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Hi All, We bought a house recently but cannot live in it because of certain reasons. So we are looking to rent the house. We have always been renters not landlords and this is making me nervous. We have rejected a number of what our agent calls 'good' renters.
We have another family who is interested but they want to sign a 2.5 years lease. I think the reasoning is the school in the area where their kid still has about 2 years and 3 months left. I want to know from experienced landords (provided these are good renters financially and by history), are their disadvantages, things to watch out for when renting for so long.
Do you have a mortgage? If so, was it set up for owner occupied, or does it allow you to rent it? That is the first important question.
Next, do you have screening criteria? Minimum credit score, minimum income, etc.? Or does your agent? Look up threads about screening criteria to see what is typical. Also look up typical red flags about prospective tenants.
Will you be having your agent do the property management, or will you manage it? Either way, you should be familiar with your state and local landlord tenant laws, as well as federal laws regarding discrimination.
As for a 2.5 year lease, that is really up to you whether to accept that or not. Just a personal choice. If they are a good tenant, it probably will not be a big deal, it locks in a good tenant for you. That is a big "if" though.
2.5 year lease can be good and bad. You can have a locked in constant income from the same tenant for 2.5 years. The bad thing us when that 2.5 year tenant is a bad one.
I just denied a potential great tenant (on paper) because he was adamant on only a 2 year lease. I don't want to be locked in for that long.
Do you have a mortgage? If so, was it set up for owner occupied, or does it allow you to rent it? That is the first important question.
Next, do you have screening criteria? Minimum credit score, minimum income, etc.? Or does your agent? Look up threads about screening criteria to see what is typical. Also look up typical red flags about prospective tenants.
Will you be having your agent do the property management, or will you manage it? Either way, you should be familiar with your state and local landlord tenant laws, as well as federal laws regarding discrimination.
As for a 2.5 year lease, that is really up to you whether to accept that or not. Just a personal choice. If they are a good tenant, it probably will not be a big deal, it locks in a good tenant for you. That is a big "if" though.
We have a mortgage and we have a letter from the bank approving us to rent the house even though the initial mortgage was owner occupied. We paid a large down payment (35%) and hence they feel more confident.
Our screening criteria is
a. 700+ credit score
b. atleast 3 times income
c. no pets
d. good renting history
We are planning to do our own property management. We spent quite a bit of money in the house, remodelling and just make everything perfect. So there should be no small hassles. There maybe big ones but since we will leave 12 miles from here, I should be able to manage.
We have a mortgage and we have a letter from the bank approving us to rent the house even though the initial mortgage was owner occupied. We paid a large down payment (35%) and hence they feel more confident.
Our screening criteria is
a. 700+ credit score
b. atleast 3 times income
c. no pets
d. good renting history
We are planning to do our own property management. We spent quite a bit of money in the house, remodelling and just make everything perfect. So there should be no small hassles. There maybe big ones but since we will leave 12 miles from here, I should be able to manage.
Sounds good! If these prospective tenants meet your screening criteria, then doing a 2.5 yr lease seems like a reasonable option to me. You just have to decide if it is what you want. There really is no right or wrong answer, just a personal decision.
Don't even consider managing the property yourself, pay the 10% and let a professional management company deal with it, it will save your sanity. They know how to do it, you don't..!! there is a lot more to it than meets the eye, you will encounter headaches you never imagined.
As far as a long term lease, I would love it! If you get a bad tenant on a long term lease, they can be evicted. You PM will know how......
That would take a LOAD off because every step you make as a landlord with regard to rent increases, evictions, or anything to do with the tenancy has to be by the code as set forth by your local rent ordinance, but since you are not in a rent control area you can breathe a little easier...a little... Still, one of the posters here had a really good idea to use a property manager because they really are knowledgeable and can help you navigate the complicated issues that arise from being a landlord. If you are not comfortable or experienced with being a landlord, a good property manager will make your life more pleasant and you will have less headaches. Maybe, in the future when you feel more comfortable with taking on the role, you can try it for a while and if you don't like it, call your property manager again. I do recommend you find a trustworthy and smart property manager that comes with good references, hopefully someone a friend has used and recommends highly because if you get a bad one, that will cause more problems than if you did it yourself. Good luck to you.
We have a mortgage and we have a letter from the bank approving us to rent the house even though the initial mortgage was owner occupied. We paid a large down payment (35%) and hence they feel more confident.
Our screening criteria is
a. 700+ credit score
b. atleast 3 times income
c. no pets
d. good renting history
We are planning to do our own property management. We spent quite a bit of money in the house, remodelling and just make everything perfect. So there should be no small hassles. There maybe big ones but since we will leave 12 miles from here, I should be able to manage.
don't use regular homeowners insurance , you need landlord insurance in most states to be covered properly.
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Rent Control
