May 24th, 2008
Renting out my house - how Ive been doing it
As you all know there has been all sorts of stuff going on lately. I thought about writing about the crazy tornado that came through here, less than three blocks away this week but I will wait on that until we go take some pictures today. In the meantime, there has been an ongoing effort to rent out my house. Its been quite an experience, thats for sure. Here is a collection of things I have learned:
1) If you go with a management company it may be easier on you but it may not be worth it.
The absolute cheapest I could find was 9% of rent per month, they hold $400 for “possible maintenance” regardless of the fact that I will be doing all of the maintenance and they hold renter’s deposit for the entirety. Considering I am renting my house out for about $1250 per month, add in the “bank charge” and that is approximately $115 per month in rent lost. Now lets add $120 for lost interest on the $1650 they are holding. That comes out to $1500 loss per year. That was a lot for me to swallow.
2) Nothing is a done deal until its actually in writing
I have had 3 different renters so far that have been “sure” only to have things come up. Nothing is a done deal until it really is a done deal.
3) Try to find people you know
The easiest tenants to find are those that you know need a place. In my case I have been attempting to go through my brother to get his friends into the house. The jury is still out but hopefully the guys that are interested work out.
3) Advertise Advertise Advertise
I underestimated what it would take to get people into my house…I figured “its a college town and my house is better than most” which is absolutely true…the problem is that most students are going through management companies so none know about my house. Sign out front, ads in the paper, ads on facebook, ads at the college, the list goes on and on. If you’re not into the “property scene” you are facing bigger hurdles.
5) Keeping your house in showable condition is tough
Especially when there are people living in it. Its a constant job to keep things in the proper condition.
Anyone else been through trying to do this? Any additional tips? Thoughts?
- 2 Comments
- Home and Home Improvement
Never owned a house, much less rented one out…but have you tried Craig’s list? It’s free, you will get wingnuts crawling out of the wood word….but it’s free. Here in New England, all the apartments and rentals I’ve had in the past several years required a credit check. According to my company, this is a $70 or so service.
My advice: use craigslist, meet the people, and when you think you have a serious contender run the credit check. Also, lock them in for a year’s lease, then allow month-to-month with the stipulation of at least 30 days notice before they vacate. I rent storage space and offices, so I go through this kind of thing all the time. Don’t forget to use the old standard: first, last, and security deposit equal to one month’s rent.
BTW, if ever buy a house and want to rent it in central Massachusetts, let me know!
I really don’t have any experience with this yet (hope to soon) but, I have heard renting to people you know is a big no no. What if they can’t pay the rent. It can make for a real awkward situation especially when they say ” just cut me a little slack, I will have it soon”. Gotta be tough on every1 or you will lose money. Hope it works out!