When you own a vacant home, the bills don’t stop just because your key is no longer in the lock. Especially when you’re not using the house, expenses like utilities and lawn care start to add up.
For Baton Rouge, LA area empty house owners, these costs may start to become too much of a burden.
That’s why it helps to know exactly what goes into the costs of owning a vacant house, so that you know whether it makes sense financially to keep the property, or if you should sell the house.
The Monthly Costs of Owning a Vacant House
The first way to think about the cost of a vacant property is understanding that many bills continue to be due whether the house is occupied or not.
Mortgage Payments and Property Taxes
If the vacant house is mortgaged, that means the bank still wants their money, whether the house is occupied or not. It doesn’t matter if you moved out, or if your relative who inherited the house is away at college.
Even if the vacant house is completely paid off, property tax will still be due. The amount depends on the value of the house and its tax status in the state of Louisiana
Insurance for a Vacant Property
Vacant house owners also need to factor in insurance costs. In some instances, there are restrictions, limitations or requirements for insuring a house that is completely empty.
It’s entirely possible that a home is vacant for an extended period of time, and that the insurance policy does not cover it.
Always call and ask your insurance company if a vacant home is covered under your policy.
Utilities and Other Upkeep
If a property is vacant, but still has power, water and other utilities, then these will obviously add to the cost of owning a vacant house.
Even more upkeep is needed if the owner of the vacant house wants to keep the home in good shape.
Some of the upkeep that may be needed for an empty house includes:
- Lawn care
- Pest control
- Cleaning
- Pool upkeep
- Repairs
- Inspections
These expenses may seem small, but just imagine adding them to an already-expensive mortgage payment.
For a deeper analysis of how the costs of a vacant house add up, along with a vacated property cost calculator, please visit our page: How Much Is Your Vacant House Really Costing You Each Month?, then try our Vacant Property Cost Calculator to see how much you’re really spending on an empty house.
Vacant Houses Can Develop Problems Without Anyone Noticing
Another issue with vacant homes is that problems that may arise have no one to fix them.
While a leaking pipe in an occupied house may be fixed in a matter of hours, a leaking pipe in a vacant house may go unrepaired for weeks or even months.
Water Leaks and Moisture Damage
A small water leak can cause a serious amount of damage to the interior of a home, and Louisiana’s high humidity makes it even more likely that this will happen.
While there’s no way to say for sure that the house will develop a leak, it’s important to consider that this might be an issue, especially if the house goes completely empty for a period of time.
Roof and Exterior Deterioration
Roof damage, siding, window and door issues, as well as other exterior maintenance issues, can also cause serious problems if not attended to.
Plus, storms and weather conditions may cause exterior roof damage which may not be discovered until further damage occurs.
Pests and Unwanted Intruders
Vacant houses are also vulnerable to unwanted pests.
Animals, bugs, and even unwanted human intruders can enter a vacant house and cause damage without the owner’s knowledge.
Security and Property Management Add to the Cost of Vacant Houses
Vacant house owners also have to be able to secure and maintain the property, which may create more costs. Vacant house owners need to be able to check on the house and maybe even hire someone to do this for them if they’re not in the area. Some of the costs may include lawn care, exterior maintenance, lights, upkeep and security.
The Cost of Checking On an Empty House
If the owner of the vacant house lives near the property, it may not be a huge burden to check on the house frequently.
But if the vacant house owner lives several states away, they may have to hire a property manager, trustworthy local friend or a service to check on the property for them. These are additional costs to consider.
Vandalism, Theft and Cleanup
Vacant houses are at higher risk for burglary, break-ins and even fires.
While security measures can be taken to prevent break-ins, these measures cannot stop every form of damage.
This is another expense that goes into the cost of a vacant house.
The Opportunity Cost of Keeping an Empty House
Not every expense is something that shows up on a bill.
When an owner continues to carry a vacant house, they’re also missing out on the opportunity to make a profit, use the property, or sell the property and recoup some of their costs.
This is actually a very important consideration, especially if the owner has no plans for the house.
While this isn’t necessarily an expense, it’s considered an opportunity cost.
Now, this doesn’t mean that the owner of a vacant house should sell the property right away. It does mean that they should consider whether or not the house supports their needs any longer.
How Long Can You Afford to Keep a Vacant House?
Again, it’s impossible to say how long an owner should keep the vacant house. This depends on each person and their situation. One helpful way to analyze the situation is to look at the following:
Your Total Monthly Carrying Costs
What are your total monthly carrying costs for this vacant house? It may help to write them down to get a clear picture.
The Condition of the House
Is the house in good condition? Does it need repairs now or will it need them while it is vacant? If you plan to sell the house, it’s usually a good idea to avoid making unnecessary repairs just to sell the house later.
Your Time Frame
Do you plan to sell the house sometime soon, or move back in? Do you plan to finish renovations on it this year or next? The longer you hold on to the house, the more expenses you will incur.
Your Situation
An inherited house, a former rental property, a house that you moved out of and a house that you moved into with your new spouse are all very different situations with different outcomes. It all depends on what you want to do with the house and what you want your future to look like.
Should You Keep, Rent, or Sell a Vacant House?
Now that we’ve gone through the costs of owning an empty house, it’s time to consider the options.
Keep the Property
Keeping the property is a good option for some, as long as they have a plan for the vacant house and can manage the costs of the property.
For example, if your plan for the vacant house is to eventually move back in or renovate the house, it can be a good idea to keep the house for a while longer.
Rent It Out
Renting the vacant house out may help pay some of the costs of the property.
However, there are many responsibilities that come with being a landlord, and a vacant house is not necessarily ready to become a rental property.
Sell the Property
Selling the property can be a good option for vacant house owners who are ready to move on, or who want to stop paying for a house they aren’t using.
Listings are a great option for selling a house, but you may want to sell your vacant house to a cash home buyer. They can purchase your home as-is, which saves you any hassle of repairs and renovations.
Selling a Vacant House Without Making Major Repairs
Most people that own a vacant house think that they’ll have to renovate the house before they can sell it. In reality, this is not the case.
In fact, if the vacant house has outdated or damaged fixtures, selling it as-is may actually be a great option. There’s no need to renovate the entire house if the vacant house is already paid off and you’d rather take a small loss than continue to pay for the property.
Selling the vacant house as-is doesn’t guarantee a higher sale price depending on the condition of the house, but if you’re planning on doing renovations anyway, it may be a great option for selling your vacant house.
If you are planning on renovating the vacant house, our guide: Should You Repair Your House Before Selling? can help you make the decision.
How Rally Home Buyers Can Help
If you’re a vacant house owner in the Baton Rouge, LA area and you’re interested in learning more about selling your empty house, Rally Home Buyers is here to help.
We buy vacant houses in Baton Rouge and surrounding areas in any condition.
This means that you do not have to renovate or make any improvements to the property in order to sell it to us.
If you’re tired of the costs of a vacant house, or if the vacant property is becoming too much to handle, we can help. Our no obligation process allows you to ask any questions and make any decisions you need to make regarding the vacant house.
If you’re ready for a change, we’re ready to help. Contact Rally Home Buyers to request a no obligation cash offer.