Student housing on “The Hill” or older rentals in Goss Grove often tell a story of decades of use. While these properties have generated steady income, they frequently suffer from deferred maintenance. When it comes time to sell, landlords face a critical decision: Do you spend tens of thousands of dollars renovating the property for the retail market, or do you sell it “as-is” to an investor?
This article explores the pros and cons of each approach, with a special focus on Boulder’s unique SmartRegs ordinance. For a comprehensive overview of selling your rental, see our Ultimate Guide.
The “Rehab and Retail” Route
To get the absolute highest price for your property, you need to appeal to owner-occupant buyers—families or individuals looking for a move-in-ready home.
What this entails:
- Cosmetic Updates: Fresh paint, new flooring, updated kitchens and baths.
- Major Repairs: Fixing roofs, plumbing, or electrical issues that will come up in an inspection.
- SmartRegs Compliance: This is the big one in Boulder. A retail buyer will expect the home to be fully compliant with the city’s energy efficiency standards. This can involve expensive upgrades to insulation, windows, and heating systems.
The Risk: You could spend $50,000 on renovations and months managing contractors, only to find that the market has cooled or that the increase in sale price doesn’t cover your costs.
The “As-Is” Investor Sale
Selling “as-is” means selling the property in its current condition, warts and all. You make no repairs and offer no warranties.
Who is the buyer? The buyer is almost always a real estate investor or a company like Cash for Homes Now. We have the capital and experience to handle major renovations and navigate SmartRegs compliance after the sale.
The Benefits of Selling As-Is:
- No Capital Outlay: You don’t have to spend a dime on repairs before selling.
- Speed: You can close in as little as a week.
- Certainty: Cash offers are typically not contingent on financing or inspections, so there is a very low risk of the deal falling through.
- Tenant-Friendly: As mentioned in our article on Navigating Tenant Rights, investors are often happy to buy properties with tenants in place, saving you from the 90-day notice requirement.
The SmartRegs Factor
Boulder’s SmartRegs ordinance is a major hurdle for many sellers. If your property is not compliant, it can be a significant red flag for retail buyers and their lenders. An investor, on the other hand, factors the cost of bringing the property into compliance into their offer.
If you own a older rental that hasn’t been updated in years, the cost and headache of SmartRegs compliance alone can make an “as-is” sale the most logical choice.
Making the Right Choice for You
If you have the time, money, and energy to manage a major renovation project, the retail market might offer a higher upside. But if you want a clean break, a guaranteed sale, and to avoid the hassle of construction and compliance, selling “as-is” is a powerful option.
At Cash for Homes Now, we specialize in buying distressed rental properties in Boulder. We look past the worn carpet and dated kitchens to see the potential. We offer a fair cash price for your property in its current condition, allowing you to walk away without lifting a finger.
