Advice on becoming a landlord

[cyprant]

We are considering renting our home out when we buy our next home instead of selling. Any advice from anyone with experience with this?

 

[Que]

Hire an agent to take care of it. Some renters are a total headache and the 5-10% a month is worth it to get someone to handle it for you. Just make sure the agent isn't a jerk, though.

 

[GodFearinGunTotin]

I've got friends that have rental property. Whenever I've talked to them about it, the single most important thing they said that made the difference between it becoming another job and not was to get references and actually check up on them.

 

[Trigger Time]

Don't do it. That's my experienced advice. Others of coarse will have had their own experiences. Indiana laws are set up to **** the landlord

 

[mbills2223]

Don't rent to family or friends

 

[GodFearinGunTotin]

Don't rent to family or friends

Oh, that's real good advice. Really.

 

[Mr Evilwrench]

My mom had some rental property way back. She doesn't any more. Tells me something. Talk to 88GT, she's an inveterate rental property owner. She should be all clueful.

 

[Trigger Time]

Make sure you have a very specific contract and it's signed by all parties. All the people living in that residence!!! And make sure no one else moves in without your express written consent. If they live there you have to go through the same eviction process as the renters

 

[cyprant]

Good advice here, thank you, keep it coming!

 

[remauto1187]

Only rent to well developed blondes that are atleast 5'10" and NEVER EVER let the wife meet any of your tenants!

 

[chuckp]

Don't have one so far away you can not check up or fix it in a timely manner . Remember its business and your not in the charity business. Once they take advantage of you they will never stop.

chuck

 

[BigBoxaJunk]

I've got friends that have rental property. Whenever I've talked to them about it, the single most important thing they said that made the difference between it becoming another job and not was to get references and actually check up on them.

^^^^^^^^^This, you will prevent some headaches with a careful vetting process.

 

[churchmouse]

Specific contract. If you do not want pets put it in writing. If you do not want smokers, put it in writing. List what you will cover as to Maint. I say this as I have had tenants that felt I should do all the light bulbs and mow the grass. Take digital picks of the place before you rent. Take the same pics when it is vacated by the tenants. Documentation.
1 big thing is number of people living in the house. Specify who can "Live" there. Guests are one thing. Folks moving all their friends in is another. Wear and tear on the house goes up with the number of occupants.
List everything with in reason.

 

[spec4]

Lots of problem potential and IMO not enough reward. A bad apple can cost you thousands to get rid of not to mention time. I prefer to put my money in various bonds and mutual funds. So far I've haven't had to try and evict a mutual fund!

 

[dirtfarmerz]

You must have reasons for thinking about renting your home. If those reasons are not significant and you can make a profit on your existing home, sell it and put the money down on the new home. The borrower is a slave to the lender. Paying off debt is better. I've had only two rentals and it won't happen again. Like a few folks have mentioned, a specific contract and picking decent renters are very important. The bad renters that will take advantage of you are probably very good at cheating the system; they'll know what they can get away with. The profit you are expecting to make can be lost. If your budget will be tight after purchasing your next home, you will not fare well after a bad renter or two.

 

[churchmouse]

The profits if any are subject to taxes. The house will have to be covered by insurance and that policy will be spendy as Insurance companys understand rental property. If you are not living in the house the coverage will be different. Renters will not usually have insurance. Also property taxes and such figure into this.

I would say sell it and take the money up front.

 

[femurphy77]

Don't do it. That's my experienced advice. Others of coarse will have had their own experiences. Indiana laws are set up to **** the landlord

THIS X10!!! Tried it awhile, huge waste of money and time. The only upside was that the house didn't sit empty for that period of time. The ex "rented" it to a friend that "needed a hand getting back on her feet". Didn't pay a dimes rent, teenage daughters destroyed the walls with every teen heart throb poster of the era and disappeared one weekend only to call us to tell us they had bought a house in a very expensive neighborhood. Never offered to lift a finger making repairs and that was supposedly part of the "agreement".

Then rented it out to a g.i. who was then promptly shipped out leaving wifey to ply her "trade". Big scene when hubbie got some unexpected leave, I had to literally gut the house to repair it this time. Great tax write off though.

I've got a buddie in Indy that has several and he is constantly in small claims court getting people kicked out, getting judgment's with no way of enforcing them etc. Once they're in you have no more rights to the property and in his price ranges the tenants all know how to game the system to their advantage. He's waiting for the Feurgeson verdict to come in 'cause he's hoping that most of his rentals get torched.

 

[poptab]

renters are a pain in the ass and don't know how to have nice things.

 

[planedriver]

Three words...... DON"T DO IT.

At one point had 14 single family and one, 14 unit building. I won't bore you with the list about why not to do it. If you want to keep your sanity and not own a wreck that was nice at one time. You'll not do it.

 

[CathyInBlue]

How do motels/hotels work? Can't they kick you out the instant your paid for time is up?