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There are very few of these deals that don't end up costing the "home owner" more by becoming this sort of "accidental landlord" than it will cost them to just take it on the chin up front and sell now.
Not saying it's impossible to get all the stars to align for you... just that it isn't likely to happen.
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The exceptions to consider becoming a Ll include homes where the surface treatments are worn enough to already warrant replacing & redoing (eg paint & carpet) and similar applies to the major systems (windows, roof, etc) and the major appliances like the HVAC. The smaller appliances like the W/D you're obsessing over here don't really matter much.
If those systems are already shot... then WTF right? How much worse will they be a year or two from now when you hope the market will be stronger and that your area will either get better prices or maybe have more qualified buyers.
But how much will you get "as is" for whats left over after the tenant leaves?
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Right now you're still in the prime showing and buying time of the year.
If you can scrounge up ANYTHING resembling a buyer now or before the fall... sell.
Don't even think of renting it out before the leaves turn color.
To rent or to sell the fridge, that is the question!
Quote:
Originally Posted by tamitrail
. . . The perspective tenants have filled out a credit application and given a deposit. . . .The renter's agent asked me at the showing if the washer/dryer stay. I said they were negotiable. They requested them their application. We will leave them as part of the rent, . . . these are added bonuses included in the rent and not something we have to supply.
I feel like we are walking a fine line between what is reasonable and expected and not scaring them off.
If you must rent:
They asked for other things, all of which we agreed to.
Any advice is appreciated!
I would consider selling first, before a tenant depreciates your value and turns away your potential buyers.
Your answer: No, you don't need a home warranty.
You didn't mention whether or not your tenants signed a lease. I hope you have a good, signed, and notarized lease with specified late penalties. If you don't have late penalties written in--get an addendum signed quickly. If there is no incentive to pay on time, tenants will always pay late.
You sound like you left appliances that you did not want to. I understand, I left a $5,000.00 refrigerator because a tenant asked me to. I did so, believing that it could be a deal-breaker. Later, I saw that he had his cheap refrigerator in the garage. He just wanted mine and I had to buy a new one for my new house.
You should choose between selling the refrigerator to the tenant, taking it out, or leaving it (in which you'll have to fight the legality of having to cover repairs).
If you want the tenant to fork over the expense of maintaining your equipment, what do they get in return? Best views in the city? Granite floors and marble countertops? 20% lower rent than comparable property in the market?
Actually, yes, yes and yes. There are NO rentals in our area in our condition. I am not trying to do the minimum. They requested something that was above and beyond the rental listing (actually a few things that we did agree to as I stated before). They are getting a home in pristine condition. Granite counters, ss appliances, tile floors, in perfect condition. They also expressed that they want first right of refusal should we decide to sell the home.
Thank you, at least you see where I am coming from. We are in a higher end community as well.
Quote:
Originally Posted by bentlebee
I rent my private properties and also owne a property management company/brokerage.
One of my own rentals is rented out without fridge and washer/dryer. It is a higher end rental in a resort style community. The tenants never had an issue to bring their own appliances and the present tenant brought everything and took my dishwasher/microwave, stove/range/oven out and stored them in the garage since he had almost new appliances from the home is was going to loose due to foreclosure.
The other one has all appliances but I don't warrant the washer/dryer. I do want to know if anything is wrong with them so I can help them with a cheap official insured repair company and if it is something that can't be fixed it can be removed. I just want to be informed and can decide to pay or not pay for it.
With all properties that we manage we don't warrant any washer/dryers. We recently had one tenant get rid of the washer at a property since she didn't like how it run and bought new ones and threw it out without consulting with us. The owner wasn't happy about that since she would have removed it and transported it to another rental she has, that is why i have now added it that a tenant has to inform us.
A Landlord is not in the appliance business but in the rental business. Only items under the law needs to be provided and repaired, which doesn't make the landlord to be a bad landlord, just a smart business person as long as the landlord takes care of repairs.
You can't however charge the tenant for every repair, but you can put in your contract that the tenant is responsible for all repairs caused by tenants negligence.
Slummy has nothing to do with it. What are you required to provide under the law for a rental unit? It may be under a local building or health regulations or other laws. Example in North Virginia, you must provide a working kitchen. Under health regulations a kitchen must have a stove, sink and refrigerator for all non owner occupied dwellings (rental property) and the LL is responsible for maintaining it. The LL can recover cost to maintain the appliances if the tenant negligence caused the damage, but the LL is still responsible. TRhat is why you need to read up on the laws and don't assume you can or don;t need to do or provide some things.
What state are you in and maybe others can provide answers for that state.
Thank you. We really can't sell as we are underwater...by a lot. But that's another story. We had no plans on moving when the market was so bad, but again another story.
We are only in the application stage right now so that's why I am asking all these questions to be sure it all gets covered in the actual lease.
Quote:
Originally Posted by Justin Time
I would consider selling first, before a tenant depreciates your value and turns away your potential buyers.
Your answer: No, you don't need a home warranty.
You didn't mention whether or not your tenants signed a lease. I hope you have a good, signed, and notarized lease with specified late penalties. If you don't have late penalties written in--get an addendum signed quickly. If there is no incentive to pay on time, tenants will always pay late.
You sound like you left appliances that you did not want to. I understand, I left a $5,000.00 refrigerator because a tenant asked me to. I did so, believing that it could be a deal-breaker. Later, I saw that he had his cheap refrigerator in the garage. He just wanted mine and I had to buy a new one for my new house.
You should choose between selling the refrigerator to the tenant, taking it out, or leaving it (in which you'll have to fight the legality of having to cover repairs).
I don't think that's unreasonable, and it's certainly within your rights to do so (barring any local landlord-tenant law that says otherwise). I've seen a handful of borderline-slumlords around here that require tenants to bring their own appliances.
However, I wouldn't exactly call a refrigerator a "bonus". Frankly, if a potential landlord tried to trump up the fridge as an "added bonus", I'd find somewhere else to rent.
Illegal? Unethical? Improper? No.
A competitive disadvantage? A little strange? A red flag? Definitely.
Quote:
Originally Posted by PacificFlights
First thing you do is grab a copy of your state landlord tenant code and READ it from A - Z!
Understand excatly what they consider a covered rental and what exactly they say is part of a rental property. You may find out that a refrigerator is MANDATORY in a rental. You state laws will explain everything you need to know and follow as a landlord.
There have been many topics on issues related to apliances, repairs, what has to be included, when repairs must be made, etc. In almost all cases where a LL got into trouble because they violated the law, the number 1 thing has been because they never read the laws and didn't understand what was to be done.
Once you start as a LL, this is not like letting friends stay over for a week, you are in a contractual business relationship that is covered my many laws. Being new, not understanding, or not thinking something applies is seldom if ever accepted by a judge for violations of the law. Since some states grant double or triple damages for violations, you don;t want to find out your boo-boo is costing you three times the amount.
Is the fridge negotiable? What does your law say?
Back when I was with my first husband, we rented - only single family homes and in the best neighborhoods. The law in that state did not require a refrigerator and, frankly, I preferred my own. Same with w/d. I strongly urge you to get a copy of the L-T laws in your state and read them. And I suggest that, any appliances you will leave that are not required that you sell to the tenant or move out and store.
I have a feeling this is not going to work well for you, OP. You aren't renting a house, you're renting your home - and that difference is going to take this from a BUSINESS to a personal endeavor. Landlording is not personal and never should be.
The renter's agent asked me at the showing if the washer/dryer stay. I said they were negotiable. They requested them their application. We will leave them as part of the rent, but we want it written into the lease that we will not replace/repair them since they are not required appliances. We feel the same way about the refrigerator. Is this not reasonable? We know we need to replace/repair stationary appliances, heating, a/c, etc. Our realtor says she has never heard of a landlord not repairing appliances, but again, these are added bonuses included in the rent and not something we have to supply.
I've signed leases exactly like that - and for the reasons you state - the landlord had the washer and dryer in the house, and didn't want to move them out, but also didn't want to have to repair or replace them, if something went wrong. I was happy to sign! It meant I got the use of the appliances for free, and if something did go wrong, I just called my Dad, and he fixed it. Worked out well for me!
Back when I was with my first husband, we rented - only single family homes and in the best neighborhoods. The law in that state did not require a refrigerator and, frankly, I preferred my own. Same with w/d. I strongly urge you to get a copy of the L-T laws in your state and read them. And I suggest that, any appliances you will leave that are not required that you sell to the tenant or move out and store.
I have a feeling this is not going to work well for you, OP. You aren't renting a house, you're renting your home - and that difference is going to take this from a BUSINESS to a personal endeavor. Landlording is not personal and never should be.
Actually, we have already come to that reality and understand it is a business. That is why I do not want to pay for any repairs on the washer/dryer...knowing full well they will probably run them to the ground.
This will not be our home any longer. We are moving on....7 hours away in fact. I read the handbook and it says nothing about having to supply a refrigerator, washer or dryer.
I've signed leases exactly like that - and for the reasons you state - the landlord had the washer and dryer in the house, and didn't want to move them out, but also didn't want to have to repair or replace them, if something went wrong. I was happy to sign! It meant I got the use of the appliances for free, and if something did go wrong, I just called my Dad, and he fixed it. Worked out well for me!
Thank you for stating the other side of this. I'm basically going to tell the tenants, if they want the washer/dryer, they are responsible for their maintenance, otherwise they will not be included. They can also choose to purchase them, if they would like.
Last edited by tamitrail; 06-01-2011 at 07:22 AM..
Reason: typo
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To rent or to sell the fridge, that is the question!
If you don't have late penalties written in--get an addendum signed quickly. If there is no incentive to pay on time, tenants will always pay late. 
