I live, write, and garden in the PNW with my husband of 28 years, disabled daughter, adult son, and my 84-year-old mother. We have paid off $250,000.00 worth of debt (if you include the interest) in the last fifteen years and as of 6/12/2020 are 100% DEBT FREE!!!!One of the workmen broached the subject today that he would like to rent the old house for $1000 a month. I know he's got steady and gainful employment and he's one of these people that can basically do anything when it comes to home repair.
But it's landlording and all I ever hear about that are horror stories. I've been researching and so far what I've found is that you need to:
1. Get all the basic info from the prosepective tennant to run checks.
--most recent address
--social security number
--date of birth
--list of previous landlords and phone numbers
--references
2. Check the local clerk of courts criminal and civil database
3. Check the state department of corrections database
4. Run a credit check
5. Veryify income (check stubs or bank statement)
It would cost us approximately $162 a month to continue paying HoA dues out there and to keep the security system monitoring device on and to get landlord's insurance.
The renter would take over paying the power, water/sewer, electricity, propane and phone bills and pay for any other utilities they needed or wanted like garbage pickup, internet, or cable. Taking over those utilities would save us $278 a month.
By having renters in there, if all went well, we would have $1116 a month coming in as opposed to letting it just sit there. But that's assuming all goes well. Also they might want to least to buy.
I still would need to look into the tax implications as well.
Plus, I just don't know. I don't want to have to deal with things if stuff goes wrong. DH is gone too much and I don't want to be running out there in the middle of the night if a pipe bursts or whatever.
Does anyone have any good experiences with renting a house? Or is it always just a bad idea? There would be no pets, no children, and no smoking in the home.
I am just really worried that it's not going to sell in this market. But at the same time, we won't know until we try to sell it.
Is Becoming a Landlord Ever a Good Idea?
August 6th, 2012 at 01:15 am
August 6th, 2012 at 01:57 am 1344218249
August 6th, 2012 at 02:11 am 1344219092
There is always some level of risk in being a landlord. Only you can decide whether you're willing to give it time. What is being charged for house rentals in your community? It's important to check references,current landlord, employer ask if he would be willing to give you a hard copy of his credit check since he can get it at no cost from one of the agencies. Alternatively, can you ask your banker to facilitate? Is he married? Does his wife work? Children?
The income, less expense is taxable but you have a great deal of expense to charge against the income generated from the house. There is always a refundable damage deposit required on move-in day. Since the tenant is handy, you can write a lease that requires him to notify you of any problem and that he will take the agreed upon action and confirm it's been carried out. The lease must be specific and cover details including eviction should that be necessary.
August 6th, 2012 at 02:28 am 1344220130
Landlords have specific skills that enable them to be on the good side of risk and reward. At the very least they have to have the energy to be proactive, have contacts in case things go south, and tend to read people well. The one thing that would be counter-indicated for someone is having a lot of other irons in the fire.
I think you'll have to add the "for you?" at the end of your question.
August 6th, 2012 at 02:30 am 1344220250
You haven't mentioned how long the house has been vacant and annual cost of assessed tax, utilities, insurance and maintenance. When rented house insurance premiums are modified. $278.x 12 = $ 3,336. + property tax are drained from income. What is the age of the structure, do you anticipate a new roof, updated plumbing or heating systems in the next2-3 yrs?
August 6th, 2012 at 12:27 pm 1344256050