Have you ever rented out your home? - PeachParts Mercedes-Benz Forum

Jason Beal · #1 03-10-2004, 07:00 PM

I was considering renting out my home and buying another. Has anybody ever rented his or her home out? I have heard horror stories and I am a bit leery now. I have considered a 3-year lease option because the potential buyer would probably take care of it as their own. If anybody has any experience with this, I would love to hear it. I would like an income property, but if it were not worth the hassle, I would put my extra money somewhere else. Thanks for your input.

kerry · #2 03-10-2004, 08:13 PM

I'm a landlord. It has worked out well for me.
Ask your questions at: mrlandlord.com There's a question and answer board there.

Jason Beal · #3 03-10-2004, 08:20 PM

Thank you Kerry.

davidg · #4 03-10-2004, 11:15 PM

I own a rental house in another state and a realty/property management co. takes care of it for me . No problems, they vet the tenants, take care of plumbing problems, etc. for %10 of the rent.

Jason Beal · #5 03-11-2004, 01:12 AM

I'd have to use a realty co. because I'd be about 5 hours away in another state. I've done alot of work and I'd be worried that I'd get somebody who would trash the house. It's alot to think about.

kerry · #6 03-11-2004, 09:02 AM

If you're going to rent it out, you'll need to cut your emotional ties to the house. If you don't you'll be unhappy. You'll need to look at it as a business venture that does not have a lot of personal ties to your own being. It takes effort to adopt that point of view, but it can be done.
You also need to consider the rental market in your area. Rental of single family homes is becoming far more difficult. With interest rates being what they are, most people who can qualify for a mortgage for a home, have done so. The rental pool for single family homes is now filled with lots of people with credit problems. It is easier to rent units in multi-family buildings where the rent is lower than the mortgage for a house.

Jason Beal · #7 03-11-2004, 07:26 PM

I am able to cut my emotional ties to the home. Although I have lived in it for almost 3 years, I am able to look at it as an investment. What you said has crossed my mind too (interest rates and people buying homes). I am more worried about getting the wrong people in and having them trash the house and not pay the rent. I was considering a lease option because I figured the potential buyer would look at more as their home and take better care of it. I'm still not sure if I want to do it or not. Part of me wants to, the other part wants to cut and run.

kerry · #8 03-11-2004, 07:35 PM

Don't let your hesitations stop you until you have analyzed the market in your area. Make sure you have a thorough screeing process in place when you look for a tenant. Use a credit check and speak to at least two previous landlords before renting to anyone. Verify all statements in the application. Bad tenants can smell a new landlord.