loneranger171
PR Addict
thinking of getting a new house this spring in thought I would rent my current home...good idea...bad idea...??? for what my current mortgage is I could rent it out easily
Any landlords out there?
- Thread starter loneranger171
- Start date
pasimp57
PR Addict
John250
PR Founding Father
In todays market, might be better off renting, as long as you still qualify for the loan on the second home. Friend of mine always told me two rules to his renters (yeah, your not legally allowed to discriminate), but he never rented to single males, and usually always tried to rent to single females or older empty nesters.
hershey
PR Elite
The biggest problems I have:
1. They all start out great but 80% will start being late on rent by the second month. If you let it slide without a warning your screwed, it will be late from then on. Never believe the sappy story they give because its not true.
2. 30% of the time your place will need much more cleaning than you could imagine. People just dont take care of things that arent theirs very well.
3. Pets. DO NOT allow pets unless you are ready to spend serious cash on clean up. I dont care how good a dog or cat is claimed to be your place WILL need professionally cleaned at minimum. I would be prepared to replace carpet too. Foo Foo is NEVER a good dog and no matter what you do to clean the house cat odor doesnt go away. If you can go each month to collect rent at the house so you can check on the condition of the house.
4. If you rent it long enough you will get stiffed! If they get more than 1 month behind it is almost a guarantee that you will never see that money.
If you can separate yourself from the house and realize it wont be taken care of the way you do now then rent it. The benefits out weigh the negatives (most of the time) in my experience. But if you have put your heart into the house and feel any type of connection to it then dont rent. You can find a renter that will take care of it the way you do but it is unlikely.
1. They all start out great but 80% will start being late on rent by the second month. If you let it slide without a warning your screwed, it will be late from then on. Never believe the sappy story they give because its not true.
2. 30% of the time your place will need much more cleaning than you could imagine. People just dont take care of things that arent theirs very well.
3. Pets. DO NOT allow pets unless you are ready to spend serious cash on clean up. I dont care how good a dog or cat is claimed to be your place WILL need professionally cleaned at minimum. I would be prepared to replace carpet too. Foo Foo is NEVER a good dog and no matter what you do to clean the house cat odor doesnt go away. If you can go each month to collect rent at the house so you can check on the condition of the house.
4. If you rent it long enough you will get stiffed! If they get more than 1 month behind it is almost a guarantee that you will never see that money.
If you can separate yourself from the house and realize it wont be taken care of the way you do now then rent it. The benefits out weigh the negatives (most of the time) in my experience. But if you have put your heart into the house and feel any type of connection to it then dont rent. You can find a renter that will take care of it the way you do but it is unlikely.
BriarcliffMx
PR Founding Father
x2! Especially on the pets! Unless you own a molly maids and carpet place, and just love losing money (when they move out).
adam63
PR Addict
A few other things to think of... your personal property tax goes up when you own a second home. Usually insurance is more expensive. If you don't find the rite renters you will be working on two homes instead of one, so double the up keep $.
Basically in my experience your are lucky to just break even if you have a mortgage on the property. Yes in the long run the rent will pay off your home if your the type of person who doesn't consider being a land lord a pain in the arse!
Imagine this... You just finished prepping your bike/bikes to go ride for the day, your in the middle of loading up and your renter calls... "The furnace quite working." Now you need to make a decision, do you go ride/race or go fix the furnace?
Just so you know where I'm coming from, I go race then get to the furnace when I can. Been there, done that! I know every situation is different, but I treat them like I do my wife in that situation, "Honey, I'll get to it when I get back"
Basically in my experience your are lucky to just break even if you have a mortgage on the property. Yes in the long run the rent will pay off your home if your the type of person who doesn't consider being a land lord a pain in the arse!
Imagine this... You just finished prepping your bike/bikes to go ride for the day, your in the middle of loading up and your renter calls... "The furnace quite working." Now you need to make a decision, do you go ride/race or go fix the furnace?
Just so you know where I'm coming from, I go race then get to the furnace when I can. Been there, done that! I know every situation is different, but I treat them like I do my wife in that situation, "Honey, I'll get to it when I get back"
loneranger171
PR Addict
Thank for all the good comments...basically the house has no sentimental value to me...but it would need some minor repairs to rent it out...I just figure if I tried to sell it I would end up doing more repairs to make it more marketable and not get anything back and possibly loose money.. I don't mind being a watchful landlord and I got a ton of buddies in the repair business to take care of the furnace while I ride...lol
GeorgiePorgie
PR Founding Father
I should of bought a duplex and lived in half, rented out the other. Friend of mine does that. Has has good renter for 3 years, he's never made a mortgage payment. His renter covers the mortgage and taxes. Pretty much free place to live. Newer duplex so there is minimal upkeep.
Oh and he doesn't allow pets!
Oh and he doesn't allow pets!
PitRacer
PR Founding Father
Georgie that's what I did. My first house was a duplex in Cleveland. I had a tenant upstairs and a friend living with me and made a profit each month. I had good tenants (only 2 in about 6 years) and since I lived in the lower half it was not a big deal to take care of any issues.
The biggest thing to consider is the area the house is in and what sort of tenants will be living there. When I was moving from Cleveland to Medina, I decided to sell my Duplex because the neighborhood seemed to me to be declining.
loneranger171
PR Addict
my house isn't perfect but is in a good neighborhood and has a large yard with a fence....great for pets which I won't allow or for young kids so they don't wander too far....really low property taxes and low mortgage payment so I might give it a try
Double D
PR Founding Father
Rent to blue collar males.
i just threw a chick out. she was too needy.
Worked for the post office had plenty of money but a drug habit and was late with rent always.
2400 square foot nice house for 600 bucks......deal. It is empty now and much easier to take care of. ( no good deed goes un punished)
Right now there are a lot of poeple making good money but have 0 credit cause the USA is stupid when it comes to money.
I am going to put my house up for rent. 1300 bucks a month, 2 months deposit. Strongsville schools.
I will maintain everything. that will eliminate anyone that is on the fence money wise.
I learned this from a guy that did multiple homes. have had rental for 15 years or so.
i just threw a chick out. she was too needy.
Worked for the post office had plenty of money but a drug habit and was late with rent always.
2400 square foot nice house for 600 bucks......deal. It is empty now and much easier to take care of. ( no good deed goes un punished)
Right now there are a lot of poeple making good money but have 0 credit cause the USA is stupid when it comes to money.
I am going to put my house up for rent. 1300 bucks a month, 2 months deposit. Strongsville schools.
I will maintain everything. that will eliminate anyone that is on the fence money wise.
I learned this from a guy that did multiple homes. have had rental for 15 years or so.
GeorgiePorgie
PR Founding Father
Don't rent to a guy a with a Dirtbike habit who wrecks all the time !