Owning a vacant house often brings about the question, “do I rent my house or sell it?”A vacant home in Louisville Kentucky frequently creates more concerns and questions that can be overwhelming and oftentimes leaves an owner feeling there is nowhere to turn.

If you want to rent your home, are you prepared to be a landlord and manage tenants as well as costly repairs? If you decide to sell the vacant property, are you going to attempt to manage that sale on your own?

You may think the only choices are to sell a vacant house yourself or with a Realtor or rent a vacant house in Louisville, KY. There is, however, an easier way – consider selling your vacant property to a real estate investment company.

Sell House or Rent Out – Costly House Repairs

If you decide on the first option – rent my house – be prepared to spend a lot of money. First, you will need to get your vacant house ready to rent with repairs, cleaning, lawn maintenance, and general maintenance inside the home. If you decide to hire a property manager, that is another cost you must take on with your Louisville vacant house.

As a landlord, you are responsible for all ongoing maintenance of the home and property (i.e. plumbing, electrical, roof, foundation, heating, air conditioning) as well as any minor and major repairs. If your renters damage the property, you will be responsible for all the up-front repair costs to prepare the home for the next renters. And don’t forget those costs don’t include cleaning and repairs for normal wear and tear.

It is a difficult and costly process to get retribution for those damages from the renters. So, if you go this route, be prepared to spend three to five percent of the value of the house in regular maintenance and repairs per year in Louisville, Kentucky.

Rent My House or Sell It – Tenant Headaches

Deciding to rent a vacant house will also bring about all the hassles of being a landlord. Once the home is ready for potential renters, don’t forget the advertising costs to find a tenant.

After finding a tenant, you will be responsible for all the paperwork that comes with renting a property in Louisville including the rental / lease agreement, background and credit checks, and monthly accounting documentation. All of these tasks cost money and take up your valuable time.

If tenants do not pay rent, the eviction process is tedious and costs a significant amount of money and time to file eviction proceedings in court. When the house is vacant, whether due to an inability to find renters or tenants not paying rent, you are responsible for paying the mortgage out of your own pocket.

Out of Town Vacant Property Issues when Renting

If you own property that is out of town or out of state when trying to decide to rent my house or sell it, your vacant property can be a huge headache and create more out of pocket expenses. With your location so far away from the vacant house in Louisville, KY, finding a property manager or property management company will be necessary.

The time it will take to locate a property manager, along with the difficulty of interviewing and developing a trustworthy relationship with the management company, can be discouraging. Also, property managers charge a fee for managing your vacant property or rental. The average fees are between eight and 12 percent of the monthly rent, plus expenses.

Selling a Vacant House a Better Solution

When trying to answer the question, “Should I rent my house or sell it?”, it turns out selling a vacant house may be your best solution. Renting your house brings on the stress of becoming a landlord, takes up a significant amount of your time, and is very costly in maintenance, repairs, and property management fees.

But selling your vacant property in Louisville yourself or with a Realtor may not be your best option either. Selling a house with traditional methods will require spending your money for costly repairs, paying real estate commissions and waiting to find a buyer who qualifies for a loan.

If you decide to sell your vacant house, a real estate investor or real estate investment company is often a solution that will work best for the property owner. Oftentimes investors buy homes as-is and pay cash. Partnering with a real estate investor saves money because you will not have to pay any fees or commissions. Also, your valuable time is not wasted because investors close quickly which helps you avoid extra mortgage payments.

So, back to the question at hand, “Should I rent my house or sell it?” Now, you have a good deal of information to help you make an educated decision. If you would like to discuss your option of selling a vacant house to a real estate investment company – a local Louisville, Kentucky company – please do not hesitate to contact us today at SnH Homes.