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I've been a landlord, including acreage, and a renter, including acreage.
That means that I pay six months in advance to ensure that I keep control of a good deal.
If it's a smokin' deal you pay forward even up to a year, if you have a business, such as livestock.
Everyone wins, incuding the cows.
For your renters, all good things must come to an end. (Nelly Furtado)
DH and I bought our first duplex in '94. We've bought four duplexes (and sold two), and have always lived in one of the units since the second one. DH has also done seven "flips" since 2010. Each transaction we've had to displace tenants through either rent increases or evictions.
This is our living and our business and we conduct each transaction as kindly and considerately as possible.
Do not feel bad. Realize that they've been getting a good deal for some time now, but they've always known that as renters they were open to this eventuality and have had the option of preparation.
Life is always about making choices. Living well means making hard choices, but as long as you are respectful and considerate you should be conscience clear.
I'm buying a property that currently has rental tenants. I'm buying this property to live in, not as an investment. It's lower end on price. I know they are paying $600/mo to rent it. It has a garage which he runs a mechanic side business out of.
The soon-to-be previous owner is not charging his tenants anything near market rate. I think his process was to charge market rate at the time of initial rental, but then only raise rent minimally or not at all. He's been cash positive for years, so I don't think it mattered to him.
They will not be able to get anything close to that price for an equivalent property, particularly if they want a house + garage. More likely they will have to pay around $1000/mo at a minimum.
They look like a nice family, but not a lot of money. The dad talked to me today while the house was being inspected and wondered if I would consider continuing to rent to them. I said that I was planning to live in it. They were given 60 days notice a couple weeks ago. He started talking to me about the local rental market and how bad it is, which I'm well aware of.
I feel really bad, like I'm condemning this poor family to the street or something.
I have mixed feelings about this. First of all it's your home and where are you going to live if you don't live in the house? How much will it cost you ? Is that fair to you financially? The only option I can think of that benefits you and them is to live in the house with them . For instance if the house is a 3 bedroom, The family can have two of them and you can have the master. They pay you rent to help with your mortgage and they don't have to leave, if the situation becomes difficult then you can ask them to leave. Anything else is unfair to you.
Lisa
Last edited by vanguardisle; 06-22-2014 at 08:52 AM..
Unfortunately, this is often true. I know our "good deeds" have come back to haunt us sometimes. We still try to help others, but try not to do it to our own detriment.
How long was the house on the market? If it was on the market quite a while, then it sounds like the renters had some time to try to find other arrangements. Was any attempt made by them to do this? In other words, it should have come as no surprise that they might lose their inexpensive housing.
Also, sometimes when someone is doing a favor for someone it turns into enabling. For instance, I know of people that are always wanting help with their bills and use their income for things like cable television, expensive cell phones, alcohol, cigarettes, vacations, etc. We have become reluctant to help people that use their money for the non-necessities, while telling us they can't make it. We have helped people in the past, but were only able to do so because we did not have all of the luxuries. We were only able to save money by living frugally and making our money stretch a little more. So in essence, it is not really fair to "enable the poor" to have the extras in life, while you yourself are doing without them.
Since you are buying a house on the modest end of the house buying spectrum (I don't mean this in a derogatory way, as this is what we have done too and I think it is smart of you), it appears you are not splurging on every expensive pleasure out there.
I think you need to do a little research into the renter's lifestyle, before giving them a "gift" of reduced rent or even extending their stay at market value rent. If you should become a landlord, then you will have higher property taxes (no homestead exemption for living there yourself), higher homeowners insurance and you will still be responsible for the maintenance of the property. Being a landlord is not something to take lightly.
And then there is the issue of, if you do let them stay a while, they still may not leave at the end of their extension and you will have to take eviction action against them. This could be costly, depending on whether you had to hire a lawyer. At the very least, it could be time consuming and aggravating.
Of course, this issue with "getting them out" might still be difficult anyway.
I hope I am not coming across as someone who is stingy or heartless, because I am not, but there are many things to consider and as mentioned earlier, this situation could come back to haunt you and it might be best for you to go ahead and get them out so it is over with and you can start enjoying your new home.
Great post . I agree they may not be able to afford a more expensive rent on a house because they are not spending their money wisely.
I have mixed feelings about this. First of all it's your home and where are you going to live if you don't live in the house? How much will it cost you ? Is that fair to you financially? The only option I can think of that benefits you and them is to live in the house with them . For instance if the house is a 3 bedroom, The family can have two of them and you can have the master. They pay you rent to help with your mortgage and they don't have to leave, if the situation becomes difficult then you can ask them to leave. Anything else is unfair to you.
The only option I can think of that benefits you and them is to live in the house with them . For instance if the house is a 3 bedroom, The family can have two of them and you can have the master. They pay you rent to help with your mortgage and they don't have to leave, if the situation becomes difficult then you can ask them to leave. Anything else is unfair to you.
Yes I am lol! I know it sounds crazy at first but if you think it over these renters could help him pay off his mortgage. Lots of people rent rooms in their houses . He would just be renting to more than one he would include the whole family and can charge a higher rent accordingly. It might work it might not it was just a thought.
I do think however the renters should have their car mechanic business somewhere else. Many storage areas will allow small businesses to operate in a storage unit ( at least they do in Kissimmee and Orlando where I live) for much less then a real business would cost.
Yes I am lol! I know it sounds crazy at first but if you think it over these renters could help him pay off his mortgage. Lots of people rent rooms in their houses . He would just be renting to more than one he would include the whole family and can charge a higher rent accordingly. It might work it might not it was just a thought.
I do think however the renters should have their car mechanic business somewhere else. Many storage areas will allow small businesses to operate in a storage unit ( at least they do in Kissimmee and Orlando where I live) for much less then a real business would cost.
Then why even buy the house? If the buyer wanted roommates or a multiple family situation, stay in an apartment.
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