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Advice please about renting out a home...

Advice please about renting out a home...

My mil that I have posted about earlier has passed away. She left her home to my oldest daughter who is not quite ready to take possession. The home is mortgaged, and we need to rent the home in order to cover the mortgage until my daughter is old enough to financially handle the home herself. We had a rental property for a very short period years ago and had a horrible experience. Can anyone chime in on advice about how to have a better experience. We have an idea of the monthly rent but need advice on what to charge upfront and what should go into the contract. All advice and tips is appreciated!!!

re: Advice please about renting out a home...

Well, it's standard to charge 1st and last month's rent, refundable if no damages are found.

Check out the Craigslist for your area to get an idea of comparison.

Take many very clear and precise photos of the home and its contents to prove any damage later.

Carpet is notoriously bad in rentals.

If you allow pets, it's most likely you'll always have to replace the carpets, right down to the pad. Even the subfloor or concrete below can be affected. One strong suggestion: Nokout. It works! (As does its companion product, Sniper.) This stuff is as good as it promises! :)

Neutral wall paint is a good idea.

Looking for renters via word of mouth just from trusted friends and family might ensure a more positive experience.

Can you afford help from a lawyer regarding wording on that contract? That's what I'd suggest.

re: Advice please about renting out a home...

Sound advise from PP.

Regarding contract, anything and everything you can think of should be in there otherwise its he said she said.

If area where rental is has certain quiet hours on weekends- put it in the contract.

Utilities paid by tenant, in the contract.

If the house comes with appliances (or not as it is in some parts of the country)- in the contract.

If they "destroy appliances" and they are responsible to get their own afterwards or replacing them- in the contract.

Will the tenant be responsible for mowing the lawn and keeping up the house curb appeal?

What are penalties for late rent? What about non payment of rent? How much notice to you by the tenant before they move out? How much notice to the tenant from you before they have to go?

Are they allowed to paint the walls if they don't like the color?

What about putting nails in the wall to hang things up?

The list goes on and on....

Take pictures of the house inside and out, including closets, utility rooms and basements.

Anything and everything you can think of should be spelled out in the contract. Then, if you can, have it reviewed by a real estate attorney to make sure you are with in the law and for possible holes in your contract- that should cost you an hour, or maybe two of lawyer charge but it is worth it.

Also have all the systems checked out (AC, heating, septic/plumbing, electrical) for possible issues before renting out so that there are no surprises when tenants move in.

This post was edited on Dec 23, 2017 01:47 PM

re: Advice please about renting out a home...

I'm probably in the minority here but I'd get a property management company. They will screen the tenants, take care of repairs, be the bad guy if any problems come up. The fees can be written off as a business expense. It's usually 10%of the rent.

re: Advice please about renting out a home...

My boyfriend has been a landlord for thirty plus years and is president of the local branch of a landlord association. I don't have time to reply now, but I will try to remember to in the next week after Christmas.

If I only say one thing it is do background checks and credit checks on utilities

re: Advice please about renting out a home...

Speaking of checking all systems, as housemouse mentioned, if your rental house has a septic system, I would include in the contract what CANNOT be washed down drains/flushed down toilet, with a clause that if they do, and plumbing work needs to be done to repair, it will come out of their deposit, and then they will be charged for whatever is above and beyond their 1st/last month's rent deposit, if any.

You might have some kind of clause about overloading electrical circuits, too. That can cause house fires easily.

re: Advice please about renting out a home...

i would just sell the house unless it's something really special.
We have a rental property and even in hte BEST of circumstances, it's a HUGE headache. and...is your daughter ready to assume a mortgage payment when the time comes? (maybe she would like to do something else, move away, ?)

re: Advice please about renting out a home...

We rent out a condo. We have a rental company handle it all and they take a small cut of the rent. Works out fine. I LOVE having someone else screen the applicants, take care of repairs, collect the rent and (sadly, if needed handle the evictions).

I would strongly consider letting a company handle it all.

I will say that you must be in a position to handle the mortgage (or in our case the condo HOA fees) for periods you do not have a paying renter. That can be a stressful (our agent may have to evict our current tenant, ugh!).

Anne

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