Selling vs. Renting a House in a Bad Neighborhood:
Which One is More Profitable?


Making money off of a rental property that's in a lousy neighborhood isn't easy. After all, location is the first thing potential tenants consider when looking for a house.

Several factors might make people consider a particular neighborhood as a desirable or undesirable place to live. The better the area, the easier it will be to rent the property out, and the more you can earn in the long-term.




Signs Your Rental Property is in a Bad Location

The following areas are often detrimental to market value:

  • Vandalism
  • Noisy surroundings
  • Unpleasant odors
  • Main thoroughfares with Heavy traffic
  • Railroad tracks
  • Commercial or industrial properties
  • High crime area
  • Nearby waste, electrical, or nuclear facilities
  • Cemeteries
  • School district
  • Areas prone to weather damage such as floodplains
  • Noise pollution from nearby airports or freeways
  • Landfills and dumps
  • Government housing or buildings


Reasons Why Renting a Home in a Bad Location Isn't Profitable

No Return On Investment

Besides being a hassle, owning and renting a property in a bad location is a bad investment as your property's value may fall if the neighborhood seriously declines. Typically, landlords whose rentals are in the high-risk area struggle with rental retention.


High Tenant Turnover Affects Owners

  • Vacant properties mean a loss of profits - Even with the house empty, you still need to pay utility bills, mortgage payments, and taxes.
  • Cleaning and moving expenses - It's likely that each time a tenant moves out, you'll need to do some cleaning. Whether you do it yourself or hire someone, trying to make a property desirable can take a lot of effort, time, and money.
  • Expenses of screening tenants - Although renting your home fast without paying attention to tenant quality can be tempting, doing so might cause costly, time-consuming problems over time. To protect your investment, you'll need to screen prospective tenants and pick only the best ones that you feel will take care of your house.


Why is it more profitable to sell a House in a Bad Neighborhood?

When you think of selling your house, putting it on the market is the first thing that comes to mind. However, listing brings many obstacles for owners whose houses need repairs or are in a bad location. Fortunately, home buying companies now offer more flexible and innovative ways to sell any house type.

A real estate investor, or all-cash buyer, is a company that purchases houses as-is and for cash. If you're tired of wasting time and money maintaining your rental property, and you are interested in selling a house in a bad neighborhood, selling it to a trusted home buying company could be the perfect solution.

Most home buying companies' selling process involves these four easy steps:

1. Get in touch with a reputable home buying company in San Antonio, TX, and provide them with your home's necessary information, including its location and size.

2. They will have a representative visit your property, and if your home meets their requirements, they will present you with a fair, no-obligation offer.

3. Choose the closing date that best works with your schedule

4. Receive your cash.