Anyone landlords here?

[1BAD68]

My wife and I own our home and we have another house that we currently rent to my mom.
I found another house that would make a great little rental unit and kicking it around started wondering how it is to rent to the public?
Any experiences, tips or advice to share?

[moparstuart]

 I have one rental property , its nice when they pay but have had a couple you have to hound !!  all in all I have had a pretty good experience .  House is payed for so I just have upkeep on it and taxes and insurance .

[RECHRGD]

I've been tempted before, but the horror stories have kept me away from doing it.  I guess it's kind of a luck of the draw deal.  One time you can get someone that stays for ten years, pays rent on time and keeps the place up.  Next time, they trash the house, are always late on rent and sue your butt off for not providing a livable dwelling.  Bob

[Tilar]

I've had rental houses since the 80's. It's a crap shoot on good renters but if you do a good background check and call their employers and above all LET THEM KNOW YOU DID THIS you're probably going to be ok. I even talk to the people that have had issues with the courts and as long as they know you know all about them, you're probably going to be alright.

The main thing is to be sure the house insurance is actually commercial rental insurance. I have one rental home now valued at $95,000 and I rent it at $650 a month. The insurance cost me $560 a year and it covers up to 6 months rent and all repairs with a $1000 deductible if the renters tear the place up.

My main mandatory requirement is their income must be high enough that the rent is no more than 30% of their combined monthly income and this one is absolutely no exceptions. Not even 31%. I allow them to pick the day of the month that rent is due and I also have a grace period of 4 days from whatever that date of the month is. Anything after that is $5 a day late charges. I also have in the lease agreement that they must pay all my legal expenses if I have to evict them. They also know that any issues with the law that I deem severe is grounds for immediate eviction.

http://www.ezlandlordforms.com/ is a good source for lease agreements and also check your local municipal court web site which will show anything they've been to court over.

I'm in the market for another one for a rental.

[Tilar]

One other thing... Don't sweat the petty stuff. Things happen so if you do a 6 month inspection and you find a hole in the wall, Give them hell and make them help you repair it, but don't let it get to you. I've really been pretty lucky for the last 20 years. The last time any of my places were trashed was in the early 90's.

[Dans 68]

I've been a landlord for more than a few years, and the most important/critical task in my experience is to vet the tenant. Do a thorough background check (credit checks,  landlord references, etc.) and no matter how sad a story you are given about their past, do not rent to them if there is a single blemish on their history. It is not worth it. You will lose time and money. Lots of both. Just a warning....

Dan

[41husk]

agree 100% I have a 7 page application.

[NHCharger]

I've had rental units for the last 10 years. As mentioned above, screening the applicants is the most important item. When I meet potential tenants I tell them I also do a credit check and anyone with a score under 600 does not qualify. It's truly amazing the number of people that think 500 is a perfect score I have made three exceptions and all three turned out to be poor tenants. They did pay their rent but I would not renew their lease after the first year due to other issues.
This sounds stupid but I always check out the car they are driving. If it's fairly new but a shithole on the inside there's a better than average chance your rental unit will be maintained the same way. I also try to spend some time just chit chatting with the applicants, i can usually tell after a ten minute conversation if they would be a good tenant or not.

[bakerhillpins]

I don't rent (My father does) but I recall something about making sure the utilities (like power) are in their name so that if there is a problem with not paying they are responsible not you.  I also recall hearing about this with regard to pot growers who steal power at rentals.  

[Chargen69]

I rent out a house, month to month, with no appliances.  So if somebody wants to rent my house they have to come up with 1st month and one month deposit, appliances if they dont have them, and like was mentioned before, Utilities IN THEIR NAME!  You let them know right away, if they move in they had better get the power in their name, if the balk at that, chances are you dont need them renting your house.

[Inked_Ghandi]

I wish I had landlords like you guys. I gave my 30 days notice on my last house and started cleaning it up. It took my wife and I a week to go through and clean it to the point someone could have come and moved in right that instant. I even had my supervisor and shop chief do a walkthrough so they could also see that the house was up to standard. The only problem was that the freezer door had two dents in it. It was an economy sized fridge. So when they wouldn't give us our security deposit back we asked for a list of items that the money went to. Apparently it costs $400 for an economy sized freezer door including installation. And everything in the house was completely dirty. This is what they were telling me. They also charged me for the dead bushes in the backyard because I didn't water them enough because they had the keys to the sprinkler system. And then they had the nerve to say we still owed them almost $300 for complete house clean up for about 24 hours/$20 hour estimate. Also they kept lying to us saying we needed to get out of the house as soon as possible because they had other renters. My wife told me she drove by the house the other day and it is still as empty as can be. So I guess karma is a bitch.

[Todd Wilson]

I wish I had landlords like you guys. I gave my 30 days notice on my last house and started cleaning it up. It took my wife and I a week to go through and clean it to the point someone could have come and moved in right that instant. I even had my supervisor and shop chief do a walkthrough so they could also see that the house was up to standard. The only problem was that the freezer door had two dents in it. It was an economy sized fridge. So when they wouldn't give us our security deposit back we asked for a list of items that the money went to. Apparently it costs $400 for an economy sized freezer door including installation. And everything in the house was completely dirty. This is what they were telling me. They also charged me for the dead bushes in the backyard because I didn't water them enough because they had the keys to the sprinkler system. And then they had the nerve to say we still owed them almost $300 for complete house clean up for about 24 hours/$20 hour estimate. Also they kept lying to us saying we needed to get out of the house as soon as possible because they had other renters. My wife told me she drove by the house the other day and it is still as empty as can be. So I guess karma is a bitch.

Theres ahole landloards as well as ahole renters.   I lived in a house for 8 years and the landlord pissed and moaned about my deposit nitpicking stuff. Mainly the carpet. It was wore out when I moved in,. Was told they would replace the carpet within weeks of moving in. I was young and single and didnt really care about the carpet.. When I moved out later they said I had trashed the carpet.
It was still the same carpet when I moved in. This landlord was cheap and would drag his feet to fix anything. Water heater went out and it took him a week of jacking around before he bought a new one. Even opened the gas valve to fix the inside. Then after he put the new unit in told me not to run the temperature past a certain spot so it will increase the life of the water heater.

I had a heating and air friend who had a flunky working with him for a while,. They were at my house doing service and I was chatting with the kid Maybe 20-22yrs old. He was talking of the wild party that happened last weekend at his house. They all got drunk and spray painted graffiti all over inside the house.


Todd

[Budnicks]

As a former landlord & former General Contractor... I would like to add to all the great advise here is, Get everything in writing & document it all, there is never too much paperwork or documentation... If you allow animals/pets, get as large of a deposit as you can {I am a animal lover, but most people don't take care of or clean up after their pets like I do}, cat smells are especially really tough to get rid of, way worse than even dog smells {you can plan on a carpet change, I don't care how neat they are suppose to be}...Have a specific document with charges & rates, for each area of the house for cleaning &/or repairs, kitchens,bathrooms, drapes & carpeting etc., when they move in so when they move out they know what to expect, have them sign it, so they know exactly what will be charged if they leave the place worse than when they moved in... "Photo/Video document everything" the condition of the house/apartment before & after the tenants move in/move out... Small Claims Court is a pain in the butt, for rental disputes with out photo/video documentation... I had a 8 units total of 2 bed 2 bath with small back yards & common front yard areas, 2) 4 plexs 1600sqft each unit, 1 car garage & 1 car carport parking per unit, that I rented out in the 90's, I priced them on the upper end of the rental prices for the area {it was an upscale are to begin with}, you will get a better tenant that wants a nicer place, in a nicer area & will tend to keep it nice {most of the time}, if they are paying more for it, & they pay all utilities, I supplied the landscaping/gardener, until I had an older landscape contractor that moved in, him & his wife took such great care of the units because they wanted a break on rent I gave them the opportunity, they ended up buying the units 10 years later... I supplied a maintenance schedule on the pest control, gutter/down pipe cleaning, landscaping & heaters/A/C units...Try to have the tenants supply their own appliances except stove/oven, if you do use your own appliances plan on replacing them often, especially washers & dryers... Try to require/suggest the tenants to purchase renters insurance on their auto policy... If you can avoid it, Never rent to a lawyer {pain in the butts}, Never rent to newlyweds too many arguments {police calls in all hours}, Most, Car guys are also a real pain in the butt, also, College age men are also a pain {loud parties & trash the property}, College age women are usually OK, never rent to couples that aren't married {it becomes a big pain in the butt, if they break up, trust me},Always do a background check, legal history & credit check, call their former landlords, their employers, their bank references, if you can avoid it, don't ever let "section 8 people" get in your rentals, you will never ever get rid of them, or all the petty problems that come with the welfare/section 8 system... Be proactive as a landlord or hire someone to be a manager, charge a large late fee if the rent is late, get it in writing {it will help make them pay on time} check on & drive by frequently, keep the outer appearance clean & well kept as you can, you will have no problem ever renting... Try not to do more than 6 months or a 1 yr rental agreements/leases at a time, if they are bad tenants you only have to deal with them for a year that way... There's more stuff but you will figure it out as you go, if you have any type of bad feeling, about a perspective tenant don't rent to them period...

[Budnicks]

Be Very Careful how you ask some questions, it can be considered discrimination...

[adauto]

My brother owns an apartment building (actually I'm looking at one myself) anyway he works with a management company (5%) to handle all the nonsense. Its worked very well for him, granted 18 units. Lots of good advise here thats for sure. 

[nh_mopar_fan]

What NH and Budnicks said. 

The day you move in, with the landlord if possible, take a video of EVERY room. YOU CANNOT HAVE ENOUGH DOCUMENTATION. It protects you and the landlord. Hell, tell them you'll even give them a copy of the tape.

My parents rented 2 apartments for years and learned early on that when you got a good tenant, you try to keep em. They took hundred under market rates just to avoid the headaches. They finally sold it all at the top of the RE market back  when John Kerry was running for president because they feared he'd increased cap gains taxes if he got elected.   

[NHCharger]

Budnicks had some good points that I forgot to mention. Especially the part about renting to lawyers .
The worst tenants to get besides the section 8 people is single men under 30. Every other night is party night with no regards to the neighbors.
I have the tenants pay for all the utilities. they're a lot more careful about leaving the windows open when they're paying for the heat.
I supply all the appliances including a full size washer & dryer. The W&D are a big selling point when applicants are looking at the apartment. Plus they aren't beating the shit out of the walls and door casings moving these heavy appliances in and out. And I know the W&D are hooked up properly.
I rent my units out for $50 a month less than what I could probably charge. The tenant's know they are getting a very fair price on the rent and I have a very low turn over rate. A friend of mine is always is looking for top dollar on his rentals. His tenant's rarely stay more than a year and the units will sit empty for 2-3 months while he tries to get his price, plus his time spent cleaning the unit and showing it.

[Tilar]

Apparently it costs $400 for an economy sized freezer door including installation.

I'm not sure of your particular situation, but we had a couple move out of the one farm house and they broke one crisper tray in the fridge along with the freezer handle and two of the pieces in the door that hold the items in the door. There were two of those, and all 4 pieces cost well over half of what the fridge cost new. I would have just replaced the refrigerator but it was only a year and a half old.

[Peters02]

Have colleagues who rent - all in the screening.  They also use CLEARNOW.COM to collect rent.  They say its a help to know they have their money sooner or to know they have a deadbeat sooner.

[Paul G]

Very good advice on here. One thing I do is require the prospective tenant to pay for a credit report that I will order. I use a local credit reporting agency. I charge the prospective tenant $35 to run the report, that is if they want to rent the place. I tell them that if there credit is really bad they wont be accepted by the agency I use, just save there money. Most do! Some pay the money expecting to maybe slide by, but get rejected any way. The rest turn out to be good tenants. A persons credit score has usually been a good judge of there financial responsibility.

[learical1]

Very good advice on here. One thing I do is require the prospective tenant to pay for a credit report that I will order. I use a local credit reporting agency. I charge the prospective tenant $35 to run the report, that is if they want to rent the place. I tell them that if there credit is really bad they wont be accepted by the agency I use, just save there money. Most do! Some pay the money expecting to maybe slide by, but get rejected any way. The rest turn out to be good tenants. A persons credit score has usually been a good judge of there financial responsibility.

After 30 years at Ford dealerships, my dealer was bought out in 2008.  I was let go 2 months later.  Cost me my house and my credit rating.  Spent 6 months in a 3 bedroom apartment; me, my wife and 4 kids, a dog, a cat and a ferret while on unemployment.  Thank God my landlord didn't only rely on a credit rating when I went to rent a house afterwards!  BTW, no bankruptcy, everybody got (gets) paid.  Just over 3 years later, I'm co-signing a loan for my son so he can get a car.

[XS29LA47V21]

 
Good thoughts here, I bought my first in the early 1990's with dreams of 40 by 40, I am now 42, I purged what I acquired down to one no brainer to keep (for the moment).  The management co. thing seems to work well in thoughts when you have a volume of units, but it is normally thought the place needs to cash flow (to pay it way).  After changes in life/goals if you will, I would note one key thought which I had happen to me and wish someone had told me, after good renters for basically 20 yrs after cash flowing utopia, but not really making much besides paying it's own way and upkeep with normal no bid deal wear and tear, I had one bad renter after 10-15k repairs and lost rent while I made the repairs made all those good yrs seem not worthwile.  In all those yrs never keep any amount of deposit ever except that one yr the kept deposit did not help much.....

Still seems like a good opportunity in a lifetime to manage and repair rental houses if a person is driven to take care of them, a no brainer in my mind honestly, but not for me anymore (focused elsewhere).

[1BAD68]

Thanks for all the really good advice.
Looks like I'll be putting an offer in this week for the house. I need to do some plumbing repairs (foreclosure that wasn't winterized) and then start screening for renter's.
I'm a self employed contractor so property maintenance is no big deal for me and I have a flexible schedule, that's why this seems like a good thing for us to do, plus having an extra $35,000 in equity on the day of closing.

[Budnicks]

Good luck...

[Paul G]

After 30 years at Ford dealerships, my dealer was bought out in 2008.  I was let go 2 months later.  Cost me my house and my credit rating.  Spent 6 months in a 3 bedroom apartment; me, my wife and 4 kids, a dog, a cat and a ferret while on unemployment.  Thank God my landlord didn't only rely on a credit rating when I went to rent a house afterwards!  BTW, no bankruptcy, everybody got (gets) paid.  Just over 3 years later, I'm co-signing a loan for my son so he can get a car.

Sorry to here about your misfortune, hope things are better for you by now. The credit reporting agency takes situations like yours in to account before they flat out reject someone. If credit history is all good up to a life changing event, then is stable again after that, the person could still be accepted.

[Davtona]

I've had a 4 plex for going on 5 years now. It is in a small rural town close by. The secret is in who you rent to. Nicer apartments attract better people who can afford more and will take better care of the place. Two of my units are rented by retired people. That has really worked out well. They like a nice place and will take care of it and the rent is always on time. And they are long term renters. I try to keep them happy and fix things on a very timely basis. I mean you're going to have to fix it anyway why not do it right away and keep everybody happy. Have a quite in depth lease and no smoking and no pets as policy. Within a year of having it the rental had earned a reputation that was better than what it had with the previous owner. Once you start to form that your rentals become more in demand. I have had no vacancy's now for 2 years. And when one opens up it is filled quickly although they are harder to rent in the winter. People don't like to move then. I do all my own maintaince though but hire the mowing and snow removal. Depending on the repairs hiring everything done would eat up the profits I suspect. Also you need to somewhat enjoy that type of work. If you dread painting, changing out a facuet or pissing with a garage door opener that isn't working quite right then maybe this isn't for you. Helps a lot to have a wife who will clean the place when needed also. Tax wise it is a plus also. I've been considering another one. Lot of good advice brought up by everyone in this thread also. All in all I would do it again.

[1BAD68]

Thanks for all the advice, we bought it and will close on April 6th.
Couldn't pass it up, got it for 50k and 4.75% for 30 years. Pretty cool for a investment property.
Also cool is my nephew and his soon to be wife were looking for a place, so he's going to rent it.
Just a nice little 3 bedroom with a 1.5 car garage and fenced in backyard.

[68 Bullitt Charger]

Had a 2 Family Home, Now a 1 Family however the whole "Rental" thing is not cracked up to be what people think it is. My Rental House was in an excusive high Dollar neighborhood commanding high Dollar rent's and although Renter's would have good credit, nice People, etc, The Apt would wind up getting wrecked, waiting to collect rent, headache's, etc. I personally would never do it again and personally you should really think about all the aspect's before pulling the trigger. The number's on paper sound great, however the headache's are not worth it IMO. Good Luck and all the Best!    Joe NY