So, you want to be a landlord. Really? For how long?
Let me start with a disclaimer. I am NOT a property manager. I do NOT specialize in rental properties in Oklahoma or any other state for that matter. But you don’t have to be a specialist to know that our rental market is on fire in Edmond right now. Maybe you have friends or neighbors that have decided to rent out their house instead of selling it. Maybe you’ve heard that if you have even a half way decent house available for rent in Edmond, you will find a tenant with very little effort. I’ve heard that too.
I’ve heard about quite a few people jumping into the business of being a landlord. They are buying a new house for themselves and instead of selling, they are planning to hold onto their house and place a tenant in it.
I’ve also heard about people deciding that it’s not as easy as it’s cracked up to be and wanting out of the “landlord business” after about six months.
Once again, I am NOT a property manager. I help people like you buy and sell homes in Edmond and NW Oklahoma City. While doing just that, I come across tenant occupied homes for sale all the time. Let me tell you, they can be tough to work with. Consider this, the tenants lives are completely disrupted and they have nothing to gain from the sale of the house. In that situation, I might be a little tough to work with too.
Here are just a few ways that tenants can be tough to work with when the house they are renting becomes available for sale;
- Homes don’t show well. Tenants just don’t take care of a house they are renting the same way a homeowner does. So, very often the house is a plain old mess during showings.
- Availability. Per most lease agreements, Realtors are required to give at least 24 hours notice to tenants prior to a showing. This can make it difficult for the selling Realtor to get an appointment that works with the potential buyer’s schedule.
- Tenants come with the house. If a property owner opts to sell a house prior to the end of a lease agreement, the new owner must allow the tenant to stay in the house (and pay rent) through the conclusion of the agreement. Since most folks shopping for a house are planning to live in it, this makes the buyer pool much smaller.
- Sabotage. Yep, tenants can make selling a property very difficult if they don’t want it to sell or even be shown.
Before you join the crowd and become a landlord, please keep those things in mind. After all, at some point you might change your mind and decide to sell it.
Talk to you soon!