[SD Cargadores]

Hello all, I did a search but didn't see anything. Anyways me, wife and baby are relocating back to Southern CA. We bought our first home here in Summerlin 89135 in 2010 and have since gained close to $50K in equity according to zillow and comparable sales. We think it will still grow with the new mall being completed by the end of this year. Can anyone offer advice on the do's and don'ts of renting out your house? Will hiring a property manager take care of everything or do they just collect the rent money? I do all the landscaping and pool maintenance myself but I'll have look for those guys too now. Or should we just sell? I would appreciate the input from those who have done it or if you're looking for a house feel free to pm me. We'll be out by mid June. Thanks!

[SoHoVe]

Check what the comps are renting for in your neighborhood.
The property manager I use takes care of everything for me for a price.
I still cover water, trash, and lawn maint, for the tenant.

Once I calculate my tax deductions its pretty much a wash.

[Willy702]

If you decide to rent it be prepared to do it for at least a few years. Property management can be good or bad, some are just poor check collectors while others are worthwhile investments. Personally I just use a realtor to put it on MLS and get a tenant that way. Tried doing it with Craigslist and it was a major hassle so won't be doing that again.

[MSchu]

Originally Posted by SoHoVe

Check what the comps are renting for in your neighborhood.
The property manager I use takes care of everything for me for a price.
I still cover water, trash, and lawn maint, for the tenant.

Once I calculate my tax deductions its pretty much a wash.

it's not a wash if you have someone else paying down your mortgage for you... that is more than +EV.

[ragabnh]

I have rented my house for the past 5 years since I relocated overseas, I used property management and they were alright.

I pay for the trash and landscape maintenance and I have insurance to cover repair of appliances,

I would say my experience was positive so far.

[SoHoVe]

Originally Posted by MSchu

it's not a wash if you have someone else paying down your mortgage for you... that is more than +EV.

Yes, very true I just meant it wasn't adding to my current disposable income.

In my case I am glad I didn't sell because if I do return I won't have the hassle of finding a place but for people who will not be returning at some point and have a reasonable amount of equity I don't know if its worth it to hold on unless its for the long term.

JMHO

[ScoopLV]

There is absolutely no way I would rent property that I couldn't walk to from my house. Especially not in Las Vegas. I'd just sell the place. Prices are no longer in the toilet.

Yes, you could hold on to the property and realize a larger sale down the road. But unless you're renting to someone who you trust implicitly, the chances of having your house trashed (and the subsequent repair bills to keep the house out of flipper territory) are too great.

[airics]

Originally Posted by ScoopLV

There is absolutely no way I would rent property that I couldn't walk to from my house. Especially not in Las Vegas. I'd just sell the place. Prices are no longer in the toilet.

Yes, you could hold on to the property and realize a larger sale down the road. But unless you're renting to someone who you trust implicitly, the chances of having your house trashed (and the subsequent repair bills to keep the house out of flipper territory) are too great.

Agree

[SD Cargadores]

Thanks for the sound advice! I would rather just sell but then again, I want more than enough money for a down payment in S. CA. I may have have found some tenants already, friend of a friends family. Thy're gonna cover the mortgage, utilities except trash and water, and do the landscaping and pool themselves. Now the question is: Do I charge them first and last months rent to move in with or without a deposit?

[Packrat1]

You need to make sure that you complete and have them sign a Rental Contract. No exceptions. The LVAR one is a good one. Also a drug free and smoke alarm contract. If you have an HOA you must make sure they follow the rules too as you are the one who will get the violation.

I also would still consider a background check and find out where they have been living. They might be great friends of the family but lousy tenants.

Friends or not if they don't live up to their end you really could have a problem getting them out without a contract. First month and a security deposit (often equal to last months rent), key deposit and also any pet deposit. If they can't pay these things up front you need to watch out as they might not be able to actually pay consistently.

Be sure also have them fill out an application to make sure you have their full name dob ect. Remember you are still the owner and are responsible for what happens on your property. Be sure to get Landlord insurance and insist that they have renter's insurance.

I can't tell you how many times I have heard horror stories of damage to units by "friends of the family" and how hard it was to get them out. Additionally write something in about reverting to paid landscapers and pool maintenance if they don't keep it up to par. Which often they don't sadly.

You need to write in quarterly house checks of the property for leaks under the sink ect.. just so you or your designee can get in.

And don't let them move in until the above conditions are met. Just my opinion.