You invest in a home to use as a rental property. Things are great because the equity on the home is picking up and you’re enjoying the passive income that tenants provide each month.
Another lease comes to an end, and you find another person to come and take the spot. What happens when you come to find that these new tenants aren’t quite as respectful as the last? They damaged property and left you with a trashed house that might have lost value in the process of their lease.
What can you do? Do you just take the financial hit? We’re going to explore what to do with trashed houses that are a little worse for the wear after tenants get through with them.
Let’s take a look.
How to Sell a Trashed House
The difficulty with these situations is that it might not have been in your lease that the tenant is responsible for any damage that they incur to the home. If you’re not sure what the tenant might be responsible for, you can comb back through the lease to double-check if there is a clause or two that mentions what happens in these instances.
If the tenant does enough damage, the equity on your home could have been squandered. You want to do the best you can to bring things back into repair, but you might also be so done with the situation that you’re wondering how to get the home off of your hands as soon as possible.
Before you get too worked up about the disaster, go through the home and catalog where the tenant damaged property. Things have a way of looking much worse than they are at first, especially when you were expecting to walk into a clean home.
Tenants that trash houses tend to do so in a way that’s repairable. The damage is often cosmetic, with things like holes in the wall, damaged fixtures, broken windows, or even some water damage here and there. Those issues, while costly, aren’t the end of the world when it comes to home value.
Get an Appraisal
Once you’ve assessed the situation and noted any damages, it’s wise to bring in an appraiser. This person can give you some substance from which to work with. Don’t let your sense of panic and despair get the best of you before you have an appraiser give you an idea of what the issues are going to do to the value of the home.
You might find that the cosmetic damages left by the tenant only impact your home value a little bit. It could also be that they’ve done so much damage that the home is worth far less than what it was originally. Regardless of how things are, though, you’ll have to make a decision on whether you want to fix the issues or just sell the home outright.
Let’s explore both of those options.
Fixing The Home Before Sale
Getting things back into working order can be expensive, but those investments are sure to bring your home value back up. Even though you’re taking money out of your pocket to fund the renovations, those investments will be worth it when you see the retained value of your home.
The hard part is getting the extra money to make those repairs. If you’re not in a financial situation to afford those kinds of adjustments, you still have a couple of options. The first thing you can do is get a loan to fund the repairs. Discuss personal loan options with your lender to see if you qualify for enough money to make the repairs needed.
It might be tough to qualify for that kind of cash, though, and personal loans tend to have higher interest rates than most. Another thing you can do is refinance your home and use the equity to fund the renovations. If you’ve had the home for a number of years, odds are that the damages made by the tenant weren’t enough to offset the equity you’ve gained.
Refinancing allows you to get that added value in cash and put it back into the home to restore its worth. After that, depending on the specifications of your mortgage, you can sell the refurbished home for what it was worth before you rented it to the problem tenants. It might even be worth more than it was before, considering that you’ll be putting in brand new renovations.
Selling It As-Is
On the other side of things, renovating a home is a long and stressful process. Refinancing or getting a loan can be difficult depending on your credit, and you might just want to get your house off of the market.
Companies that say things like “we buy any home” or “we buy ugly houses” aren’t joking. They’ll buy a home that is in disrepair from you for close to what it’s worth. You save a good deal of time and money using these services, considering all of the renovations and repairs that are required to get a damaged home back into good shape.
The nice thing is that you don’t have to do anything to the home before these companies purchase it from you. The damaged walls, foundations, or any other issues won’t be a problem.
Selling your home in this way takes around seven days as well. The normal home selling process can take weeks or months, depending on how desirable the home is. If the situation has taken a toll on you and you just want to get your money out of the home to use on different investments, selling your home to a company is an excellent option.
Want to Learn More about Property Management?
Dealing with a trashed house or trashed apartments can be very stressful. The issues are able to be mitigated in most instances, though, and sometimes all you need is a few points of advice to get you through. We’re here to help.
Explore our site for more ideas on maintaining home value, being a landlord, and much more.