The current eviction moratorium has left many investors collecting little to no rent due to the guidelines set down by the CDC. But 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. Most property owners turn to the more traditional style of listing a property when they are getting ready to sell real estate, without any thought to 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. Should you find yourself in this position, we will explore how to sell your Louisville investment property when your tenants aren’t paying up.
Real Estate Agent
It can be extremely difficult to attract the average investor to a listing in the real estate market if you are trying to sell your Louisville investment property when your tenants aren’t paying. The fact that your tenants are protected under the order is not something that will go unnoticed by a potential buyer so be prepared to be open and honest regarding your tenant’s current rent payment status. Something else to consider when listing your property with a real estate agent are the inevitable showings. This means making arrangements with tenants to show your investment property. You also need to be prepared to cover the expenses for photography, marketing and repairs for updating the property on both the interior and exterior. On top of that, you will also need to pay commissions and fees associated with real estate agents.
FSBO
The other option to list your Louisville investment property when your tenants aren’t paying is for sale by owner or FSBO. The most important information any buyer will be seeking is the monthly income realized 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 also do not have to worry about tenants responding to questions that they really should not answer to a buyer’s agent or their clients. One issue you can face in this current environment is many tenants may now be home full time because of COVID restrictions. This causes difficulty for tenants keeping a unit spotless, just in case there is a showing.
Direct Buyers
Ready for a quick, painless, and easy solution? Direct buyers typically close much faster than traditional transactions and purchase homes “as-is”. 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. Sell your Louisville investment property to a direct buyer, even if your tenants are not paying! Selling to a professional home buyer is extremely straight forward. They will layout every step of the process and usually have shortened, very clear contracts that are simple as-is purchase agreements. While offers are usually below market, this is for good reason! The buyer is taking on a tremendous risk by purchasing your house as-is, for your home may be more damaged than you realize! This lessens your exposure to legal risks, found in traditional real estate sales.
Ready to leave all of your worries behind!? Looking for your best option? Sell your Louisville investment property to FairSquare House Buyers even when your tenants are not paying. Sellers can expect quick, simple, stress-free transactions from FairSquare House Buyers. Give us a call or send us a message to discuss selling your investment property and the steps to receive your personalized, no-obligation offer. Call 502-417-7467 today to learn more!