Anyone here a lessor/landlord?

[Chordata]

Thinking about renting our our house and buying another one. Sort of scared to do it because I imagine renters are unreliable, come and go, destroy the house, fail to pay rent, etc. (though I used to rent and I did none of those things).

Care to share your experiences?

[Blu-Benny]

our house used to be owned by a little old lady and when she got up there in years, she had a 2nd level added on as an apt.

when we 1st bought the house, we rented out the upstairs for about 6 months.

it was good and bad @ the same time.

1: we had extra money every month

2: the guy was a slob and we had to do some serious cleaning when he moved out and the smell from his BO was unbearable!!!

here are my suggestions from what i learned:

don't slack on the rent, make sure you get it the same time every month.

charge a penalty for every week they are late w/the rent.

have them sign something w/some leagal backing behind it if they want to break their lease or damage something.

make it clear that you need a security deposit and if any damage that is done they won't be getting it back.

get the 1st and last months rent up front, our guy got back w/his wife and wanted out after 6 months.

[MaCruz]

My dad lets people rent his house to people he knows. Never had issues with the family that would rent the house over the years. I'd go there to help him fix minor issues like wear and tear with the fence, but overall there were no complaints from what I know of.

There was one family that lived at the house my parents own and they had trouble paying my parents the rent money. My parents gave them time to pay it all, but I think they just fell way behind so my parents had to kick them out. I think the family that stayed there bought a lot of junk/entertainment like DVD movies, but never had enough to pay my parents when rent was due.

Now the house I currently stay at... my co-worker's parents live right next to me and his dad let 4 college kids rent his 2 story house. I must say every single freakin night they would have parties! Pissed me off because there was no where to park, I would see people taking a piss on their wall, and there were beer cans on the side walk. They had at least 20-50 people when they had parties. The is big, but too damn loud as other houses have kids, and babies trying to go to sleep. This is not a apartment complex.. this is a neighborhood for the middle-upper class people.

Well after all the complaints, and cops dropping by they finally left, and moved out since the Summer Semister was over in July 2009. So far the house is still for rent even today.

[Chordata]

Originally Posted by Blu-Benny

here are my suggestions from what i learned:

I appreciate the suggestions. Fortunately I do some landlord-tenant law, so I have some great contracts at my disposal.

The problem is, no matter how airtight your contract is, it won't do you any good if the people are deadbeats who don't pay rent and destroy the place.

Those are my concerns.

[Blu-Benny]

Originally Posted by O_V_N

I appreciate the suggestions. Fortunately I do some landlord-tenant law, so I have some great contracts at my disposal.

The problem is, no matter how airtight your contract is, it won't do you any good if the people are deadbeats who don't pay rent and destroy the place.

Those are my concerns.

yeah, that's the crappy part.

when we rented ours out, we talked to a guy i know that does a lot of rental property.

he said to get the security deposit which is always kept if the house is damaged.

and then get the 1st and last months rent up front.

good luck to you!!!

[Chordata]

Originally Posted by Blu-Benny

good luck to you!!!

Thanks. I like my house, but it's getting a little small.

Unfortunately, we bought it right when the central Florida real estate boom was at its peak. Zillow.com now values it at ~ $95,000 less than what I paid for it merely 3.5 years ago.

Ouch!

[Blu-Benny]

Originally Posted by O_V_N

Thanks. I like my house, but it's getting a little small.

Unfortunately, we bought it right when the central Florida real estate boom was at its peak. Zillow.com now values it at ~ $95,000 less than what I paid for it merely 3.5 years ago.

Ouch!

i don't know what our's is valued @ now, i'm hoping more b/c we've done some serious things to it....new roof, new siding, insulation, new furnace, new a/c, new water heater, new doors, new windows, patios.

but when we bought it, we paid 15-20k below what it was valued @!!!

it was on the market for almost 2 years, the owner was married and moved 2 hours away, she wanted to get rid of it!!!

she wanted 105k for it, we offered her 84k!!

we got it for 90k and it was valued @ 105k.

[Beta Man]

Originally Posted by O_V_N

Fortunately I do some landlord-tenant law, so I have some great contracts at my disposal.

Well.... you have one of the most important parts taken care of then.... but you're right.... bad tenants are "Contract-proof"!

I would make my decision based on this (and this is no guarantee either)

1) Your location..... if you're in a nicer location, and properties can be rented elsewhere for cheaper, then deadbeats aren't as likely to move to your area......

Of course, they still may....

Also.... is a University close by? You may want to target a family etc.... you certainly don't want a group of people who live together just to cut down on the size of their bills.... because one bolts, then others have a hard time picking up their end of the rent.....

2) Size of your home..... would it be something a family with 2 or 3 kids would want to move to? Often times you can get a family, and may rent it out to them for 2 or 3 years or even longer, and they take care of the place etc and it's a great situation.... they can't afford a mortgage, but want a "home"

3) What condition is your home in? Typically there is a correlation between people with pride and respect for themselves, and those who are reliable-upstanding people....... I'm sure you can find people who don't care if they live in absolute filth, and don't shower/bathe and drink a fifth of rock-gut Vodka every night, yet they pay the rent on time and keep to themselves, and don't trash place......... but it's certainly not as likely.


It really depends on your area.... if it's a lot of nicer Single and Double-Family homes, with no Universities etc.... you can probably score up a young professional or family......

Many people are buying homes because of the market, but many are losing theirs and need some place to go.


Since it doesn't appear that you're hard up to rent it out, you could always put out feelers and try to find a "Friend of a Friend" etc... so you can get a solid reference

My Father-In-Law questions potential tenants pretty extensively, and you can get a pretty good feel for them based on their appearance, and how they interact during a friendly conversation while showing them the place......

Too long winded.... sorry!

[Beta Man]

Originally Posted by O_V_N

Thanks. I like my house, but it's getting a little small.

Unfortunately, we bought it right when the central Florida real estate boom was at its peak. Zillow.com now values it at ~ $95,000 less than what I paid for it merely 3.5 years ago.

Ouch!

Originally Posted by Blu-Benny

i don't know what our's is valued @ now, i'm hoping more b/c we've done some serious things to it....new roof, new siding, insulation, new furnace, new a/c, new water heater, new doors, new windows, patios.

but when we bought it, we paid 15-20k below what it was valued @!!!

it was on the market for almost 2 years, the owner was married and moved 2 hours away, she wanted to get rid of it!!!

she wanted 105k for it, we offered her 84k!!

we got it for 90k and it was valued @ 105k.

Don't forget to get your property taxes adjusted

We had to go to a hearing etc.... but they lowered our houses' assessed value by $110k That means a HUGE savings in our tax payment (especially since we live in one of the higher-tax-rate areas)

EDIT:

we're getting refunded for 7 months of taxes based on the difference too

[Blu-Benny]

Originally Posted by Beta Man

Don't forget to get your property taxes adjusted

We had to go to a hearing etc.... but they lowered our houses' assessed value by $110k That means a HUGE savings in our tax payment (especially since we live in one of the higher-tax-rate areas)

EDIT:

we're getting refunded for 7 months of taxes based on the difference too

ours went up again this year, the assessor came through last year and had a look around!!!

[Beta Man]

Originally Posted by Blu-Benny

ours went up again this year, the assessor came through last year and had a look around!!!

We've only owned our since June or July of 2008, and they don't know about any of the work we've done on it

[Blu-Benny]

Originally Posted by Beta Man

We've only owned our since June or July of 2008, and they don't know about any of the work we've done on it

that's what scares me about having the basement done. i'm confused weather if i put up drywall if that's going to affect anything???

b/c the only thing i'd be changing is putting up 1 wall but then just putting up drywall over the existing foundation walls.

[Chordata]

Originally Posted by Beta Man

Don't forget to get your property taxes adjusted

We had to go to a hearing etc.... but they lowered our houses' assessed value by $110k That means a HUGE savings in our tax payment (especially since we live in one of the higher-tax-rate areas)

Fortunately taxes aren't a huge issue. They've been adjusted, but in Florida I also get a $50,000 exemption (really 2 $25,000 exemptions) on the taxable value.

Besides that I also represent the county property appraiser, so I won't be suing them anytime soon to lower my taxes.

Thanks for the thoughts on renters. My house is a nice (not huge though) house in a subdivision that, lately, has lots of renters. No universities nearby, no condos or apartments nearby. In fact we're close to a state park, so the only trouble I have is the occasional bear taking my trash, foxes, deer, and turkeys.

Great spot, it's just not super close to downtown Orlando. I'm from Atlanta, so the thought of a commute didn't and still doesn't bother me. We can see shuttles take off from Kennedy Space center; we're 50 minutes from the beaches, etc.

All I really want is a bigger house, but there's no way in hell I'll sell my house for the next several years. I do not have $95,000 to pay to my bank.

It's amazing the choice we made to buy the house. Had we just rented a house for one more year, we never would've been in this position. It literally breaks my heart to think about all the money we'd have and/or the kind of house we'd own if we hadn't been so eager to buy 3.5 years ago.

Oh well, live and learn. We're all healthy and we have a job and a nice house. Can't ask for too much, I guess.

[Kyo28]

Landlord here.

The key is finding decent people as renters and drawing up a contract that covers all your bases.

The first renters we had let the pipes freeze until they broke every single time in winter, never did the maintenance works that were their responsibility and so on.

We then took more time to look for and actually took time to talk extensively to the next renters, to make sure they were decent, trust-worthy people. Now everything is going smoothly. Remember: legally you are entitled to refuse any potential renter but once the contract is signed, you can't put them out of the house so easily or quickly (baring extreme circumstances).

[Beta Man]

Originally Posted by Blu-Benny

that's what scares me about having the basement done. i'm confused weather if i put up drywall if that's going to affect anything???

b/c the only thing i'd be changing is putting up 1 wall but then just putting up drywall over the existing foundation walls.

If you add a bathroom, your taxes will go up.....

If the space becomes a "living space" as in.... you have windows, and an exit to the outside..... then it's gonna add square footage to your home, and that falls into a simple formula for your County Auditor..... "More Sq Ft = More taxes!!" !!!!!!!

Otherwise, if it's still viewed as a "semi-finished" basement, you shouldn't have any issues with it raising your value significantly.....




OVN..... sounds like a nice area with a "community" feel.... you could probably get some good renters in there...... I wouldn't be over-bearing, but I also wouldn't be the "Invisible" landlord either......

Taking care of minor things will be a pain if you don't live very close to there..... but if it's a nice, well-maintained home, you probably won't have drains backing up, or electrical outlets stop working etc..... (I say that because the electrical outlet in one of our bathrooms stopped working mysteriously )

[Blu-Benny]

Originally Posted by Beta Man

If you add a bathroom, your taxes will go up.....

If the space becomes a "living space" as in.... you have windows, and an exit to the outside..... then it's gonna add square footage to your home, and that falls into a simple formula for your County Auditor..... "More Sq Ft = More taxes!!" !!!!!!!

Otherwise, if it's still viewed as a "semi-finished" basement, you shouldn't have any issues with it raising your value significantly.....

well, after i'm done, there will be a wall separating it into 2 sides. there will be drywall on all 4 walls, there will be a suspended ceiling, there will be either tile or wood flooring.

there's already a window that can open to get outside if need be and that will be staying.

so, you can entertain down there now, when i'm done, it's just gonna be nicer.

[LeAnn]

Originally Posted by O_V_N

The problem is, no matter how airtight your contract is, it won't do you any good if the people are deadbeats who don't pay rent and destroy the place.

Those are my concerns.

My coworker regularly rents houses, and she always provides the contact information for the previous home she was at and always states why it was she moved.

It would be comforting to know that the person has a good record of payment and maintaining the home.

If you are worried about damage, you might also consider restricting the size of the pet they have. For example you might not want to rent to people with large dogs as they may or may not eat the carpet, their nails will damage wood flooring, they may also eat your floor molding, depending on the bad dog (my classmate's dog chewed on everything even the countertops when she was gone). Even if they agree to pay for damages in a contract, it might just be easier to place the restriction.

[fatediesel]

Originally Posted by Blu-Benny

well, after i'm done, there will be a wall separating it into 2 sides. there will be drywall on all 4 walls, there will be a suspended ceiling, there will be either tile or wood flooring.

there's already a window that can open to get outside if need be and that will be staying.

so, you can entertain down there now, when i'm done, it's just gonna be nicer.

That sounds like you are converting unfinished space to finished space and would likely lead to your taxes going up. If you have to get building permits the county will know you have made the improvements and your taxes will definitely go. If you don't need permits then the county would have to find out somehow that you made the upgrade. I'm not sure exactly what requires permits although I'm sure if you're doing anything electrical they will be required. Make sure and find out if you need permits because you could have some major problems when you sell the house if you don't have proof the upgrades were properly done.

[Blu-Benny]

Originally Posted by fatediesel

That sounds like you are converting unfinished space to finished space and would likely lead to your taxes going up. If you have to get building permits the county will know you have made the improvements and your taxes will definitely go. If you don't need permits then the county would have to find out somehow that you made the upgrade. I'm not sure exactly what requires permits although I'm sure if you're doing anything electrical they will be required. Make sure and find out if you need permits because you could have some major problems when you sell the house if you don't have proof the upgrades were properly done.

when i'm ready to do everything, i'm gonna go down and ask some questions about all of that.

i don't plan on adding any addt'l wiring or outlets, there are quite a few down there now, only gonna pull them off the foundation wall and mount them to the framing i plan on putting up.

only major thing i'm gonna add is an in wall power line for a plasma so no wires are exposed.

that's quite a ways off yet, but i'm hoping no assessor comes through for a while since they just came last year.

[Beta Man]

Originally Posted by LeAnn

If you are worried about damage, you might also consider restricting the size of the pet they have. .

Not sure why I forgot this....... but my Father-in-law has a strict "No Pet" policy......

My friend on the other hand, has a "Conditional" policy on pets, and advertises it as "Large Pets Considered" and he has a family who are great tenants I believe...... and they have a large Bernese (sp?) Mountain dog..... that is pretty up there in age, so it doesn't do much other than lay around..... but they were thrilled to get his place because it had a small back-yard (all they need for a pretty inactive dog) and it's an old dog.... doesn't jump/climb/bark etc.....

He just asked them to bring the dog with them to the house after he showed it to them (it's a duplex, he lives in the other half, so it's important about the barking part too!)

He found good tenants this way, because I'm sure if these people looked at other houses, and the landlord said "do you have any pets" once they say "yeah a dog" and then they say "what kind/size" once you hear 150 lbs or whatever that thing is, unless they are a landlord who is hands-on enough to request to see the dog, no amount of "Oh he's a sweet, older dog" is going to convince that landlord that a 150 lb dog isn't a bad idea!

If you do pets, just ask to see them, and also take an additional pet deposit........

Also, cats are often far more destructive than dogs...... if someone has one of these fancy $900 cats, they probably care about it (and it's digestion etc) so they will probably not let it run rampant tearing things up....... but if someone has a couple of cats that "Found them" (I love when people refer to it that way...... like it's that hard to find a stray cat these days) who knows what else they'll adopt while they are living there.