Advice: Renting out a room in our house
makeithome
12 years ago
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sheesh
12 years agolast modified: 9 years agoRelated Discussions
Possibly buying an older home to rent, advice..
Comments (15)Worthy made the real point. My uncle was also a residential landlord his whole life. His advice to me was not to worry about the property. First, find a good renter and get the house for him. Being a landlord is like any other business. You can't just expect to put an ad in a paper then put the renter who answers it in the house and expect good results. A good analogy is someone who starts a small 'boutique' type store. They 'do the work' plowing through trade magazines and web sites and go to trade shows to buy their merchandise. The store flourishes because buyers know they can find unique gifts unavailable anywhere else (because of the owner's hard work). Someone with more money than sense sees the booming business and buys it. They think because they bought something successful that they now have a free ride and hook up with several jobbers to stock the store while they sit back and work the register. 6 months later they're bankrupt as people stop buying, disgusted with the stale merchandise. The renter is the real asset. If you 'do the work', you can find lots of good ones out there. Just don't expect the 'work' to be placing an ad... I suspect your 12K figure for freshing up the house to be unrealistic, even if you do the work yourself...which your talk of contractors indicates that's not feasible. I usually budget 20K (doing most myself) to be able to present an excellent property to my hand-picked tenant. I have no problem leaving the house empty 6 months if necessary to get a tenant I feel good about...I NEVER post a 'for rent' sign. Not the way to get good tenants..again, YOU have to 'do the work'. If having a rental sitting empty is going to seriously affect you financially or emotionally, you probably should't be a landlord. That's the serious truth. When you have a good tenant, keep in touch with them, stop by and visit now and then, bring some beer/wine if they like it. Buy them a fruit basket at Christmas. If they fall onto temporary hard times, cut them a break. If you picked a good tenant, you know it's only a temporary setback for them and they'll be back on track. Letting them be a little short one month won't kill you since they'll bounce back. If their life really goes south, don't hold their feet to the fire on their lease. Let them out and give them back their deposit. If you 'did the work' selecting them, the house won't be trashed and minimal work will get it ready for the next tenant. Remember all the advantages you're getting as a landlord (IRS depreciation, deduction for property tax, loan interest deduction, the appeciation of the property value)... all made possible by your good renter. Like worthy said, he's the most valuable part of the deal....See MoreRenting out your house in this market?
Comments (15)Renting out your property certainly can be done. But it is like taking on a part time job, especially depending on the part of town and potential tenants. Some are more work that others. There is a completely different mentality between renters and owners, and you have to have a certain personality to dealing with tenants (e.g. you won't put up with every excuse why the rent is late, again!). It also helps if you or your spouse are handy and can fix minor things that go wrong. As Abraham said, screen your renters extremely thoroughly and don't just accept anyone...find the right tenant not the first one. You don't want to have vacancies very often, so treat the tenants good, but firm. Finally, calculate what you pay for PITI and add a fudge factor (repairs/profit) to figure out the rent rate. Check around to see if houses are renting for that amount. That will really tell you if you should rent it. Check with your lender on the amount of time they require it rented before you can claim the rent as income in your mortgage application. At my credit union, it was 1 year. Good luck....See MoreOpinion: Should We Sell our Home or Just Rent it Out for a Year?
Comments (44)Hey, all. I thought I would give you an update. We have had one "low ball" offer ~$675,000 since reducing our house price to $749,000. We couldn't get that low so they offered on a higher priced home that had a pool (they really wanted a pool, so I think they preferred our home, but were trying to get us down, so that they could put in a pool). However, I think things are really picking up in the neighborhood. Four high end homes have gone under contract (2 at $799, $699 and $829) in the last couple of weeks, so I am no longer worried about comps. We are going to continue through May with it just "for sale" and then we'll offer it to rent, as well, beginning in June. I am at peace with either option, as I am just excited for us to get on with our lives together in Florida. I appreciate everyone's help, support, and positive energy....See MoreSo we sold our house and rented a dump.........
Comments (18)My family was in a similar position a few years ago with a rental townhouse in ok shape but dirty, dirty. We were moving out from my in-laws house and just wanted a place to live. We had decided against an apartment and our unit was the only townhouse in the area in our price range that we halfway like. The previous tenants were very poor housekeepers (fortunately no animals) and the landlord hadn't done anything to clean up either. If we had another house to consider we wouldn't have bothered with it but we needed somewhere to live. We decided to make the most of it, and I cleaned the carpets and scoured the place from top to bottom. We didn't bother asking the landlord for compensation because we figured if they were going to pay they would have done it before we moved in. We did what it took to make it livable for us. Fortunately our landlord agreed to replace the worst flooring after a year there, which was the carpet in the LR and vinyl in the kitchen. After the flooring was replaced the whole house was much more pleasant and we enjoyed living there. If I were you, I would do what I needed to in the short term to make it habitable and focus on moving into your new home in a few months. I wouldn't want to spend a lot of money trying to get out of my lease, or paying rent on two places just to keep from living in the dirty place. It would be taking money away that you could spend at your new place. And if anything it will make you appreciate your beautiful, clean home even more!...See Moresable_ca
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