Advice on renting out house? (renter, mortgage, houses)

[jjinla]

In deciding whether to sell our house or rent it out when/if we move, we have some questions.

Has anyone ever rented out their house and if so, how do you do it if you move out of the area? We're targeting 2+ deals for the international families, and our realtor said it is standard to collect one month rent as payment (which is $6000+...a lot for just listing a rental on the MLS IMO). What about management companies? Do they deal with everything else? Any other options for making it hassle free?

Craigslist doesn't seem like a good option since we are not targeting locals.

Thanks.

[jon-nyc]

I can't address your questions, though I'll pass along a tidbit or two that was passed to me from a Westchester renter. She told me that very few owners use craigslist, which she found frustrating and somewhat incomprehensible in this day and age.

She also said that the agents ask the renters for a month's rent as commission - not sure how that jives with you having to pay upfront - is the agent collecting from both sides or seeking reimbursement for the owner from the rentrer?

[jjinla]

Oh I get that people want to use CL, it's just that I don't want to rent to someone that wants a place to live for a year while they househunt, which is typically what NYC to Westchester people do.

International families want places for years while they are on assignment, and have a housing allowance. If you have a great house, that is the way you want to go as the cost of re-renting it every year (along with wear and tear) is incredible. Now, if I had an older run-down home (most of what I saw on CL when I looked) I would absolutely go that route. Everyone here wants the international bankers...housing allowance, respectable folks, etc. They don't go on CL.

I assumed as the owner I would have to pay the commission, but that works out to a lot of money for not much work. If she was managing it as well I'd happily pay but paying $6K to throw on the MLS seems steep at first glance. Wasn't sure if I was getting a fair deal or if that was negotiable. I mean, if I had a cheaper house they would do the same amount of work and make much less, right?

[jon-nyc]

Indeed, a multi-year renter spending someone else's money - what could be better? Although I wouldn't be surprised to find out that realtors talk that possibility up, then mostly bring you house shoppers from the city. But hopefully it'll all work out for you guys.

[jjinla]

Thanks, ideally we'll just sell outright but we're still torn as we don't want to leave anyway! Renting leaves open the option to come back, even though we really need to stop all of this moving around.

I think it depends on area. On our street alone, all of the renters are bankers, but our area is really popular with European families. Not that city people are bad at all...they just often want 1 yr. leases, which makes it too costly with realtor commissions and all.

[nonny]

We ended up renting our house in Westchester last summer. Our realtor told us that the downside of renting to interational families is that there is no way of seeking legal recourse if things go amiss. Most of the time, it's no trouble being a landlord. However, my tenants have come from a part of the country with newer houses and have made one mistake after another in the house. Even though they let it be known that they could spend a lot more than they are spending for our house, they have been very very rough on the house, and not respectful of the age of the house... They don't want workmen in the house, but nonstop complain about things. It can be stressful.

[jjinla]

Yeah, that is my fear, and why if it were up to me we'd just sell it outright! We have a newer home by Westchester standards but still, maintenance in this part of the country is overwhelming due to the severe weather variations.

[nonny]

But, on the other hand, living in Westchester is incredibly convenient. If you have a house that you love, or even like, and can afford, it's tough to imagine letting it go when rent can cover the mortgage and taxes, and you know that the prices have no place to go but up. It's an easy investment.

[jjinla]

No, I know...we will rent if we can't sell it and break even (we bought a year ago but did lots of renovations so who knows?) But then we'd be stuck renting on the other end since so much of our capital is tied up on this end, and oh boy do I hate renting! We could rent it over our costs and then some, though...rentals in this area are insane.

[jon-nyc]

Wow, I didn't realize you bought it only a year ago. I feel for you! I'm nearing my first move in 9 years, I'd hate to do it again the following year.