Fatman Posted June 8, 2009 Share Posted June 8, 2009 I'm going to be renting out my condo while I head back to school - I have an interested party and I anticipate that we'll get something agreed to over the next couple of weeks. I have a friend that is a real estate attorney who is providing me with a lease, as well as helping me establish an LLC to insulate myself personally should anything go wrong. Any advice? Quote Link to comment Share on other sites More sharing options...
fingfootball Posted June 8, 2009 Share Posted June 8, 2009 Do a video walk thru with your tenant before they move anything in. That way when they start jacking stuff up you will have them on video saying everything is in good shape when they moved in. Try to do a monthly walk thru so if they are messing your place up, you can try to do some damage control. Quote Link to comment Share on other sites More sharing options...
Big F'n Dave Posted June 8, 2009 Share Posted June 8, 2009 Try to do a monthly walk thru so if they are messing your place up, you can try to do some damage control. Good luck with that. When I was renting, I'd have told my landlord to suck it if he showed up monthly to snoop around. Quote Link to comment Share on other sites More sharing options...
fingfootball Posted June 8, 2009 Share Posted June 8, 2009 (edited) Good luck with that. When I was renting, I'd have told my landlord to suck it if he showed up monthly to snoop around. I put it in as part of the lease. I would give them 24 hours notice then check out the place. Broken windows or leaky pipes that go unaddressed can cost thousands in damage a year later. If a tenant wrecks your place and you sue them and win, good luck collecting on that money. Edited June 8, 2009 by fingfootball Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted June 8, 2009 Share Posted June 8, 2009 Any advice? Don't expect to make money if you have a mortgage. Mortgage + maint <= rent income - tax. If you can break even, that's about as good as it's gonna get. Quote Link to comment Share on other sites More sharing options...
Savage Beatings Posted June 8, 2009 Share Posted June 8, 2009 If you're going to be successful you'll need a good derogatory nickname for your renters to call you. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted June 8, 2009 Share Posted June 8, 2009 true, except that you can make a profit by selling in a year or two when the market doesn't suck as much. Plus, if you plan on moving back, it'll cost you a great deal more to sell and re-buy. making a profit all depends when he bought the place. if it was within the last 2y, he has a very small chance of any profit in the next 5-7 years. landlording isnt all that its cracked up to be. just be careful. make sure you get an airtight lease. 1.5mo/security deposit atleast. no pets. no smoking. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted June 8, 2009 Share Posted June 8, 2009 My advice would be don't become a land lord. Renters have all the rights. You have hell getting rid of a dead beat. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted June 8, 2009 Share Posted June 8, 2009 My advice would be don't become a land lord. Renters have all the rights. You have hell getting rid of a dead beat. in addition to a bag of cement down the toilet or dead fish in the return air ducts....... Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted June 8, 2009 Share Posted June 8, 2009 true, except that you can make a profit by selling in a year or two when the market doesn't suck as much. Plus, if you plan on moving back, it'll cost you a great deal more to sell and re-buy. My point was that single family property landlords can only expect to break even at best on the period they are renting it out for. I wasn't considering P&L before or after the rental period. Quote Link to comment Share on other sites More sharing options...
SheikYerbuti Posted June 8, 2009 Share Posted June 8, 2009 a bag of cement down the toilet Holy damn is that evil. I coulda used that one on a few landlords in my day. . . Quote Link to comment Share on other sites More sharing options...
Fatman Posted June 8, 2009 Author Share Posted June 8, 2009 true, except that you can make a profit by selling in a year or two when the market doesn't suck as much. Plus, if you plan on moving back, it'll cost you a great deal more to sell and re-buy. Yep, it's more about holding on to it for a year or two as opposed to becoming a for-profit landlord. Quote Link to comment Share on other sites More sharing options...
Square Posted June 8, 2009 Share Posted June 8, 2009 My advice is to stay cash heavy. Make sure you have enough money to front the mortgage and est. repairs for 6 months. People that get too thin go under (as we all know sh!% happens). I usually tell people to not rent a place just because they are living in it now. One way to think about it is... If you were at school would you take out a loan to buy this property and rent it out? If no, then I'd suggest selling the property. Everyone's situation is different in if you already made your mind up to rent it out than good luck (many people do this and end up fine). Just keep cash accessible so if you do get a crazy situation you have some time to try to deal with it. GL Quote Link to comment Share on other sites More sharing options...
Jackass Posted June 8, 2009 Share Posted June 8, 2009 One way to think about it is... If you were at school would you take out a loan to buy this property and rent it out? If no, then I'd suggest selling the property. what about the 5-6% commission? Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted June 8, 2009 Share Posted June 8, 2009 One other thing. Get a really good property management company to look after it for you. They will want paying, of course, but it both takes a load off you and also provides better oversight. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.