Looking for help and advice as new landlord...

**James K** · 07-21-2010, 04:48 AM

Hey there folks. I am new here and will continue to feel the community out. Hopefully we can benefit from what each other has to offer. Here is my situation...

We put our house up for sale In Athens, GA in March and it has not sold. We decided about three weeks ago to put the "rent it" option into play as we are moving next week to Rhode Island. We initially tried to rent for $1100, our monthly mortgage is $900, no luck. We went as low as $850 and finally started to get some bites. We had a couple with several kids, a dog, and three cats show up yesterday and they want it. I know the family by reputation from the school community here, I am a teacher. They are a good family who has fallen on some hard(ish) times and are doing some serious downsizing. They want our place bad, but want it for a minimum of two years. We balked at this initially because we were hoping to get the house back on the market by next March and try to unload it at that point. My wife came up with the idea of doing a two year lease as we are in need of getting someone in because we need the rent to cover the mortgage. Confused yet?

So, the folks came by tonight and my wife floored the idea of the two year lease, but with the monthly rent going to $950. They liked the idea. This will allow us to at least cover the mortgage. However, it means that the house will not be able to be put on the market until spring of '12. This worries me. Also, it is an older house that I have been keeping maintained with ALOT of work. Now this constant effort of doing little stuff will not be done and I am concerned that the house might start to suffer from some disrepair, or the stuff I was able to do, which was considerable, will now have to be done by someone else. This family seems like a solid family, the husband is very handy and is willing to maintain the basics and they will be dealing with the landscaping (mowing, etc.). They have two older kids and two younger ones and I know they will be 'keeping up appearances'.

As for management... We have not decided how to handle this yet. I have contacted several companies and the average charge is about 8% of the monthly. I was also thinking about partially running things myself with a friend (a contractor) making a monthly fee for being the local contact person, doing drive bys and occasional close-up inspections, doing minor repairs, and being the one who sets up any contractors that need to do work. So, that is that. Any help, suggestions, or input would be greatly appreciated.

**gotlivechat** · 09-15-2010, 08:05 PM

Well, you're certainly not going to make money on the deal by the time you include the maintenance costs with the mortgage. And for the house to be tied up until 2012 doesn't really work in your favor unless you somehow raise the rent high enough so that it's a money-maker for you.
Try to keep them at 1 yr lease instead...

**jessicahunny3** · 07-10-2011, 01:30 PM

LPA Landlord Tips are helpful information shared among landlords. Your experiences can be a source inspiration and knowledge for other landlords.

**Carla Hailey** · 08-12-2011, 08:53 AM

First time land lords must thoroughly screen prospect tenants. Always verify employment, as well as rental history and background to protect your investment. Leasing criteria should also be all set before you actually accept tenants.

**Dave Reynolds** · 08-18-2011, 03:55 PM

I strongly advice what Carla recommended. It can be difficult when dealing with others who are currently undergoing hardships because we, as good people, are inclined to help them; however, when push comes to shove, we don't want their hardships to become ours.

Therefore, regardless of who you are renting to, I highly recommend you take the necessary steps to help ensure they are likely to be able to pay the rent in full each and every month...verifying such things as employment, rental history and background are just plain wise and prudent actions to take before legally enabling someone to live in your home.

It's also important to keep in mind that the process of removing an unwanted tenant varies from state to state, and in some states it could be a very lengthy and costly process to get them out...even if they haven't been paying a dime in rent.

**dmike101** · 08-28-2011, 02:28 PM

Unfortunately lots of homeowners go that route have you tried a lease to own or subject to financing? You could make a profit that way and would encourage the leases to maintain the property because they would eventually own it. Just some thought. A lot of homeowners that can't sell their home choose to just rent when in fact you can sell it with financing in place. What do you have to lose if you move and they stop paying the rent? You would be better off not owning and just collecting the mortgage yourself. Just some things I would definitely be weighing. Just realized that post was a year ago?