When you first buy a property for investment purposes, it’s easy to overlook the downside and the risk of ownership. In theory being a real estate investor may seem pretty exciting however, it doesn’t always turn out to be a pleasant experience. In this article, we will talk about how to deal with a rental property gone bad. The issues of a problem property can range from bad tenants to vandalism, break-ins to not being able to keep up with repairs. Your specific situation may be unique but here at Detroit Fair Offer, we are experts at solving rental property related problems. If you are looking for some great advice on what to do with a rental property gone bad, look no further! So, let’s dig in and get right down to it.
Go Back To The Drawing Board
One way to deal with a problem property is to reorganize your strategy and start over from scratch. If your renters aren’t paying on time then you could charge them a penalty fee for each day they are late. You would need to write this clause into your lease when it’s time to renew the agreement but this can be an effective provision to have in your paperwork. If your tenants stopped paying the rent altogether then you should file for an eviction immediately. After the tenants are removed from the property, you can clean it out and get it prepared for new tenants but this time around reanalyze what went wrong and do your best to prevent the same issues from happening again.
Sell To A Real Estate Investment Company
There are a handful of real estate investment companies in Detroit. Some of them might refer to themselves as property solutions companies or professional cash home buyers but they are all essentially the same thing and usually operate in a similar manner. These are basically professional landlords and typically already own a multitude of investment properties in their portfolio. You could sell your house directly to one of these services and pass the problem onto them which will allow you to cash out and walk away. This exit strategy will put you in a position where you can be freed from the stress and anxiety of owning with a rental property gone bad. Depending on the severity of the situation, you should be able to have the property sold and closed in less than 30 days.