If You Are Serious About Doing A Short Sale, Then You Might Not Want To Rent It Out!

By
Real Estate Broker/Owner with Satar - Amiri Property and Financial Services Corp.

for rent

 

If You Are Serious About Doing A Short Sale, Then You Might Not Want To rent It Out!

 

For those of you who have investment properties and were thinking of renting them out for below market rent to supplement your income while performing a short sale, let me take the time to explain the pitfalls this might have on your short sale.

First, the situation:

You either need to move or have a vacant rental property and need to perform a short sale. You get someone in who states that they will rent the place while helping you sell it. This nice new tenant is everywhere! Maybe they even sell you a sad story.

The Pitfalls of Renting this Property Out:

1. The tenant becomes hostile and does not allow any showings.

2. The tenant does not pay rent.

3. The tenant damages the property and sells everything they can (including the toilet) on Craigslist!

4. The tenant uses the property to commit crimes, such as the selling and using of narcotics. This becomes your liability!

5. The tenant violates your local Home Owner's Association rules and policies, which in turn, places possible fines onto the property.

6. The tenant sues you for breach of contract.

7. The tenant does not maintain your property, making it less likely that you will get an offer to purchase.

As a homeowner, I encourage you to think twice before allowing a tenant to rent a property in which you want to short sale.

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Location:
California Orange County Irvine
Tags:
renting a foreclosure

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Rainmaker
1,843,206
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors

This is good advice for sellers of short sales. Thank you for the post.

September 04, 2010 05:58 AM
Rainmaker
946,141
James Dray
AR., MO., or OK. I can find the home for you.
Wise Custom Realty

Thoughtful and well put, thanks

September 04, 2010 06:25 AM
Rainmaker
579,526
Dan Edward Phillips
Realtor and Broker/Owner
Dan Edward Phillips

Good Morning Satar, good advice for owners considering a short sale.

September 04, 2010 08:24 AM
Ambassador
895,064
Missy Caulk
Realtor - Ann Arbor Real Estate
Missy Caulk TEAM

Excellent. I know a sleazy agent in my area that does that, collects the rent. I refuse to do a deal with him.

September 04, 2010 09:09 PM
Rainmaker
160,481
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp.

Gita, James and Dan...Thanks Guys for the comments and kind words!

Missy - That's even worse when a licensed real estate agent is using their client's listing to collect rent!

September 05, 2010 01:11 AM
Ambassador
2,032,155
Todd Clark
Broker - Beaverton, Oregon Real Estate Expert - (503) 524-9494
Keller Williams Realty

I actually saw one of my sellers get in trouble for this because the bank sent them a letter stating that they had purchased the home under an owner occupied loan and now that they have only owned it a year and a half they were now renting it and they were considering mortgage fraud case against them. (Make sure you talk to a lawyer before you ever consider renting a home that is up for a short sale)

October 12, 2010 12:35 PM
Anonymous
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Rainmaker
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Satar Naghshineh

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