As we all know, owning a property can be stressful. Owning a rental property can be even more stressful. There are the common stresses like finding good tenants and evicting those that aren’t. There is also property maintenance to consider, which can be very costly. When a rental property in Los Angeles isn’t maintained properly, it may become subject to the Rent Escrow Account Program aka REAP.
Most commonly, the reason a property goes into REAP is due to the fact that the owner doesn’t have the money to maintain the property. Once it’s in REAP, the rental income isn’t coming in either. Not until the property is back to code and signed off on will that (discounted) rental income become available to the owner.
After reading the title of this post, you’re probably asking yourself: what rewards could there possible be?
The reward comes from selling the property in REAP, and that reward is the removal of stress. This might sound too simple, but the headaches that can come from having a property in REAP are not worth your time. Don’t let the stress drag on any longer! Find a buyer that is willing to take on the burden for you and has the resources to get the property out of REAP. Investors, such as myself, are often looking for rental properties and have the crew to handle the fixes a property might need. Additionally, investors are used to buying properties “As-Is” and all that it entails. Lastly, investors generally pay cash, which means there won’t be any hiccups with getting a loan on the property (which could be an issue with many of the buyers you find on the MLS).
The key is to reach out now. Get that weight off of your shoulders. You don’t have to get your property out of REAP but you can get out of REAP.