Putting Our House Up For Rent - What Should We Know?

[Anonymous]

Anonymous wrote:

Anonymous wrote:To avoid personal liability you should transfer the property to an LLC. The problem then becomes how to refinance a property owned by an LLC. You will not be able to secure a residential mortgage but will instead have to go through the banks commercial loan department which will have higher rates, balloon payments and other less favorable terms.

I would personally not own rentals in DC due to the anti landlord stance of the city gov. I would sell and then invest the proceeds in a rental in MD or VA. Or buy stocks during the upcoming recession and then ride the wave back up.

Terrible advice in DC since this removes your ability to have a rent control exemption.

Which is more important? A rent control exemption or putting your entire net worth at risk when someone sues you? An umbrella policy doesn’t cut it. If you don’t want to be subject to rent control then take my previous advice to sell and reinvest somewhere other than DC.

[Anonymous]

Why do you want to be a landlord op? I’m asking this in all sincerity.

We rented out one of our previous houses.

First, the tennants can and will look you up if the property manager doesn’t do his or her job. I say this because it isn’t as simple as “you’ll never deal with the tennants”. It may have been that way once upon a time, but it sure wasn’t as of ten years ago.
Our property manager failed our tennants, and instead of contacting us to let us know they were not being served well (which they were not), the tennants threatened legal action… on Christmas Ev no less. My husband and I aren’t lawyers, and don’t like to fight. This wasn’t how we wanted to spend our time, energy and money, not when a simple phone call of “Do you realize what’s been going on over here” would have been all we needed to hear.

For those that would say “You should have kept an eye on the place” I’d agree with that, except that is exactly why we hired a property manager, one who came highly recommended by the agent that found the tennants.

Unless you love taking care of a house, you won’t enjoy caring for a house you don’t live in. It is stressful enough when you do live in the house, it feels like a waste of time and money, not to mention very stressful when you don’t see the bennifit of the new hot water heater, the functioning sink, the repaired dishwasher.

Our kitchen sink literally came off the wall this past weekend. We had it fixed within 48 hours by a reputable plumber, and I was thrilled to have a functioning kitchen sink.


As a woman/wife, it can be infurating to have your husband hop to it when the tennants call, yet argue with you about the performance or lack thereof of the washing machine. If you have a husband who thinks about money, it is sad to see your husband stressed about providing a good or service to someone other then your family. For example, we spent quite a bit of money on restoring the kitchen sink to functionality this week. I want to see a movie this weekend, and my husband told me we could so long as we didn’t go someplace expensive to eat later. I am fine with this because I have tangible evidence that the money that might have been spent on an expensive meal literally went into the comfort and ease of use of the family home.


Some tennants are wonderful, and some are not. Some will try and play one of you against the other… things like “My wife wants to stay home, we need a rent reduction” and in our marriage, my husband is the more soft-hearted. This means that I have to be the mean b***, a role I am ok with in terms of my kids, but a role that infuriates me when another adult makes me unleash that quality. My husband’s kind heart is wonderful in a marriage. It made me want to kill him when we were landlords together. It is difficult to treat someone as a beloved spouse when you have been arguing about whether or not you should accomidate a reduction in rent request, or if the tenant’s brother can move in “just for a little while”.


There are some renters who make a career out of scamming mom-and-pop landlords. They know you don’t have the time, desire, legal resources, or skill set to fight them. They will do everything possible so that you are glad they are gone and not pursue anything you may be entitled from a legal standpoint to obtain. Some tennants will ask things of you that they’d never ask of a WalMart worker, i.e. “I really need this $20 item, but my husband is unemployed, can I just give you $5 and you can be kind and accept the rest… um… later”. And yes, I know there are people who don’t pay their bills, all I am saying is that it feels very different when it is done at work, v. happening on your personal time when you may be having fun with your kids, enjoying time with your husband, reading a good book, whatever you do that makes you glad to get up in the morning.





I wouldn’t become landlords if you are a happily married couple. You want to spend your time, money and energy with each other and your children if you have them. Remember that owning a rental, even a home that you used to live in is a business. Many people cannot or don’t want to get into a business mind-set during their off hours.


If being landlords sounds at all appealing to you, take a real estate course. If you love it, maybe you’re on your way to a good career. If you can’t stand the thought of going to the course, or you think “I can just hire people” then this path is not right for you, at least not now.

[Anonymous]

The key is to find good tenants. We've rented out our first home for over ten years. We've only had one bad set of tenants. They lied about owning a dog and the dog did quite a bit of damage. They also broke their lease. We had gotten lazy with checking in on the house so that was partly our fault. Also, my experience has been that former home owners make the best tenants.

[Anonymous]

Anonymous wrote:The key is to find good tenants. We've rented out our first home for over ten years. We've only had one bad set of tenants. They lied about owning a dog and the dog did quite a bit of damage. They also broke their lease. We had gotten lazy with checking in on the house so that was partly our fault. Also, my experience has been that former home owners make the best tenants.

+1
Most people who have had problems as landlords did not find good tenants (or their property management company had no incentive to find good tenants).

We have rented our former residence to 4 different families over the last 9 years and we have never had a single problem. The key is that every one of our tenants fit the same profile -- senior military officer with a family.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The key is to find good tenants. We've rented out our first home for over ten years. We've only had one bad set of tenants. They lied about owning a dog and the dog did quite a bit of damage. They also broke their lease. We had gotten lazy with checking in on the house so that was partly our fault. Also, my experience has been that former home owners make the best tenants.

+1
Most people who have had problems as landlords did not find good tenants (or their property management company had no incentive to find good tenants).

We have rented our former residence to 4 different families over the last 9 years and we have never had a single problem. The key is that every one of our tenants fit the same profile -- senior military officer with a family.

OP is not likely to find a senior military officer with a family who wants to rent her 2-bedroom in Columbia Heights.

[Anonymous]

I have had section 8 tenants and rented to roommates
Both have not bothered to pay the final water bill when moving out
Both have left behind a large amount of trash, old discarded furniture
Both have overstayed their move out date by a few days

For section 8 tenants it is common for other people to move in unofficially

The rent subsidy is based on household income, so it is not uncommon for a brother or son to move in without hoc knowing

[Anonymous]

Anonymous wrote:Why do you want to be a landlord op? I’m asking this in all sincerity.

We rented out one of our previous houses.

First, the tennants can and will look you up if the property manager doesn’t do his or her job. I say this because it isn’t as simple as “you’ll never deal with the tennants”. It may have been that way once upon a time, but it sure wasn’t as of ten years ago.
Our property manager failed our tennants, and instead of contacting us to let us know they were not being served well (which they were not), the tennants threatened legal action… on Christmas Ev no less. My husband and I aren’t lawyers, and don’t like to fight. This wasn’t how we wanted to spend our time, energy and money, not when a simple phone call of “Do you realize what’s been going on over here” would have been all we needed to hear.

For those that would say “You should have kept an eye on the place” I’d agree with that, except that is exactly why we hired a property manager, one who came highly recommended by the agent that found the tennants.

Unless you love taking care of a house, you won’t enjoy caring for a house you don’t live in. It is stressful enough when you do live in the house, it feels like a waste of time and money, not to mention very stressful when you don’t see the bennifit of the new hot water heater, the functioning sink, the repaired dishwasher.

Our kitchen sink literally came off the wall this past weekend. We had it fixed within 48 hours by a reputable plumber, and I was thrilled to have a functioning kitchen sink.


As a woman/wife, it can be infurating to have your husband hop to it when the tennants call, yet argue with you about the performance or lack thereof of the washing machine. If you have a husband who thinks about money, it is sad to see your husband stressed about providing a good or service to someone other then your family. For example, we spent quite a bit of money on restoring the kitchen sink to functionality this week. I want to see a movie this weekend, and my husband told me we could so long as we didn’t go someplace expensive to eat later. I am fine with this because I have tangible evidence that the money that might have been spent on an expensive meal literally went into the comfort and ease of use of the family home.


Some tennants are wonderful, and some are not. Some will try and play one of you against the other… things like “My wife wants to stay home, we need a rent reduction” and in our marriage, my husband is the more soft-hearted. This means that I have to be the mean b***, a role I am ok with in terms of my kids, but a role that infuriates me when another adult makes me unleash that quality. My husband’s kind heart is wonderful in a marriage. It made me want to kill him when we were landlords together. It is difficult to treat someone as a beloved spouse when you have been arguing about whether or not you should accomidate a reduction in rent request, or if the tenant’s brother can move in “just for a little while”.


There are some renters who make a career out of scamming mom-and-pop landlords. They know you don’t have the time, desire, legal resources, or skill set to fight them. They will do everything possible so that you are glad they are gone and not pursue anything you may be entitled from a legal standpoint to obtain. Some tennants will ask things of you that they’d never ask of a WalMart worker, i.e. “I really need this $20 item, but my husband is unemployed, can I just give you $5 and you can be kind and accept the rest… um… later”. And yes, I know there are people who don’t pay their bills, all I am saying is that it feels very different when it is done at work, v. happening on your personal time when you may be having fun with your kids, enjoying time with your husband, reading a good book, whatever you do that makes you glad to get up in the morning.





I wouldn’t become landlords if you are a happily married couple. You want to spend your time, money and energy with each other and your children if you have them. Remember that owning a rental, even a home that you used to live in is a business. Many people cannot or don’t want to get into a business mind-set during their off hours.


If being landlords sounds at all appealing to you, take a real estate course. If you love it, maybe you’re on your way to a good career. If you can’t stand the thought of going to the course, or you think “I can just hire people” then this path is not right for you, at least not now.

Our main motivation to go the rental route is because with re-fi rates so low, the rent we could reasonably get would more than cover the mortgage - we are thinking this would be a nice way to build some wealth. Also, we wouldn't have to pay transaction costs of selling a house (agent fees, transfer and recordation tax, etc.) right now while we buy another place - this also sounds quite appealing. The house is newly renovated so there wouldn't be any major issues popping up, assuming we get the rights tenants that wouldn't wreck the place.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The key is to find good tenants. We've rented out our first home for over ten years. We've only had one bad set of tenants. They lied about owning a dog and the dog did quite a bit of damage. They also broke their lease. We had gotten lazy with checking in on the house so that was partly our fault. Also, my experience has been that former home owners make the best tenants.

+1
Most people who have had problems as landlords did not find good tenants (or their property management company had no incentive to find good tenants).

We have rented our former residence to 4 different families over the last 9 years and we have never had a single problem. The key is that every one of our tenants fit the same profile -- senior military officer with a family.

OP is not likely to find a senior military officer with a family who wants to rent her 2-bedroom in Columbia Heights.

If you can't find great tenants, then renting your property is a very bad idea.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why do you want to be a landlord op? I’m asking this in all sincerity.

We rented out one of our previous houses.

First, the tennants can and will look you up if the property manager doesn’t do his or her job. I say this because it isn’t as simple as “you’ll never deal with the tennants”. It may have been that way once upon a time, but it sure wasn’t as of ten years ago.
Our property manager failed our tennants, and instead of contacting us to let us know they were not being served well (which they were not), the tennants threatened legal action… on Christmas Ev no less. My husband and I aren’t lawyers, and don’t like to fight. This wasn’t how we wanted to spend our time, energy and money, not when a simple phone call of “Do you realize what’s been going on over here” would have been all we needed to hear.

For those that would say “You should have kept an eye on the place” I’d agree with that, except that is exactly why we hired a property manager, one who came highly recommended by the agent that found the tennants.

Unless you love taking care of a house, you won’t enjoy caring for a house you don’t live in. It is stressful enough when you do live in the house, it feels like a waste of time and money, not to mention very stressful when you don’t see the bennifit of the new hot water heater, the functioning sink, the repaired dishwasher.

Our kitchen sink literally came off the wall this past weekend. We had it fixed within 48 hours by a reputable plumber, and I was thrilled to have a functioning kitchen sink.


As a woman/wife, it can be infurating to have your husband hop to it when the tennants call, yet argue with you about the performance or lack thereof of the washing machine. If you have a husband who thinks about money, it is sad to see your husband stressed about providing a good or service to someone other then your family. For example, we spent quite a bit of money on restoring the kitchen sink to functionality this week. I want to see a movie this weekend, and my husband told me we could so long as we didn’t go someplace expensive to eat later. I am fine with this because I have tangible evidence that the money that might have been spent on an expensive meal literally went into the comfort and ease of use of the family home.


Some tennants are wonderful, and some are not. Some will try and play one of you against the other… things like “My wife wants to stay home, we need a rent reduction” and in our marriage, my husband is the more soft-hearted. This means that I have to be the mean b***, a role I am ok with in terms of my kids, but a role that infuriates me when another adult makes me unleash that quality. My husband’s kind heart is wonderful in a marriage. It made me want to kill him when we were landlords together. It is difficult to treat someone as a beloved spouse when you have been arguing about whether or not you should accomidate a reduction in rent request, or if the tenant’s brother can move in “just for a little while”.


There are some renters who make a career out of scamming mom-and-pop landlords. They know you don’t have the time, desire, legal resources, or skill set to fight them. They will do everything possible so that you are glad they are gone and not pursue anything you may be entitled from a legal standpoint to obtain. Some tennants will ask things of you that they’d never ask of a WalMart worker, i.e. “I really need this $20 item, but my husband is unemployed, can I just give you $5 and you can be kind and accept the rest… um… later”. And yes, I know there are people who don’t pay their bills, all I am saying is that it feels very different when it is done at work, v. happening on your personal time when you may be having fun with your kids, enjoying time with your husband, reading a good book, whatever you do that makes you glad to get up in the morning.





I wouldn’t become landlords if you are a happily married couple. You want to spend your time, money and energy with each other and your children if you have them. Remember that owning a rental, even a home that you used to live in is a business. Many people cannot or don’t want to get into a business mind-set during their off hours.


If being landlords sounds at all appealing to you, take a real estate course. If you love it, maybe you’re on your way to a good career. If you can’t stand the thought of going to the course, or you think “I can just hire people” then this path is not right for you, at least not now.

Our main motivation to go the rental route is because with re-fi rates so low, the rent we could reasonably get would more than cover the mortgage - we are thinking this would be a nice way to build some wealth. Also, we wouldn't have to pay transaction costs of selling a house (agent fees, transfer and recordation tax, etc.) right now while we buy another place - this also sounds quite appealing. The house is newly renovated so there wouldn't be any major issues popping up, assuming we get the rights tenants that wouldn't wreck the place.

Have you talked with your lender about your plan not to occupy the property? I bought a property as an investment and got a 5% loan with 25% down and a point. The loans are just not the same as if you're living there. Even now to refinance the best I've seen isn't worth it after the closing costs.

The rent doesn't just need to cover the mortgage--it needs to cover property taxes, insurance, maintenance, property management (if you hire someone), legal fees, advertising, and the months when the place is vacant but the mortgage is still due.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why do you want to be a landlord op? I’m asking this in all sincerity.

We rented out one of our previous houses.

First, the tennants can and will look you up if the property manager doesn’t do his or her job. I say this because it isn’t as simple as “you’ll never deal with the tennants”. It may have been that way once upon a time, but it sure wasn’t as of ten years ago.
Our property manager failed our tennants, and instead of contacting us to let us know they were not being served well (which they were not), the tennants threatened legal action… on Christmas Ev no less. My husband and I aren’t lawyers, and don’t like to fight. This wasn’t how we wanted to spend our time, energy and money, not when a simple phone call of “Do you realize what’s been going on over here” would have been all we needed to hear.

For those that would say “You should have kept an eye on the place” I’d agree with that, except that is exactly why we hired a property manager, one who came highly recommended by the agent that found the tennants.

Unless you love taking care of a house, you won’t enjoy caring for a house you don’t live in. It is stressful enough when you do live in the house, it feels like a waste of time and money, not to mention very stressful when you don’t see the bennifit of the new hot water heater, the functioning sink, the repaired dishwasher.

Our kitchen sink literally came off the wall this past weekend. We had it fixed within 48 hours by a reputable plumber, and I was thrilled to have a functioning kitchen sink.


As a woman/wife, it can be infurating to have your husband hop to it when the tennants call, yet argue with you about the performance or lack thereof of the washing machine. If you have a husband who thinks about money, it is sad to see your husband stressed about providing a good or service to someone other then your family. For example, we spent quite a bit of money on restoring the kitchen sink to functionality this week. I want to see a movie this weekend, and my husband told me we could so long as we didn’t go someplace expensive to eat later. I am fine with this because I have tangible evidence that the money that might have been spent on an expensive meal literally went into the comfort and ease of use of the family home.


Some tennants are wonderful, and some are not. Some will try and play one of you against the other… things like “My wife wants to stay home, we need a rent reduction” and in our marriage, my husband is the more soft-hearted. This means that I have to be the mean b***, a role I am ok with in terms of my kids, but a role that infuriates me when another adult makes me unleash that quality. My husband’s kind heart is wonderful in a marriage. It made me want to kill him when we were landlords together. It is difficult to treat someone as a beloved spouse when you have been arguing about whether or not you should accomidate a reduction in rent request, or if the tenant’s brother can move in “just for a little while”.


There are some renters who make a career out of scamming mom-and-pop landlords. They know you don’t have the time, desire, legal resources, or skill set to fight them. They will do everything possible so that you are glad they are gone and not pursue anything you may be entitled from a legal standpoint to obtain. Some tennants will ask things of you that they’d never ask of a WalMart worker, i.e. “I really need this $20 item, but my husband is unemployed, can I just give you $5 and you can be kind and accept the rest… um… later”. And yes, I know there are people who don’t pay their bills, all I am saying is that it feels very different when it is done at work, v. happening on your personal time when you may be having fun with your kids, enjoying time with your husband, reading a good book, whatever you do that makes you glad to get up in the morning.





I wouldn’t become landlords if you are a happily married couple. You want to spend your time, money and energy with each other and your children if you have them. Remember that owning a rental, even a home that you used to live in is a business. Many people cannot or don’t want to get into a business mind-set during their off hours.


If being landlords sounds at all appealing to you, take a real estate course. If you love it, maybe you’re on your way to a good career. If you can’t stand the thought of going to the course, or you think “I can just hire people” then this path is not right for you, at least not now.

Our main motivation to go the rental route is because with re-fi rates so low, the rent we could reasonably get would more than cover the mortgage - we are thinking this would be a nice way to build some wealth. Also, we wouldn't have to pay transaction costs of selling a house (agent fees, transfer and recordation tax, etc.) right now while we buy another place - this also sounds quite appealing. The house is newly renovated so there wouldn't be any major issues popping up, assuming we get the rights tenants that wouldn't wreck the place.

you still need to pay these and appraisal and title insurance when you refinance. They might get wrapped into your loan but they are still there.

[Anonymous]

Just my two cents:

It is not mostly Section 8 tenants that move in unauthorized add’l people.
Even people who do not receive housing assistance will move in another person and not let the landlord know.

[Anonymous]

Anonymous wrote:Just my two cents:

It is not mostly Section 8 tenants that move in unauthorized add’l people.
Even people who do not receive housing assistance will move in another person and not let the landlord know.

+1

[Anonymous]

+ a million. You'll get a 2 a.m. text from a concerned neighbor. IME, you are more likely to hear from a concerned neighbor than your property manager.

[Anonymous]

Anonymous wrote:We held on to a home and rented it out a home for a number of years. My advice:

1. Do not rent to "roommates", look for a family or working couple. Fewer problems.
2. Be prepared for surprises. The sink springs a leak, the doorknob is loose, etc. Renters rent because they do not want to do repairs. They want YOU to pay to fix it, ASAP. Contractors aren't cheap, and it comes out of the rent.
3. All renters are different. Some are easy going and some are...not. You repainted the walls in the color I wanted, but you missed a spot! Come fit it!
4. Use a middleman. Find a realtor who handles rental contracts, and is the contact for repairs, renter questions and collecting rent checks. You will never deal with the renter directly. It is so worth the cost.
5. Be prepared for uncertainty. If you are renting to create extra income, think again. See Tip #2. Anything can happen.
6. Insurance. You'll need to add renters insurance to your policy.
7. Landscaping. Your renter doesn't want to mow the lawn and pull up weeds, so who will? Don't piss off your neighbors by allowing your property to become the neighborhood eyesore.

I could go on, but you get the idea. Being a landlord isn't for the faint of heart.

Not renters insurance. Landlord insurance is what you need. Entirely different.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why do you want to be a landlord op? I?m asking this in all sincerity.

We rented out one of our previous houses.

First, the tennants can and will look you up if the property manager doesn?t do his or her job. I say this because it isn?t as simple as ?you?ll never deal with the tennants?. It may have been that way once upon a time, but it sure wasn?t as of ten years ago.
Our property manager failed our tennants, and instead of contacting us to let us know they were not being served well (which they were not), the tennants threatened legal action? on Christmas Ev no less. My husband and I aren?t lawyers, and don?t like to fight. This wasn?t how we wanted to spend our time, energy and money, not when a simple phone call of ?Do you realize what?s been going on over here? would have been all we needed to hear.

For those that would say ?You should have kept an eye on the place? I?d agree with that, except that is exactly why we hired a property manager, one who came highly recommended by the agent that found the tennants.

Unless you love taking care of a house, you won?t enjoy caring for a house you don?t live in. It is stressful enough when you do live in the house, it feels like a waste of time and money, not to mention very stressful when you don?t see the bennifit of the new hot water heater, the functioning sink, the repaired dishwasher.

Our kitchen sink literally came off the wall this past weekend. We had it fixed within 48 hours by a reputable plumber, and I was thrilled to have a functioning kitchen sink.


As a woman/wife, it can be infurating to have your husband hop to it when the tennants call, yet argue with you about the performance or lack thereof of the washing machine. If you have a husband who thinks about money, it is sad to see your husband stressed about providing a good or service to someone other then your family. For example, we spent quite a bit of money on restoring the kitchen sink to functionality this week. I want to see a movie this weekend, and my husband told me we could so long as we didn?t go someplace expensive to eat later. I am fine with this because I have tangible evidence that the money that might have been spent on an expensive meal literally went into the comfort and ease of use of the family home.


Some tennants are wonderful, and some are not. Some will try and play one of you against the other? things like ?My wife wants to stay home, we need a rent reduction? and in our marriage, my husband is the more soft-hearted. This means that I have to be the mean b***, a role I am ok with in terms of my kids, but a role that infuriates me when another adult makes me unleash that quality. My husband?s kind heart is wonderful in a marriage. It made me want to kill him when we were landlords together. It is difficult to treat someone as a beloved spouse when you have been arguing about whether or not you should accomidate a reduction in rent request, or if the tenant?s brother can move in ?just for a little while?.


There are some renters who make a career out of scamming mom-and-pop landlords. They know you don?t have the time, desire, legal resources, or skill set to fight them. They will do everything possible so that you are glad they are gone and not pursue anything you may be entitled from a legal standpoint to obtain. Some tennants will ask things of you that they?d never ask of a WalMart worker, i.e. ?I really need this $20 item, but my husband is unemployed, can I just give you $5 and you can be kind and accept the rest? um? later?. And yes, I know there are people who don?t pay their bills, all I am saying is that it feels very different when it is done at work, v. happening on your personal time when you may be having fun with your kids, enjoying time with your husband, reading a good book, whatever you do that makes you glad to get up in the morning.





I wouldn?t become landlords if you are a happily married couple. You want to spend your time, money and energy with each other and your children if you have them. Remember that owning a rental, even a home that you used to live in is a business. Many people cannot or don?t want to get into a business mind-set during their off hours.


If being landlords sounds at all appealing to you, take a real estate course. If you love it, maybe you?re on your way to a good career. If you can?t stand the thought of going to the course, or you think ?I can just hire people? then this path is not right for you, at least not now.

Our main motivation to go the rental route is because with re-fi rates so low, the rent we could reasonably get would more than cover the mortgage - we are thinking this would be a nice way to build some wealth. Also, we wouldn't have to pay transaction costs of selling a house (agent fees, transfer and recordation tax, etc.) right now while we buy another place - this also sounds quite appealing. The house is newly renovated so there wouldn't be any major issues popping up, assuming we get the rights tenants that wouldn't wreck the place.

You think it is a nice way to build wealth? Oh dear.