Any landlords? Advice please

[dakcp2001]

I am about to rent out my house. It has been on the market forever and isn't selling and "a friend of a friend" is looking for an apartment to rent. He is a single Registered Nurse, has no pets, and claims he doesnt smoke although the mutual friend thinks he does. What do I need to put in the lease? Any tips on how to check this guy out before letting him move in? I really need advice from people who have rented before. I am so afraid to have my house damanged or that he wont pay. But right now I am paying a full mortgage in addition to my rent here and it is killing me.

Advice?

 

[Uncle Remus]

I am about to rent out my house. It has been on the market forever and isn't selling and "a friend of a friend" is looking for an apartment to rent. He is a single Registered Nurse, has no pets, and claims he doesnt smoke although the mutual friend thinks he does. What do I need to put in the lease? Any tips on how to check this guy out before letting him move in? I really need advice from people who have rented before. I am so afraid to have my house damanged or that he wont pay. But right now I am paying a full mortgage in addition to my rent here and it is killing me.

Advice?

Get a standard lease 'n modify it to your liking 'n put everything in writin', include a hefty security deposit.

Good luck 'n heaven help ya.

 

[Uncle Remus]

Few more things:

If your house (rental) payment to your mortgage company is due on the 1st, then make your renter pay you on the 15th before your next payment is due, that way you have 2 weeks to scramble when he sez he doesn't have it on time.

Hopefully you can charge more than your mortgage so you can stash away that money for repairs (keep your repair receipts for taxes).

Try to build your own private stash to pay your (rental) mortgage so you can float with reliable renters when they're havin' hard times.

I rented a house to the same family for 25 years, they never paid the rent on time, but they always paid.

 

[Lintasare]

Perhaps you could find a leasing company to handle the lease and any property issues.

 

[dakcp2001]

Few more things:

If your house (rental) payment to your mortgage company is due on the 1st, then make your renter pay you on the 15th before your next payment is due, that way you have 2 weeks to scramble when he sez he doesn't have it on time.

Hopefully you can charge more than your mortgage so you can stash away that money for repairs (keep your repair receipts for taxes).

Try to build your own private stash to pay your (rental) mortgage so you can float with reliable renters when they're havin' hard times.

I rented a house to the same family for 25 years, they never paid the rent on time, but they always paid.

Thank you for the tips. Unfortunately the rent is not going to cover the mortgage, I bought when the market was high and I am upside down. Market value of rent in the area is less than my mortgage. I figure getting something is better than nothing that I get now.

If I hire a leasing company, they will take a chunk of the rent and I am already losing money every month. So stressful!

 

[Uncle Remus]

Thank you for the tips. Unfortunately the rent is not going to cover the mortgage, I bought when the market was high and I am upside down. Market value of rent in the area is less than my mortgage. I figure getting something is better than nothing that I get now.

If I hire a leasing company, they will take a chunk of the rent and I am already losing money every month. So stressful!

Yeah, you're right, anythin' to defer those payments is good.

Another thing: Ya could write in a daily penalty fee for late payments, I made a good chunk load with that, it motivates timely payments.

And don't be friendly with your renters, you don't want to be their friend, kwim? (I had another house with a new tenant every year, it wasn't as nice a house as the one I rented out for 25 years.)

 

[belle&sebastiansmom]

Our house has also been on the market and we've spoken to our realtors about renting. A few things you may find useful, though I don't know if laws vary from state to state: Do you plan on keeping the home for sale while it is occupied by a renter? If so, the renter is not obligated to let anyone into the home to look at it. So if the house will still be for sale you probably would want to discuss this with the tenant. Our realtors told us that we would need to have some sort of clause with our renter in the case the house should sell while they are still in their contract. Since you're kicking them out of your house early, it usually involves giving them an incentive, like one to two months worth of rent. You also would have to have it written that they are to vacate if they property sells, and with what incentives, if any, or else they have the legal right to stay until their contract is up.

I know it's different if you rent on your own, not through a realtor, you can be more selective, but we were told that a realty company cannot ask for non smokers, that's discrimination. They have to rent to whoever qualifies and can come up with the cash.

Do you still live close enough that you can check up on the house? Use changing the air filter every month to give yourself access to the inside to take a look around, make sure there's no damage.

Document and get everything in writing. Even what changes they are allowed and not allowed to make to the property. When I was a kid my parents had a home that they rented out while the family got moved around by the military. When we came back to the house after my dad retired, all of the rooms had been wallpapered and bordered. I remember this being a shock to my parents, but also a big hassle to take down once we moved back in.

If I was doing this on my own, not through a company, I'd also find out what are the grounds that you could evict your renter? What if you go in the house and find it damaged? What if he says he's a non smoker but you go in and find burn holes in the floors? What are your legal rights on all ends?

We are probably looking against renting at this point. We've been told too many horror stories about renters, and in our area right now we wouldn't even be able to ask to the rent cost to cover our mortgage payment. Not worth the risk of having the house destroyed.

Good luck. I really do feel your pain!

 

[FlyingDumbo]

I also have a house unoccupied but I am too afraid to rent it out. I am too nervous about damage or unreliable renters.

 

[flamingglobessigmund]

I was going to rent my house seven years ago. My home owner's insurance man came to inspect the circuit breaker. He said something like it would have to be changed/upgraded if I were going to rent the house.

I then listed with a realtor and it sold within a couple of weeks. Yeah, it was seven years ago and I lucked out.

Good luck to you with whatever you decide!

 

[donaldduck352]

I got three>THEY ARE MONEY-PITS.I have'nt made a dime on mine for over 4yrs with the repairs costing more then the rent.The sad part I own them.Im in the red so bad now cuase.

I will tell ya onething that might help you.Have them sign a contract to pay bi-weekly.If you waite a month and they dont pay,you are out of alot money before you can evicted them.

GOOD LUCK

 

[NHdisneylover]

A couple of things off of the top of my head (and yes renting is a nightmare more often that not from our experience--sorry to tell you):

Check the laws in your state and follow them all.

Get landlord's insurance.

Require (in the lease) that the tenant has renter's insurance and provides you with a copy of the policy.

Do NOT leave any utilities on in your name.

If you live where there is heating oil, put in the lease how much heating oil there is on move in and how full the tank must be when the tenant leaves.

Specify how many people maximum can be living at the home (we had three brothers who suddenly moved in their three girlfriends and 4 kids, which was way more than was appropriate to the house).

Search public records to see if the potential tenant has a history of arrest, eviction, bankruptcy, etc. Also call past landlords for references (though, as with jobs, they cannot legally tell you much so this is not all that helpful).

Specifiy, in wirting, what minor repairs are his responislbity vs, yours (yes, tenants will call the landlord to change a light bulb at times).

Put in writing that the yard must be maintained to X standard and that if not a landscaping company will be called in and the bill sent to the tenant (mostly all you can do is insist grass be shorter than a certain length).

There is a lot more, but that is a good start. Also, if you start to realize it was a mistake, start eviction proceedings as soon as you legally can to not draw out the time they are in the house without paying more than absolutely necessary. It is a slow process.

 

[golfgal]

I also have a house unoccupied but I am too afraid to rent it out. I am too nervous about damage or unreliable renters.

Leaving it vacant could be just as damaging.

We have been renting out our old house for 5 years now. We were lucky and found good renters and they have been in the house since the start.

REQUIRE renters to have renters insurance with liability coverage at least double what your house is worth. REQUIRE them to list you as LOSS PAYEE and ADDITIONAL INSURED on the policy. That way, if the policy gets canceled, YOU get a notice too. Also, in the event of a loss, you get paid before they do (if it is property damage). It also covers you if they trash your place-you put a claim in on their policy.

Your regular homeowner's insurance will be able to cover the house but you will have to switch it to a rental policy. Shop around because some companies have better deals than others. We have State Farm and they have a good policy for rental homes.

We have a clause in our lease agreement that says "Any damage above and beyond the security deposit will be the responsibility of the tenants and all damage will be repaired to our specifications by a licensed contractor" or something like that.

You can put in there that there will be NO SMOKING in the house and some kind of penalty if there is-$5000 or whatever.

We also have an appliance repair plan through the gas company and they come out and do an annual furnace and AC inspection (which reminds me I need to call them to do that).

Most importantly, visit your property to keep an eye on things. You do have to let them know you are coming but you can check for any damage, etc. when you are there.

 

[snykymom]

Take pictures of the property, inside & out, before the tenant moves in so that you can prove its condition, preferably with a date-stamp camera. Keep receipts of all improvements made before the tenant moves in (new carpeting, painting, appliances, etc.) so that you can prove what the condition was against what the condition is when the tenant leaves.

Get the prospective tenant's permission in the rental application (not the lease) to do a credit check with all three credit bureaus. Do not rent to anyone with lousy credit.

Get permission to do an employment check.

Get permission to do a criminal background check to the extent permitted by law.

Get references.

Spend an hour with a real estate lawyer - the local bar association can set you up with someone who will meet with you for free or at a reduced cost. Even if you have to pay something, this could be the best money you ever spend!

Check local zoning & land use regulations; see if you need to get a separate inspection or Certificate of Occupancy for rental properties rather than owner-occupied properties.

Good luck!

 

[taitai]

Set up a separate bank account and have the tenant deposit the rent electronically into that account (don't make it your main account). If you have an EFT set up for the 15th of every month you have no issues with "checks getting lost in the mail" or whatever else.

If the tenant is handy and likes yard work, arrange a small rent discount ($50/month) for them taking charge of mowing the lawn, shoveling snow, etc. Makes life easier and is well worth the money.

 

[golfgal]

Keep every receipt for everything associated with the house-ad for the rental, any repairs, mileage to and from to do anything with the house, etc. There are some nice tax writeoffs for rental properties

 

[tvguy]

Before you do anything, check your mortgage to make sure you can even legally turn the house into a rental.