sell your Roswell investment property when your tenants aren’t paying. The fact that your tenants protected under the order is not something that will go unnoticed, so be prepared to be completely forthright regarding your tenant’s current status, regarding the order. Most agents use the MLS and most home buyers are owner-occupants so they won’t be interested in your house if they can’t move in right away. Most investors will be wary of your rental home if they can’t readily generate income and will likely inherit the problems of getting a non-performing tenant out. Further, how will anyone see the house to inspect it, schedule showings, etc? Tenants can be difficult and with the worry about the virus, getting access for showings, which means arrangements with tenants to show your investment property and inspections will be a challenge. On top of that, you will need to cover the expenses for photography, marketing as well as repairs and updating the property on both the interior and exterior. Added to this are commissions and fees associated with real estate agents.
Option 2…Going FSBO
Another option to list your Roswell investment property when your tenants aren’t paying is for sale by owner or FSBO. If you choose that route, you will likely not have access to the MLS where agents and their buyers look. Again, you will have to do all the work your agent would have done to the market, schedule showings, and coordinate inspections…and most buyers will seek possession or if they are investors, will want to understand when they will be able to get the monthly income from the investment. You will want to be fully prepared to share any arrangements you have already made with your tenants for partial payments, under the guidelines of the CDC order. By handling showings yourself, you will still have to worry about coordinating access but at least you can control your tenants responding to questions that they really should not answer from a buyer’s agent or their clients. Being there can also eliminate your dealing with them asking you questions during showings in front of your tenants as well. Finally, many tenants that aren’t paying rent are at home full-time because they are usually not working at all in many cases. Tenants in the house all the time often lead to the house showing poorly if you do try to arrange showings…all this can make selling your home with non-paying tenants a real problem.
Option 3…Selling to a Professional Home Buyer
This might be a real viable option…quick, painless, and easy solution. Direct buyers like Resideum typically close much faster than traditional transactions and purchase homes just as they are. This can mean thousands in savings to you with no updates required and no more repair bills to worry about! This also includes buying the property with full awareness of your tenant’s current standing under the order. When you consider the time, costs, and discounts to price trying to sell a home with non-paying tenants can create, maybe considering selling your Roswell investment property to a direct buyer is a good option. So how does this work? Selling to a professional home buyer is extremely straight forward. They will lay out every step of the process and usually have shortened, very clear contracts that are simple as-is purchase agreements. As you might expect, direct home buyer offers are usually below market, but considering the time and expense of the other options, it might still be the best financial option. Also, a direct home buyer, willing to take the house with your tenants is taking on a tremendous risk by purchasing your house as-is. It may be more damaged than you realize and getting your tenants out could take months! If you sell direct, you can also lessen your exposure legal risks.
Sell My House In Roswell GA
If you want to explore selling to a direct buyer and perhaps sell your Roswell house fast to Resideum, LLC when your tenants are not paying, give us a call or email us today. We buy houses in Atlanta and we offer cash for houses in Roswell in any situation. You can expect a quick, simple, stress-free transaction from Resideum, LLC. We are available to discuss buying your investment property and we can make you a personalized, no-obligation offer. We will make the process simple so you can quickly sell your house in GA and move on. Call (678) 710-6130 today to learn more!
Greg Kurzner, is CEO of Resideum, Atlanta’s Professional Homebuyer company. Greg has been a force in Atlanta real estate for over 30 years. He has been involved in the sale of over 1 Billion in real estate transactions in his career and consistently ranks #1 in sales by units by Atlanta Realtor Association. In addition to Greg being a licensed real estate broker, he is also a licensed general contractor and a nationally-recognized expert in investment real estate.