Txwelder

Im having to PCS from Ga to Az and with the housing market the way it is, I would take a loss in selling my home right now. I have thought about renting but want to use a property manager to ensure it stays occupied and keep me from having too much of a headache. Anyone have any information about doing this in the past. Positive or negative experiences. Thanks in advance.

DmaxEter

I am considering the same thing. I would sell and could make a little money but nothing like I could have a couple years ago. I just want to rent it out and put a little extra coin in my pocket every month if possible. I also dont want to have to get a lawyer and fool with all that stuff. Come on guys, educate us on the subject!

rockwithjason

i know several people who are doing just that and doing well at it. rents are down here in vegas and in riverside where my brother lives so you have to be ware of what the real market value of your place is. the property manager usually charges ten percent of the rent to manage the place. look around and get references before you sign, a good manager is a god send and a bad one is a nightmare. you may also think of putting the property in an LLC to protect your other assets.

annabelle

Does or loan allow you to sub-lease or is it suppose to be your place of primary residence?

Raspy

Renting your place through a property manager is the only sensible way to go.

I have a rental house and had nothing but problems collecting and keeping the place up, etc. The property manager has straightened all that out and has found new renters quickly as tennants move out. He also evaluates what damage is beyond normal wear and tear and gets repairs made form the deposit money. I avoid the argument completely.

I pay 6% and it's well worth it!

From the renters point of view, they know they will get a contract and no problems from an erratic landlord. It's a very professional and no nonsense agreement.

I know I will get someone who is financially able and has a good credit rating. I don't have to advertise and interview. I don't have to hear the sob stories if there is a problem and if they have to be evicted I don't have to brush up on the law and take a bunch of time to figure it out. Deposits are taken and returned as required. I get a full financial statement every year. The agents also have people who can make repairs if needed so I don't have to hurry home from a trip to replace a water heater or garbage disposal.

It's also important to keep rents at full market value. This is because, if you come in below market, you'll atract the people that can't afford the place. They are not as stable and their problems become your problems. Renting to strangers is a business. Keep it that way and you will do fine. The property manager demonstrates that this is a professional, no nonsense transaction. It's good for all involved.

Don't trade work on the house for rent or agree to wait some time for the balance of the deposit. They either have the money or you don't want to rent to them and you definately don't want somebody that's broke working on your house for trade. No way.

Finally, you'll have to establish your policy on pets. I love dogs, and have three of them, but I don't want to replace chewed or scratched doors and ruined carpets in my rental house. If you do allow dogs, and I do, get a sizeable additional deposit to cover the damage you will see.

cLAYH

My sister is a real estate agent/property manager.

She has gotten pretty good at "reading" people and making up "politically correct" excuses for not renting to someone. Also has tough skin and has no problem evicting people when the don't pay and knows how to do it legally. Has never had to mind you as she just has lawyer send a letter and they usually smarten up and then don't get their lease renewed.

If I was renting out a place I live really close to I would manage it myself otherwise a property manager is the way to go.

Raspy

When buying a house and getting a loan, you always tell the lender that it is going to be your primary residence in order to get the best loan rate. If you change your mind and rent it later that's OK.

If someone is buying a house and has a mortgage they are not leasing it, they are buying it. So they won't be sub-leasing it to someone else if they rent it out. TX was talking about selling it vs renting it.

annabelle

Sorry ,I meant rent not lease.......my loan says I can't rent my property.........it stipulates that it must be my primary residence......what would be the liability if I did rent it out? Can they call your note?

Raspy

annabelle,

That's interesting. All the houses I've purchased were done under the notion that they were to be my primary residence. Even though I already owned one when I bought another. I would have to guess that the vast majority of rental properties have mortgages on them.

Does your mortgage say you can't rent it or does it just say it's your primary residence? Does it describe penalties for renting it out?

Loan companies would rather get the higher interest rates of loaning on an investment property, and I suppose the risk for them is higher if the owner does not live there, but it seems like the way it's done is to "intend" to live there and then change your mind.

Rednecktastic

The property manager who rented me my last place (who I actually date now strangly enough) said she got the first month's rent and 10%. But that was in a rough market and the owner was probably happy I was there.


I also totally agree with raspy and think he has a good insight from reading his posts here. If you keep it impersonal with the tenant they are much less likely to be a pain or consider tearing up the place.



What I would do is just stop by some busy looking real estate companies and ask them how much they charge for everything including maintenance and misc like court costs(incase there is a problem). I'd also ask how many units they manage so you know how popular they are which would tell you a lot right there really.

I know my old management company had a couple guys they had running around full time on their pay roll doing maintenance and for big jobs the company they use would be cutting them a good deal since they want to keep that steady work through them. So if you needed something like flooring or an AC done you personally are going to reap the benefit of their economies of scale and come out ahead.

DmaxEter

This is good info guys, thanks and keep it coming.

I will be living within 10 miles of my house if I do rent it and I do all my own upkeep and work so would I benifit from a property managment company or not?

Rednecktastic

Like I said that is probably one of the main benefits of a management company. A contractor getting work from them isn't going to charge much since they want to keep that account. So if you need something like an AC or new flooring you're gonna get a good deal on it.

Plus they have a guy on staff that takes calls on sunday and fixes leaky sinks and stuff. I know this because on Memorial day I got to hear "OH MY GOD WE HAVE A BROKE OVER FLOWING TOILET!" messages on my girl's cell phone over and over all day long (she manages property). When she finally got a guy to drive the 15 miles over there I kid you not the ONLY THING WRONG WAS THE CHAIN CAME OFF THE FLAPPER. They just didn't want themselves and their guests sticking their hands down into the back of the toilet to flush it manually . It literally messed up a couple hours of our day, what a pain!

annabelle

I'll need to check my loan papers. I do remember them making a point that I couldn't rent it out.

SoTexRattler

Check around and don't get a bad one.. They can leave you with a trashed house and you'll never know it until it's too late. My mom's house has a leased house next door rented via a Leasing Agent. In December I had to threaten the agent I'd call the owners out in California to get them to fix a huge water leak draining onto mom's property..
The tenants have had enough too. They are leaving for non-support over maint issues. The house used to be a really nice house but is really run-down now. I really feel badly for the owners as they are going to be in for a shock.
The leasing agency is operated out of a large nationwide realty office close by but that doesn't mean anything.
I guess what I'm saying is if you are going to be far away, get a good company with an excellent track-record even if you have to pay a bit more just to have the peace of mind they are doing things right.

Grit Dog

I think all primary residence loans say something to the same effect. I spoke with a real estate attorney before renting (leasing) out my house in AZ, that was originally my primary residence and he said once it's yours, you can do with it what you wish as long as you make your payments. Just need to make sure your insurance is set up for renters. Got basically the same story from my mortgage agent when I was looking to buy another "primary residence" to rent out.

As far as property managers go, I got reccomended a "good" one in AZ since I was moving and couldn't look over the place myself. THey didn't do squat for me! Collected their fee every month and that was it! I got numerous violations fromt he HOA for landscaping not being taken care of, etc. They "inspected" the house and returned all of the renter's deposit when they moved out. Still had to repaint the ENTIRE interior. Almost every wall was effed up (in 5 months!). Never could get all the dog p!ss smell out of the garage either!
Cost amost $1k to get the landscaping back in order too.
If you're hunting for a property manager, I'd find a way to get reccomendations from people that are using the mgmt companies, not realtors.