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Any landlords out there?

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  • MrsS1stbaby MrsS1stbaby's Avatar 01-27-10 | 04:55 PM
  • I know we had a member (Karen) that had several rental properties, but I haven't seen her in awhile. Are there any other of you out there?

    Reason I am asking is b/c even though my New Year's resolution was to "be happy with what we have & stop wishing it for something else," I just can't myself & am constantly looking for houses for sale on line. I am ready to move out of our starter home & find our home that will probably be the one we grow old in that is located in a better part of town near better schools. Unfortunately, our little 1940's house has many things that need updating and the value is lower than what we owe.

    A friend of mine that is a real estate agent said a lot people in our position are renting out their current home until the value & selling price are closer together and the real estate agency will search for tenants & take of all that. But I still really apprehensive about the type of people that would be there, the upkeep on 2 properties, and finding someone willing to pay the rent that would cover the mortgage. (which is too high for that area b/c of our home ins covg is REALLY high due to the age of our house; ins agt told us we need to update wiring, plumbing, windows, roof, and 1 other thing to lower the covg, ugh)

    Any insight from any of my smart & sassy money mammas?
  • LMB2007 LMB2007's Avatar 01-28-10 | 02:19 AM
  • I might be able to give you some advice. I do have rental properties myself and I am an investor. I don't do your standard rental process though. To be honest, there is no money and lots of hassle in it. Is there a big enough spread at all between what you could potentially rent it for every month and what your PITI (mortgage, insurance, & taxes) are to even be able to cover it? Could you at least break even every month? I had a home there on the northside that I went through similar issues with, so I may or may not be able to give you some suggestions. What area of J-Ville do you live in?
  • MrsS1stbaby MrsS1stbaby's Avatar 01-28-10 | 10:20 AM
  • I am not looking to make a profit, if that is what you mean. I just want OUT! lol

    I'll message you the answer your question though. Thanks in advance for any advice you can give me!
  • 3Princes 01-28-10 | 11:30 AM
  • We are landlords of sorts. We lived in a detached apartment behind my mother's house which we put lots of our own money in renovating, so we share in the rent.

    When things are going well, it's good money and a great way to be able to move up without selling your house. However, it can be a total PITA too. Lots of times renters don't pay the rent, and it can be really hard to evict them too (and most of them are serial movers, and *know* that you can't force them out for so many months). I have a friend who rented her house and it took her over 6 months to get the woman out even though she wasn't paying rent.

    We dont have a lease with our renters. We've never had a problem with it. The people who are living there now have lived there for 4 years. We had some problems in the beginning with them not paying their rent, but I put them on week-to-week until it was all paid up. They liked that, so now they bring it every week. We had some other problems with them bothering the neighbors, so I drew up a firm letter and it's been ok since.
    So it's just little things like that that can be a total pain, especially since you aren't there to monitor their every move.
Thank you 3Princes!
MrsS1stbaby (01-28-10)
  • 2babygirls 2babygirls's Avatar 01-28-10 | 10:34 PM
  • We have 2 rentals. Neither make us any money, but hopefully when its time to retire we can sell them for some money.

    I have always used a real estate office to find the tenants. I am the worst judge of charachter & my 1st impression is usually its worth it to pay the r/e agent to find somebody. It costs 1/2 a month rent, and they do all the credit checks and showing of the house. I collect the rent myself but from what I've heard its not much to have a property mgr do it...about $125/mo or so.

    We've had 3 families in the 2 houses, and only one has been a problem. We've had one family for 8 yrs and the other for 2 yrs.

    I've always had a 1 yr lease and then it turns into month-to-month. From what I've heard, a lease will really only protect the tenants - if they move early its hard to get your money anyway.

    One house is rented for way under, because I don't want them to move. Its not worth it to me to get the extra $ for a while & then have it vacant for a while. Also I"m getting less rent because I wouldn't settle for anybody with bad credit to begin with. Its more important to me to have a stable tenant than more money each month.
Thank you 2babygirls!
MrsS1stbaby (01-29-10)