Listing a property for rent by self (apartment, liable, landlords)

[WorldKlas]

Welcome to the world of Landlording!

Probably a great idea to use an agent to start with if you haven’t educated yourself. I never have used or paid an agent fee. Read the book LANDLORDING. Check out your applicants yourself. I use Equifax Smartmove. I don’t accept credit ratings below 700, regardless of the reason. I never accept advance rent. Sometimes folks with a bad rental history will offer several months’ advance rent. Run from this kind of applicant — makes it impossible to evict paid up tenants who break other rules (destruction of the house, having unauthorized roommates, smoking in the house, etc.)

https://www.amazon.com/Landlording-H...40_&dpSrc=srch

[Spottednikes]

Normal tenant agency comp here is 10 percent of one months rent. I pay 300. Flat on my rentals, which is about twice the avg here. (Most of my rentals are in the 1100-1400 price range).

[karen_in_nh_2012]

Originally Posted by srick123

Thanks for your suggestions!!!
Since this my first time being a LL, I'm using an agent to do all the ground work for me and get the property listed/ rented. As it is a new home, builder warranty covers most stuffs for the 1st year. So I plan to do the property management myself. The vacancy rate seems to be pretty low and its in a good school district catering to families.
Rental comps around the area indicates a good cash flow... Let me see how it goes!!!

You didn't mention one really important thing: do you have a mortgage? If so, does your lender know you are NOT occupying the property you are buying? Loans for owner-occupied properties and loans for INVESTMENT properties are very different; the latter normally require higher down payments AND have higher rates.

(And as someone else pointed out, as soon as you change your insurance on the house -- which you MUST do or be prepared to have any and all claims denied -- your lender will find out you're not living there.)

I'm a little flabbergasted that you have gone into this knowing so little ... I became an "accidental landlord" more than 6 years ago but I read a TON before I took the plunge and I did a million financial calculations first. It's generally worked out very well, but that's because it's luckily a VERY strong rental market for houses.

[parentologist]

Why in the world would anyone rent out a brand new house? The tenants are going to destroy it!

That being said, I have a friend who has a very good system for renting out a house that he lives far away from. He doesn't want to have to deal with the aggravation and expense of turnover. So he offers a three year rental contract, with the rent going DOWN a little every year. So let's say it's 2000/mo first year, 1900/mo second year, and 1800/mo third year.

They're allowed to move out after the first year. No one ever moves out early. Everyone stays for three years. At the end of the three years, he pays to freshen it up, and starts all over again. Most of the tenants wind up buying after having lived there for three years.

I agree with all those who say that you are too naive to be a LL.

[Stagemomma]

i don't think I'm as naive as the OP but I'm also here seeking info about being a landlord.

I own a home in a hot hot hot university neighborhood. I have been offered a job 2 hours away and for a variety of reasons I don't want to sell the house just yet. I pay $1075 per month mortgage and I can rent it out to grad students for $1400. Maybe more if I'm lucky. The house is a little shabby but has newish appliances, newish roof, new HVAC and a new hot water heater. Beyond your average household catastrophe there are no major repairs in the works.

I have a good neighbor who is a general contractor and stay at home dad I think would be an awesome property manager. He would only have to troubleshoot when problems arise. I will arrange for yard maintenance, and regular exterminator visits. I don't need to make a profit...just make enough to cover home maintenance.

How much should I pay him for this commitment? A percentage of the rent? $100 a month? Ten percent? Twenty?

[FIREin2016]

If you do it right, there is no need to pay a tenants rental agency.

[MrRational]

Originally Posted by Stagemomma

I'm also here seeking info about being a landlord.
I pay $1075 per month mortgage and I can rent it out to grad students for $1400.

How much could you get renting it out to FACULTY or ADMIN STAFF?

The house is a little shabby but has newish appliances, newish roof, new HVAC and a new hot water heater.
Beyond your average household catastrophe there are no major repairs in the works.

Well, not before the two years are up.
Then you deal with the 'shabby' before selling or moving back in.

I have a good neighbor who...
How much should I pay him for this commitment?

Avoid the term 'property manager' and any sort of regular fee altogether.

Focus on finding solid tenants who won't need 'supervision'
who can be counted on to pay in full and on time and tend things generally.
How frequently during the two years will you have OTHER reason to be back in town?

Stick with "Uncle Ned down the block helps me out... call him if anything breaks".
If/when something occurs that really requires action/time... THEN do something nice for Ned.
Odds are nothing will IF you choose tenants well, charge fairly and don't raise rent until after two years.

If you have a nice yard... hire that work out.
Very few tenants of any sort can be relied upon to do more than bad mowing.

[WorldKlas]

Originally Posted by Stagemomma

i don't think I'm as naive as the OP but I'm also here seeking info about being a landlord.

I own a home in a hot hot hot university neighborhood. I have been offered a job 2 hours away and for a variety of reasons I don't want to sell the house just yet. I pay $1075 per month mortgage and I can rent it out to grad students for $1400. Maybe more if I'm lucky. The house is a little shabby but has newish appliances, newish roof, new HVAC and a new hot water heater. Beyond your average household catastrophe there are no major repairs in the works.

I have a good neighbor who is a general contractor and stay at home dad I think would be an awesome property manager. He would only have to troubleshoot when problems arise. I will arrange for yard maintenance, and regular exterminator visits. I don't need to make a profit...just make enough to cover home maintenance.

How much should I pay him for this commitment? A percentage of the rent? $100 a month? Ten percent? Twenty?

Since you will be residing only a couple of hours away, you shouldn’t need a property manager person. You should be able to handle most tenant questions via email/text and you should be able to drive there a few times a year to do a walk thru. Perhaps make an arrangement that you’ll pay your neighbor $50 any time you ask him to go over to the house for any reason and if there is a repair needed you’ll pay him separately for the repair.

Renting to students is something I’d not want to do, but if I did it I’d aim for grad students and limit it to as few people living in the house as possible. Most students do need a furnished place so if you are renting to undergrads, you may need to provide furniture. I’d also have any students get their parents as co-signers on the lease and only accept direct deposit payments to your bank account.

[Stagemomma]

Originally Posted by WorldKlas

Since you will be residing only a couple of hours away, you shouldn’t need a property manager person. You should be able to handle most tenant questions via email/text and you should be able to drive there a few times a year to do a walk thru. Perhaps make an arrangement that you’ll pay your neighbor $50 any time you ask him to go over to the house for any reason and if there is a repair needed you’ll pay him separately for the repair.

Renting to students is something I’d not want to do, but if I did it I’d aim for grad students and limit it to as few people living in the house as possible. Most students do need a furnished place so if you are renting to undergrads, you may need to provide furniture. I’d also have any students get their parents as co-signers on the lease and only accept direct deposit payments to your bank account.

Lord have mercy, no undergrads. This is a major university, not hard to find PhD or Grad couples. It's probably too shabby for an actual faculty member.

I've already gotten a nibble from a professional couple in my neighborhood who are interested. Golden. So I jacked up my asking price to 1500 and I may go up a bit more just in case.

I think offering to pay Mr. Neighbor $50 if he needs to come over sounds just fine. I would not need him to collect rent or anything like that. Isn't that what paypal is for?

[FIREin2016]

I just listed a property 2 days ago. Over 100 inquires already.

I have 24 renters, easy to manage myself.