Help With Rental House

#26
#26
VolMax said:
Sell the nice house and buy a condo on the beach, or 4 or 5 crack houses and put them on Section 8 and use a management company. Do not rent nice house. One exception - in 'Nooga, you can get lucky and get a 3 year VW renter from Europe. VW wires the rent monthly and they pay at the top of the market rate. Not sure that scenario exists in Mempho.
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Thanks, Max. I'm sure there are some here, with Fedex and all. Not sure.
 
#27
#27
1972 Grad said:
I always said that it took 3 months of the collected rent to pay for taxes and insurance, 3 months to pay for what they tear up, 3 months for long term upkeep and repairs, and it may sit empty for 3 months while you get it fixed back up and find a new tenant. I feel pretty sure that in an affluent area, (I'm not in one) it is better. I would hate to owe money on a house, and expect to do better than stay afloat in my town.
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We own it and the house next to it, outright.
 
#28
#28
1972 Grad said:
It is dying, and that is why I sold most everything, and bought a Summer house in NC mountains, and am looking for a Winter house in Fl. It happened over a period of years. We were a farming community until the 1950's, added a lot of manufacturing, which later moved to Mexico and China.

We had a large local bank failure in which the bank stock traded privately, went public, expanded, then lost a ton during the housing crisis, stopped paying dividends, and the stock dropped from $35 per share to less than $2. It was bought out, and many lost their life savings.

Many people worked in the factories, then farmed part time, and grew tobacco. We had the largest burley tobacco market in the country at one time. It is gone. Many millions left the community when smoking fell out of favor. We had hundreds of small dairy farmers who were run out of business by conglomerates. It was too expensive to pick up their milk in that many different locations. They could not afford to sell their milk for the price offered.

We had 3,500 people working at the Magnavox, later Phillips Electronics factory, that moved to Mexico to try to compete with Chinese TV's dumped on the market. There were other factories that supplied Magnavox , plus the auto industry, now all gone.

Greene Valley Developmental Center employed over 1,000 people at one time. It has closed and the remaining residents are in homes built for the developmentally disabled, and privately managed, all over the state. We have a tremendous opioid and meth problem here. Many can't pass a drug test to take a job.
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Wow,, pardon me for saying so, but your town in nc sounds a bit like Detroit in mi.
 
#31
#31
MphsBlues said:
Thanks, McDad. Do you have any in higher end locations like mine? I guess I'm trying to be optimistic about the possibility that if they rent for 1,700.00 a month, are they more likely not to screw you?
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Not in that range, no.

You own free & clear. That's good.

Will you do repairs or hire out?
What's current appreciation average for your home/area?
Total of yearly taxes?
Is home in an HOA?
Can you get liability insurance?
Occupancy rate for area?
 
#32
#32
If you do decide to sell I know homes in Germantown are selling very fast right now. Have a couple of co-workers who bought/sold houses over asking price within a week of listing.
 
#33
#33
1972 Grad said:
No. The town is in East Tn. I bought in NC to live there half the year, because it hardly ever gets to 80 degrees in the Summer.
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Ah, ok. I misunderstood. The one in NC must be over by Boone or somewhere. I remember playing there in college and that place was COLD in September.
 
#34
#34
McDad said:
Not in that range, no.

You own free & clear. That's good.

Will you do repairs or hire out?
What's current appreciation average for your home/area?
Total of yearly taxes?
Is home in an HOA?
Can you get liability insurance?
Occupancy rate for area?
Click to expand...

Yes, we own it free and clear. I will probably do most repairs. Not sure on appreciation rate, but they are going up. Taxes around 2,500. No HOA, but the area does have rules for what you can do and can't do. Haven't checked about liability insurance. Occupancy rate very high in the area.
 
#35
#35
ATC_VOL said:
If you do decide to sell I know homes in Germantown are selling very fast right now. Have a couple of co-workers who bought/sold houses over asking price within a week of listing.
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Yep, some houses in the area have offers within hours of listing.
 
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#37
#37
MphsBlues said:
Yes, we own it free and clear. I will probably do most repairs. Not sure on appreciation rate, but they are going up. Taxes around 2,500. No HOA, but the area does have rules for what you can do and can't do. Haven't checked about liability insurance. Occupancy rate very high in the area.
Click to expand...

Talk to current insurance agent about coverage and premiums as a rental. Ask about a liability policy to protect you in case of tenant accidents. Have property management companies give you an evaluation of monthly rent potential. I used Renters Warehouse and they do it for free as a foot in the door for business. Their analysis has been rock solid for me. I try to get 1%-2% of home value as monthly rent. Your higher end property may not hit that range, though.

It's high end so you will have to be creative in marketing it; Hospital has residents (some are married with families and spouse is white collar) who might be a perfect fit. Might also be suitable as a corporate lease. Running a classified and mounting a For Rent sign will not attract the right candidates. Higher income tenants have higher expectations, so be prepared.

Get help screening the applicants especially if you are new to this. The worst thing you can do is place the wrong people in your property. Getting them in is a dream. Getting them out can be a nightmare if they make it. Eviction Laws are very favorable to the tenants. And higher income tenants can afford a lawyer to further complicate matters. Rentals are all about minimizing your exposure to risk.

Get help with creating a rental application and contract. The downloadable free ones are barely adequate. Decide what are negotiable and non negotiable for you BEFORE discussing the lease with your approved applicant. Deposits must reasonably cover your exposure to loss...damage, sitting empty between tenants, cleaning, routine wear repair, etc. Also, make sure you verify that any unpaid utility isnt your responsibility if tenant skips out and doesnt pay electric or water bill.

All requests, conversations, instructions, deviations from previous agreements MUST BE documented. Text and email is generally ok. Make it a point to drive by and keep tabs on property. Vary the days and times you check. Inspect the interior when possible once or twice over lease.

Lastly, dont rent if:
1. You are uncomfortable demanding money.
2. You lose sleep worrying about what someone thinks about you.
3. You cannot hold firm to expectations when someone is crying, yelling, cursing.
4. Evicting a family with "nowhere to go" is too hard to stomach.
5. You have no emergency fund.
 
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Reactions: 1 person
#38
#38
McDad said:
Not in that range, no.

You own free & clear. That's good.

Will you do repairs or hire out?
What's current appreciation average for your home/area?
Total of yearly taxes?
Is home in an HOA?
Can you get liability insurance?
Occupancy rate for area?
Click to expand...

I just received a market report for the area from Zillow.
Homes are expected to increase 5.1% in the next year.
 
#39
#39
McDad said:
Talk to current insurance agent about coverage and premiums as a rental. Ask about a liability policy to protect you in case of tenant accidents. Have property management companies give you an evaluation of monthly rent potential. I used Renters Warehouse and they do it for free as a foot in the door for business. Their analysis has been rock solid for me. I try to get 1%-2% of home value as monthly rent. Your higher end property may not hit that range, though.

It's high end so you will have to be creative in marketing it; Hospital has residents (some are married with families and spouse is white collar) who might be a perfect fit. Might also be suitable as a corporate lease. Running a classified and mounting a For Rent sign will not attract the right candidates. Higher income tenants have higher expectations, so be prepared.

Get help screening the applicants especially if you are new to this. The worst thing you can do is place the wrong people in your property. Getting them in is a dream. Getting them out can be a nightmare if they make it. Eviction Laws are very favorable to the tenants. And higher income tenants can afford a lawyer to further complicate matters. Rentals are all about minimizing your exposure to risk.

Get help with creating a rental application and contract. The downloadable free ones are barely adequate. Decide what are negotiable and non negotiable for you BEFORE discussing the lease with your approved applicant. Deposits must reasonably cover your exposure to loss...damage, sitting empty between tenants, cleaning, routine wear repair, etc. Also, make sure you verify that any unpaid utility isnt your responsibility if tenant skips out and doesnt pay electric or water bill.

All requests, conversations, instructions, deviations from previous agreements MUST BE documented. Text and email is generally ok. Make it a point to drive by and keep tabs on property. Vary the days and times you check. Inspect the interior when possible once or twice over lease.

Lastly, dont rent if:
1. You are uncomfortable demanding money.
2. You lose sleep worrying about what someone thinks about you.
3. You cannot hold firm to expectations when someone is crying, yelling, cursing.
4. Evicting a family with "nowhere to go" is too hard to stomach.
5. You have no emergency fund.
Click to expand...

This sounds like very solid advice. Thanks for taking the time to put it together :hi:
 
#40
#40
McDad said:
Talk to current insurance agent about coverage and premiums as a rental. Ask about a liability policy to protect you in case of tenant accidents. Have property management companies give you an evaluation of monthly rent potential. I used Renters Warehouse and they do it for free as a foot in the door for business. Their analysis has been rock solid for me. I try to get 1%-2% of home value as monthly rent. Your higher end property may not hit that range, though.

It's high end so you will have to be creative in marketing it; Hospital has residents (some are married with families and spouse is white collar) who might be a perfect fit. Might also be suitable as a corporate lease. Running a classified and mounting a For Rent sign will not attract the right candidates. Higher income tenants have higher expectations, so be prepared.

Get help screening the applicants especially if you are new to this. The worst thing you can do is place the wrong people in your property. Getting them in is a dream. Getting them out can be a nightmare if they make it. Eviction Laws are very favorable to the tenants. And higher income tenants can afford a lawyer to further complicate matters. Rentals are all about minimizing your exposure to risk.

Get help with creating a rental application and contract. The downloadable free ones are barely adequate. Decide what are negotiable and non negotiable for you BEFORE discussing the lease with your approved applicant. Deposits must reasonably cover your exposure to loss...damage, sitting empty between tenants, cleaning, routine wear repair, etc. Also, make sure you verify that any unpaid utility isnt your responsibility if tenant skips out and doesnt pay electric or water bill.

All requests, conversations, instructions, deviations from previous agreements MUST BE documented. Text and email is generally ok. Make it a point to drive by and keep tabs on property. Vary the days and times you check. Inspect the interior when possible once or twice over lease.

Lastly, dont rent if:
1. You are uncomfortable demanding money.
2. You lose sleep worrying about what someone thinks about you.
3. You cannot hold firm to expectations when someone is crying, yelling, cursing.
4. Evicting a family with "nowhere to go" is too hard to stomach.
5. You have no emergency fund.
Click to expand...
You are cold!
 
#42
#42
McDad said:
Talk to current insurance agent about coverage and premiums as a rental. Ask about a liability policy to protect you in case of tenant accidents. Have property management companies give you an evaluation of monthly rent potential. I used Renters Warehouse and they do it for free as a foot in the door for business. Their analysis has been rock solid for me. I try to get 1%-2% of home value as monthly rent. Your higher end property may not hit that range, though.

It's high end so you will have to be creative in marketing it; Hospital has residents (some are married with families and spouse is white collar) who might be a perfect fit. Might also be suitable as a corporate lease. Running a classified and mounting a For Rent sign will not attract the right candidates. Higher income tenants have higher expectations, so be prepared.

Get help screening the applicants especially if you are new to this. The worst thing you can do is place the wrong people in your property. Getting them in is a dream. Getting them out can be a nightmare if they make it. Eviction Laws are very favorable to the tenants. And higher income tenants can afford a lawyer to further complicate matters. Rentals are all about minimizing your exposure to risk.

Get help with creating a rental application and contract. The downloadable free ones are barely adequate. Decide what are negotiable and non negotiable for you BEFORE discussing the lease with your approved applicant. Deposits must reasonably cover your exposure to loss...damage, sitting empty between tenants, cleaning, routine wear repair, etc. Also, make sure you verify that any unpaid utility isnt your responsibility if tenant skips out and doesnt pay electric or water bill.

All requests, conversations, instructions, deviations from previous agreements MUST BE documented. Text and email is generally ok. Make it a point to drive by and keep tabs on property. Vary the days and times you check. Inspect the interior when possible once or twice over lease.

Lastly, dont rent if:
1. You are uncomfortable demanding money.
2. You lose sleep worrying about what someone thinks about you.
3. You cannot hold firm to expectations when someone is crying, yelling, cursing.
4. Evicting a family with "nowhere to go" is too hard to stomach.
5. You have no emergency fund.
Click to expand...
I have even used property management firms because I thought they could get better tenants and more rent, since they were on percentage. It is not possible to even get 1% of the home values in monthly rent here. Therefore, I'm out.
 
#43
#43
1972 Grad said:
I have even used property management firms because I thought they could get better tenants and more rent, since they were on percentage. It is not possible to even get 1% of the home values in monthly rent here. Therefore, I'm out.
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You have to be out in that kind of market.

Do you have any acquaintances who rent storage units?
 
#44
#44
McDad said:
You have to be out in that kind of market.

Do you have any acquaintances who rent storage units?
Click to expand...
Yes. They do well. I thought about the houses that I have owned and lived in, and the ones I owned and rented. It has been several years since one would rent for the 1% figure. That is what my folks always shot for many years ago. The last few that I sold were at about 3/4 of 1% per month.
 
#45
#45
1972 Grad said:
Yes. They do well. I thought about the houses that I have owned and lived in, and the ones I owned and rented. It has been several years since one would rent for the 1% figure. That is what my folks always shot for many years ago. The last few that I sold were at about 3/4 of 1% per month.
Click to expand...

On storage units, how does one determine market need/saturation, pricing, etc?
 
#48
#48
Man, it's crazy there. We had beautiful weather all the way there - UNTIL we got to Appy st. We got up there and it was cloudy and cold - rained on us the entire game.
 
#49
#49
MphsBlues said:
Man, it's crazy there. We had beautiful weather all the way there - UNTIL we got to Appy st. We got up there and it was cloudy and cold - rained on us the entire game.
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Accuweather gave it a "real feel" temperature of 57 this afternoon, with an actual temp of 60. Normally, it's about mid-high 70's this time of year for a high, and about 60 at night. Normally, I don't find it to be overly rainy, but this week has been.
 
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