Calling All Landlords! Tell It To Me Like It Is!!

[Girls Scout Leader]

A few years ago, my Grandmother gave us some acreage to live on if we would take care of her in her "old age". She is like a mom to me, and I was taking care of her anyway. That's what family does. We set up a brand new moblie home, and even though I would have done it anyway, took care of her till her passing in January. Now my momm and aunt own my Grandmother's place, which is basically where I grew up. Right next door to me.

We had always planned on building a home there, but with DH traveling with his job and the cost of building materials skyrocketing, it has never been done.

So, knowing full well it is now a fixer-upper, DH and I made my mom and aunt an offer on Grandmother's home and land. (Aunt tried to counter offer with a super high price...why is it always the one who has done the least who expects the most?) And I rejuected it. Bottom lined my offer, and they accepted it. It was fair market value.

So, we are painting, etc getting it ready to move into. But what about the mobile? 1990, 3 bed, 1 bath, newer carpet, apint, new ceiling fans, thermo-pane windows, etc. WE want to keep the land, so thought about renting it out.

Now, we have never rented out anything before, or have ever been renters ourselves. But rent on a place like this is almost equal to the new morgage payments. Seems too good to be ture. This is including Taxes and insurance.

So,this is what I am looking for... advice!! And if anybody can tell someone like it is, the good, the bad, the ugly, it is this group! Can you recomend renal agreements, addendums to it, what you would have done differently, msitakes and successes!

 

[barbeml]

I 'm pretty sure tenant laws vary by state and municipality. Contact your township clerk and ask for guidance in terms of certificate of occupancy, lease requirements, insurance, etc.

 

[oogieboogie]

DH and I have been on both sides of the fence. We were tenants until we decided to buy a duplex and rent out one unit.

Lessons learned:

1. Credit check! Don't trust what a prospective tenant tells you. You must do a credit check. If possible, ask for a average deposit bank statement.

2. Lay down ground rules in writing. If you don't want a smoker in there, then it must be in writing. Spell out every little detail. If you don't want squatters friends of the tenants, then put it in writing. If you want your rent paid a certain way at a certain time, that must be in writing. Whether you allow pets or not, that must also be in writing.

3. Document in pictures the condition of the place before tenants move in and after tenants move out.

4. Do your research on tenant/landlord laws very carefully. Most laws I've seen are more skewed towards the tenants rights than the landlord.

5. If, worst case scenario, you need to evict, you must follow the letter of the law in eviction process, or you could get sued by the tenant you're trying to evict.

6. Trust your gut instinct.

Landlording is not for everyone. After experiencing both sides, I honestly have to say I won't be doing it again. But good luck to you.

 

[holycow]

ditto what oogieboogie said...

Definately the credit check!!! even if you know them really well and everybody loves them!!!!!!...(burned on that one!)

 

[Jasminesmommy]

I don't like the credit check thing mainly becayse my husband has realy bad credit that all belongs to his father and we can noy get them to remove it so it looks like we don't pay any bills because there are utliyl bills, foreclosures, repos, unpaid business loans, school loans, etc so when looked at we get a bummed deal and its not even us.

 

[wuv tigger]

Originally posted by Jasminesmommy
I don't like the credit check thing mainly becayse my husband has realy bad credit that all belongs to his father and we can noy get them to remove it so it looks like we don't pay any bills because there are utliyl bills, foreclosures, repos, unpaid business loans, school loans, etc so when looked at we get a bummed deal and its not even us.

This does not sound right. If they are not your obligations they are required by law to remove the information and face stiff fines if they do not. You can get more information at www.creditnet.com

If you are a cosigner and/or the responsible party then they are your obligations and an accurate reflection of your credit. Many people get in trouble by obtaining credit for friends or relatives.

David

 

[holycow]

I can feel your pain jasminesmommy but we had some people who gave us the sob story and my DH fell for it...he is such a softy......6 months later they up and move didn't honor the lease we had...so it is really difficult to sort out the honest ones with the scammers with out the credit check!

 

[oogieboogie]

Originally posted by Jasminesmommy
I don't like the credit check thing mainly becayse my husband has realy bad credit that all belongs to his father and we can noy get them to remove it so it looks like we don't pay any bills because there are utliyl bills, foreclosures, repos, unpaid business loans, school loans, etc so when looked at we get a bummed deal and its not even us.

Jasminesmommy,

if you want, send a pm off to my DH (picantel). He is a consumer protection advocate and he can probably help you or at least give you some pointers on dealing with your DH's credit, maybe even clean it up somewhat. DH is well known on some of the credit forums. You won't believe some of the crap that show up wrong on your credit report.

I think on creditboards.com he's picantel

 

[CajunDixie]

Have the renter give you a deposit so if they leave or are kicked out you have the funds to fix anything they ruined. I would highly recommend you stating No Pets of any kind.

 

[shortbun]

Huh-uh! Not me! I told DH when we got married that he
could either be a husband or a landlord but not both.
I saw/see my parents go through H.... regularly due to
destuction caused by renters. I'd sell the trailer.

 

[pumba]

we always ask for two places of rentals ......that way....their present landlord will not lie just to get rid of them.....so ask for previous ones too......check with the electric company ....gas or whatever to see if they paid their bills on time......if they didn't and you got stuck with them .....they could freeze your water pipes and cause alot of damage......I too would advise the no pets ...of course a fish tank that leaks can cause alot of damage too......the how many people are occupying the rental.......and how many weeks do you allow a visitor to come and stay with them......I mean we have to allow for relatives coming once a year or so.......also over night guests......alot of questions to ask ......and find out too....most has to be written out and notarized......

 

[oogieboogie]

we asked for deposit, and got tenants from h***. When they moved out after we evicted them, the man took a hammer and made several holes in the wall, one of them about tire size, and several other smaller ones in every wall. They also stole my tool set, destroyed the kitchen and peed on the carpet.

I'm not saying all tenants are this bad. My co-worker has been a tenant for 4 years and she's made improvements to the house she's renting out of her own pocket and she loves her landlord and vice versa.

One thing I learned I would never do is rent to a relative. That's like loaning money to a relative. Too much headache.