According to urban legend, Albert Einstein called compound interest the “most powerful force in the universe“.
Tried and true, compound interest is one of the best ways to increase your wealth. Year on year, you earn interest on interest – and the more capital you invest, the more your wealth grows.
Think about the wealth you could generate by forgoing difficult tenants and cumbersome property management, selling your house fast and hassle-free, and plowing your capital into an investment fund.
You’ve got everything to gain by selling your house when it’s occupied by troublesome tenants. Keep reading to understand why.
The Impact of Difficult Tenants on Landlord Well-being
The toll that difficult tenants take on landlords – psychological and emotional – is often overlooked.
“Being a landlord is about financial freedom!” they cry – completely missing the fact that it’s incredibly difficult to know how to deal with disrespectful tenants and have the gall to back up words with action.
It’s not just about the financial losses you might incur – but also about the stress and anxiety tenants can cause. This ranges from minor irritations to major concerns that can affect your mental health and overall well-being.
The constant, neverending worry about what damage they might cause to your property; the fear of potential legal battles; the stress of paying off a mortgage: Expect sleepless nights and high blood pressure. It’s like being held hostage in your own life – with your tenants pulling the strings.
In extreme cases, the stress can even lead to physical health issues, such as hypertension or heart disease.
What’s more, the time and energy you spend dealing with these issues means less time for yourself, your family, and your other pursuits. This can lead to feelings of resentment and frustration, further increasing your stress levels and negatively impacting your quality of life.
Getting Rid of Troublesome Renters
Before talking about selling shop, let’s discuss some of the sneaky ways to get rid of bad tenants.
The first step is to know your rights and responsibilities as a landlord. This helps you navigate the legalities of problematic tenants and ensures that you’re acting within the law.
Eviction (the big “E”) is the obvious solution.
But it can be a lengthy and costly process. This is particularly true in places with strong tenant protections, such as southern California. However, there are other, less confrontational ways to handle things.
For example, you could offer a cash incentive for them to move out, or you might try mediating the issue through a third party.
While not ideal, such options can be more tasteful than going down the formal route. However, while you’re afforded a certain amount of leeway remember that – whatever action you choose – you need to stay on the right side of the law. This is especially true now more than ever. With squatters taking over vacant houses and trying to be treated as tenants, making sure you are covered from a legal standpoint is essential.
Going out of your way to rely on tactics on how to make a tenant’s life miserable will harm your reputation and land you in legal hot water. There’s a better solution, and that’s what we’re here to discuss:
Selling your house for cash.
Evaluating the Cost: Stress vs. Financial Gain
If you’re here, then one thing is true: Being a landlord isn’t as easy as you thought.
The burning question on the tip of your tongue is whether it’s worth it at all. There’s no answer we can give you; for some, the financial benefits of renting out a property outweigh the headaches of dealing with difficult tenants.
Rental income provides a steady, “reliable”, stream of passive income. Plus, properties tend to appreciate over time, adding to your wealth – and being a landlord can even come with tax benefits.
But there are two sides to every coin, and the allure of cash offers can be a compelling reason to exit the rental business. You’re not cashing out: You’re freeing up capital to invest elsewhere.
Does the Financial Gain Outweigh the Costs?
Unfortunately, the signs of a bad tenant often lurk beneath the surface.
It’s easy for tenants to come across as mild-mannered, upstanding citizens during a tour of the house you plan to hand over the keys for – but the stress, time commitment, and potential financial losses can quickly erode the profitability of your rental property.
The constant anxiety of dealing with bad tenants takes a toll on your quality of life and your ability to manage your property effectively (and market it to better tenants).
Rental income and appreciation are enticing – but the reality is often disappointing.
The Pros of Selling a Tenant-Occupied Home
Selling a tenant-occupied home comes with several advantages:
- You exit the rental business and the associated stress
- You receive a substantial cash influx
- You get a clean break
When you exit the business, you’ll find you have more time to pursue other interests and ambitions – or simply enjoy a more relaxed lifestyle. Plus, as we hinted in the introduction, your newfound cash windfall is perfect for investing elsewhere (or paying off debts).
And why shake a stick at a clean break?
If you’ve been dealing with disrespectful tenants for a while, selling the property can offer a fresh start, allowing you to put the difficulties of the past behind you.
The Freedom To Move On
How hard is selling southern California properties? Not as hard as you think…
No more late-night phone calls, no more disputes over rent, no more repairs, no more worries about legal issues. The emotional relief that comes with this decision cannot be underestimated.
It’s a weight being lifted off your shoulders for good.
When you sell to a property buyer, you pay no agent commissions and can sell your house regardless of the state it’s in (or current tenant tendencies). Most property buyers make reasonable, fair offers within one to two weeks – and you could have your property off your hands within 30 days with a little luck.
The Path to a New Beginning
Dealing with difficult tenants takes a toll on your emotional and financial well-being. There might be financial benefits, but these often don’t outweigh the stress involved.
After all, being a landlord isn’t for everyone – and that’s okay.
As a family-owned business, Premier Property Buyers put honesty and transparency first. We work with homeowners to give them a new start, free from the usual hassles involved in selling a house. Learn how it works here.
