It’s possible that you’ve upgraded to a newer, bigger house, but you haven’t put up your original one for sale yet. Perhaps you’ve inherited real estate property after your loved one passed away. Either way, you need to figure out what to do with your extra house.
Renting out your additional house, apartment, or condominium is a viable way to earn extra revenue. As a landlord, you can gain passive income by allowing a tenant to rent your auxiliary home.
This may seem like an attractive choice for you and other homeowners in the U.S. Nevertheless, while there are benefits to this option, you also need to be aware of the potential complications of this arrangement.
Many tenants are decent people who properly fulfill the terms of a lease. However, to be realistic, some tenants can identify amateur landlords and exploit their inexperience. Familiarize yourself with how a tenant can possibly take advantage of novice landlords before you decide to rent out your residential property.
Subletting Your Home –
Some tenants may rent out your entire house or a portion of it without your knowledge. This arrangement is commonly known as subletting. They may post an Airbnb advertisement offering a bedroom to travelers in the local area where your property is located. They could also accept boarders who are willing to share rooms, such as students enrolled in nearby universities. Subletting could potentially cause legal trouble in the long run. Short-term rentals may be considered illegal in your city or town. On top of this, the unofficial guests of your tenant are not legally bound to the behavior requirements of your lease contract.
Concealing Property Damage –
Hiding property damage is one of the most basic ways that tenants can cause inconvenience to landlords. A lot of tenants make an effort to hide damage to your house that is caused by their kids, guests, or pets. Some cover up holes and cracks on the wall by using wallpaper or posters. They may also position furniture on top of stained or torn carpets. Landlords like you have the option to subtract the estimated repair amounts from the security deposits of your tenants. However, repair expenses may be greater than the deposit itself, especially if the structure of your house is compromised. Plus, you may not even discover that the damage exists until the tenants have already moved out from your home.
Holding Noisy Parties –
Socially active tenants may host loud parties that can cause trouble in various ways. This could annoy and distract neighbors and negatively affect your standing with the homeowners association. Uncontrollable party guests may also cause unwanted damage to your house.
Smoking Inside Your Home –
Certain tenants may smoke inside your house even if you ban this activity. The smell of cigarette smoke left behind by your former tenants may potentially turn off future tenants from renting your property. As a result, you may have to thoroughly sanitize your home before you rent it out again.
Failing To Pay the Rent –
Some tenants fail to pay the rental amount consistently. This commonly happens, not because they don’t wish to pay, but because they are experiencing financial difficulties. However, suppose you are lenient as a landlord for several months. In that case, you may find it challenging to collect the full payment or to ask your tenants to leave the property without legal intervention in extreme cases.
Keeping Unauthorized Pets –
Some animal-loving tenants may not strictly follow the pet clauses in your lease contract. They may keep more pets than you originally agreed upon or adopt animals which may cause potential harm to your home.
Practicing Hot-Swapping –
Certain tenants may unofficially end their lease early via hot-swapping. Hot-swapping involves a tenant letting another person take over the lease and occupancy of your house. This may cause legal issues because the new occupant is not bound to follow the original rental contract.
Refusing To Vacate the Premises –
You may be required to evict tenants if they have repeatedly breached the terms of your lease agreement. If they refuse to vacate the premises, you may need to file an eviction lawsuit. The legal process can be a complicated, time-consuming one.
Sell Your House To Avoid Rental Issues as an Amateur Landlord
Renting out your residential property may have its advantages, but it also comes with its own disadvantages. Unless you are an expert landlord, selling your house may be a better option than renting it out. It can bring you more financial value and less hassle in the long run.
Connect with a professional cash buyer like Andrew the Home Buyer if you wish to sell your house in Phoenix and other surrounding areas in Arizona. Call (602) 737-1509 or visit our website today to get your free offer from Andrew the Home Buyer.