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Ok, so alittle bit of further saga continuation with my chain of questions.
Scenario is like this:
We are looking into upgrading our neighborhood. As in - moving out of here into a better one.
This is in Pacific NW, particularly - rural Kent WA area. Current place is "meth heads" and we allegedly have one as a neighbor. He's under foreclosure notice, county investigation for some violations, and strict police observation.
Our property is the nicest in immediate neighborhood. It's a horse acre 2500 sqf rambler, but property has a lot of maintenance to be done, due to extensive hedging and a lot of lawn. House is in mint condition 13 yo.
At current moment, we do not believe, we will be able to sell it for profit. Bubble aftershock is still in the area. Also, low priced properties around will drag sell price down anyway. Scene is slowly but steadily improving, with general county expansion and urbanization and better people buying out and rebuilding junkers. Bottom line is - we should sit on this property for maybe another 5 or so years.
Hence, we decided to rent it out.
I do not feel like coming here twice a month for entire Saturday to trim hedges and mow lawn. Hedges is the key word. Pretty they are but you start on one end and by the time you done, you already running late on it.
I started considering having property management company involved.
That being said, questions are:
1. What are the usual costs involved?
2. What are the tax negative implications?
3. What hidden riffs should I be watching for going that route?
We are looking at about $2200 rent.
I'd appreciate feedback from owners that actually do or did this. I read enough articles online. I like forums for their 1st hand feedback.
This is in Pacific NW, particularly - rural Kent WA area.
We are looking into ... moving out of here...
Our property is the nicest in immediate neighborhood.
House is in mint condition 13 yo... 2500 sqf rambler,
but property has a lot of maintenance to be done
Sell.
Quote:
Current place is "meth heads" and we allegedly have one as a neighbor.
He's under foreclosure notice, county investigation... and strict police observation.
Sell for whatever you can get.
Quote:
At current moment, we do not believe, we will be able to sell it for profit.
That's a given. The question is how much of a loss you might have to absorb.
Sell anyway.
Quote:
Bottom line is - we should sit on this property for maybe another 5 or so years.
Who says you "should"?
Sell. Take whatever loss you have to.
Disengage yourselves from the property and move on unencumbered.
Rational, it's a NO on all counts. Ding dongs next to us are "docile" per police. I am in close contact with both field sergeants, they will not be around for long. They are in close grip from county and cops and watched by neighbors 24/7 by now. Hood wants them out - hood WILL get them out. I am less worried about it.
We do not sell NOW as after all fees and with current prices, we will be in about $50K hole. Not happening.
Area is IMPROVING as in capital improvements everywhere with every month. This will be a different place in several years.
That's why. With much appreciation to suggestions, original question is not what to do, but how it works via property management company.
PMC basically are your stand in. They are the middle man between you and the tenant. PMCs charge a fee to find a tenant and then a monthly fee to maintain the account. The monthly fee varies from location to company but averages at 8%. The finder fee can be what amounts to one month rent. Basically about 20% of your total yearly revenue goes to PMC. This does not include any repairs or other services. You will be charged for everything that the PMC does for you. The one thing they do us eviction if the tenant doesn't pay. I used a PMC a while back. Did not like the service and went with another. Much better but got soaked with fees for everything. Decided to DIY and haven't looked back since. I have much happier tenants and I don't give up 20%. I'll keep that 20% in my pocket. As for tax negatives not much. You deduct it as a expense for the rental.
I suggest starting a account that is strictly used for that property.
Find a good plumber, gardener and handyman. Always be the one who chooses who lives in your house.
Last edited by Electrician4you; 10-13-2013 at 12:38 PM..
In my area of the country, the tenant in a single family home usually mows the lawn and does basic landscape care ( picking up fallen twigs, weed whacking, etc.) - it's made part of the rental agreement .
Is it different where you are ? Why not have the tenant do the basic property landscape care as part of the lease and hire a gardener to do once a month/ once very two months hedge trimming.
Personally, I can't see hiring a property manager if you're close enough in distance to drive by and do a visual exterior inspection of the place on your own every couple of weeks.
Because this is why I am asking for advice. I have no idea how it works. If tenant can do badic
csre, I can get Knotty Tree guys here to come by twice a summer and have hedges trimmed. Even take a day off and DIY.
Thank you.
In our area the rental management companies take over 50%.
( I'm talking those that handle primarily short term rentals )
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