Purchasing a townhome as a rental property. (Tampa, St. Augustine: short sales, renter)

[vml68]

I am considering purchasing a townhome in the South Tampa or Westchase area that I would live in for a few months while I become familiar with the area and look for a house that fits my needs. My plan is to rent out the townhome after I move into the new place. Does anyone here have any experience with this?

Is it too burdensome to deal with renting/managing a rental property? Anything I should be aware of/consider if I go this route?

Thanks.

[bentlebee]

Not at all if you know what you are doing as we are conducting property management on a daily base but be aware there are what we call "professional" tenants out there and that word is not a compliment!

Over the last week we denied applicants more than before due to lying on applications about evictions and convictions and proof of income not being able to be verified.

As a Landlord you need to know the law and/or how it is to be implemented otherwise you can be in for not a great experience as you may expect.

[Occifer]

If you do decide to do this, be very careful about getting a residential mortgage for the townhouse only to turn it into rental property in a few months. It could cause you problems with your mortgage.

[EngGirl]

Originally Posted by vml68

I am considering purchasing a townhome in the South Tampa or Westchase area that I would live in for a few months while I become familiar with the area and look for a house that fits my needs. My plan is to rent out the townhome after I move into the new place. Does anyone here have any experience with this?

Is it too burdensome to deal with renting/managing a rental property? Anything I should be aware of/consider if I go this route?

Thanks.

It's a headache. We have many....no.... MANY renters who didn't care about place they lived. One family managed to destroy the carpet on ground floor living there only for few months. Needless to say their deposit was not enough to replace the carpet.
I have a bunch of stories and most of them are pure nightmares. We managed our place though management companies (tried 3) and then decided to try ourselves. It was hard to find good renters.
I wouldn't go this route if I could, really.

[071402]

Originally Posted by EngGirl

It's a headache. We have many....no.... MANY renters who didn't care about place they lived. One family managed to destroy the carpet on ground floor living there only for few months. Needless to say their deposit was not enough to replace the carpet.
I have a bunch of stories and most of them are pure nightmares. We managed our place though management companies (tried 3) and then decided to try ourselves. It was hard to find good renters.
I wouldn't go this route if I could, really.

How many properties do you have?

Which area? So far (several years), we have not had this. Have been very lucky.

[EngGirl]

Originally Posted by 071402

How many properties do you have?

Which area? So far (several years), we have not had this. Have been very lucky.

2 properties - one in Wesley Chapel and one in St. Augustine. Both are zoned to all A-rated schools (8-10 out of 10), so it was not a cheap places anyone could afford.
There were some good looking families. My most frequent issue is the length of rent - they sign for a year and out way sooner. Or they lie about pets and by the time you learn about it, it's too late. Or number of people - family of four in really is family of 8... Destroyed kitchen cabinet by a dog, carpet by a cat, broken window, holes on the walls - it's just part of what we had to deal with.

[071402]

Originally Posted by EngGirl

2 properties - one in Wesley Chapel and one in St. Augustine. Both are zoned to all A-rated schools (8-10 out of 10), so it was not a cheap places anyone could afford.
There were some good looking families. My most frequent issue is the length of rent - they sign for a year and out way sooner. Or they lie about pets and by the time you learn about it, it's too late. Or number of people - family of four in really is family of 8... Destroyed kitchen cabinet by a dog, carpet by a cat, broken window, holes on the walls - it's just part of what we had to deal with.

Ugh. Don't they care about their deposit money? All those costly damages will come out of their deposits. Some landlords are now asking for 1 1/2 months deposit. Maybe you need to up it too. Sadly.

[clairegoad]

Be aware of Florida laws for evicting non paying or destructive tenants.... As I understand it, it is difficult, nearly impossible to get rid of someone who is maliciously using the system. Also if your legal tenant moves out, and a squatter moves in, you've got a long legal battle. So a local management company may be your best option.

You might look through the ads for places to rent, and see what management companies are doing a good job advertising. Obviously that is just part of the package...

Another thing to consider is the homestead law in Florida. I don't think you can have two residences covered by it... and there are significant tax advantages to consider. (I am not an attorney or accountant..)

[071402]

Originally Posted by clairegoad

Be aware of Florida laws for evicting non paying or destructive tenants.... As I understand it, it is difficult, nearly impossible to get rid of someone who is maliciously using the system. Also if your legal tenant moves out, and a squatter moves in, you've got a long legal battle. So a local management company may be your best option.

You might look through the ads for places to rent, and see what management companies are doing a good job advertising. Obviously that is just part of the package...

Another thing to consider is the homestead law in Florida. I don't think you can have two residences covered by it... and there are significant tax advantages to consider. (I am not an attorney or accountant..)

You sure about FL law and eviction? I've seen it happen a few times, read about it as well. Seemed NOT IMPOSSIBLE at all to remove non paying tenants.

[MortonR]

It's not, but it is a long drawn out process that favors the renter in many instances.

I know because we were working on a short sale that had a renter, and the owner lied about their "contract" (there was none) and giving them notice (they didn't.) They wanted us to go ahead and take the property and wait for the renter to be evicted. Right. The renter lawyered up five days before the third closing was scheduled and that pretty much put an end to the deal.

And did I mention that they told us (the buyers) that they wanted $5000 to move out or they wouldn't go for three months?

Ahhh, the joys of short sales…..

RM