New to being a landlord - what haven't I thought about/considered?

[Anonymous]

Trust your gut instinct if you are remotely suspicious of anyone. Also, keep a mental note of the questions they ask during the tour. If they are asking unusual or annoying questions, they are probably not worth renting to. Also if they mention anything they want repaired, don't like, or want you to change during the tour, don't rent to them. They are probably not worth it. I made this mistake once and will never do it again. Any potential renter that requests changes before they even sign a lease will be a total PIA.

[Anonymous]

Thanks everyone - this is OP.

Given the desirability of the neighborhood, dearth of *quality* rentals in this town (and specifically this area), and particularly a dearth for young professionals/young families, I am confident we can find a good renter in short order. BUT we can easily afford the mortgage & fees even if it takes a little while to find them. It's mostly for this reason that I don't feel disincentivized from renting.

I think my greatest fear - as outlined in some PPs - is getting a problem renter. I will plan on thoroughly vetting and reading between the lines as we show the place etc. Also, yes, background check, credit check, and references.

Our new house is half a mile from the rental, and we'll plan on keeping an eye on things in addition to doing a thorough walkthrough when the renter moves in, and doing 6-month inspections.

I appreciate everyone's advice, thank you.

[Anonymous]

Having a property manager has been great for us and other landlords we know.

[Anonymous]

There are tax implications if you sell a house you’re using as a rental. I think you need to live in it for 2 of the last 5 years. So, try for a few years and if you think you might sell, check out the tax ramifications for waiting.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is OP: really that bad? We are NOT in DC - I would never do this in DC. It's a very landlord-friendly red state. I'm in a college town with an abysmal rental market for professionals, with a small house in a very desirable neighborhood/good school district.

Y'all are scaring me

No. And I’m a landlord in DC.

The most important thing is to screen your tenants thoroughly. Meet them and require an application (including income and rental history) and a small fee (shows interest/they’re not wasting your time). Full background checks, credit checks, require first month’s rent and deposit, etc etc. Look at the law in your state on what you may request and consider; every state/city is different.

Make updates/small improvements to your place BEFORE a tenant moves in. These are things like touch up painting, replacing light bulbs, considering replacing any appliance that seems like it’ll go soon, etc. It is easier to do all that without working around a tenant. And don’t cheap out; it’s better to do these things now instead of getting a call at 11pm that the fridge broke.

Know that stuff will break and that’s okay. Don’t get too attached. It’s a rental now. But treat it and your tenants with respect— fix things ASAP, keep big ticket items serviced regularly, and keep in touch with the tenants (but not too much). Don’t assume tenants (esp if they’re younger) to know anything about home maintenance. If you expect some, discuss and put it in the lease. Some tenants literally will not figure out how to replace a lightbulb even if one is provided for them, so have a plan for things like that in advance. This includes things like gutters etc. Deferred maintenance can lead to big problems like leaks so don’t just “forget” about your rental. Have someone on standby who you can call and send over about little and big home maintenance issues.

Price your place appropriately. Look at comps in the area and try to match them. In a good market, you should get interest within a few weeks; if you’re not, it’s either a dead time (what that means depends on the place, but generally mid-summer or mid-winter) or it’s too pricey.

Also, I’ve never found a property manager I like, fwiw. Some people really rely on them. But often they take quite a bit off the top and don’t earn it.

A fee is a sign of a seriously sketchy landlord... you may not be one, but you're just asking for trouble w/that... the kind of people you're going to attract are not good.

Always the armchair idiots chiming in with uselessness.

As a fellow highly successful landlord definitely have the fee. 1) it cuts back on BS applications and 2) it costs about $60-$150 to pay to run a background + credit check on tenants.

I used to rent and I never paid a fee, never would pay a fee and wouldn't let my kids rent from anyone who asks for a fee. I pay rent, you pay your expenses.

Your choice. I'll reject your application. Next.
I never had any problems finding good tenants. Applicants who are not willing to pay an application fee are more likely to default on rent payment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is OP: really that bad? We are NOT in DC - I would never do this in DC. It's a very landlord-friendly red state. I'm in a college town with an abysmal rental market for professionals, with a small house in a very desirable neighborhood/good school district.

Y'all are scaring me

No. And I’m a landlord in DC.

The most important thing is to screen your tenants thoroughly. Meet them and require an application (including income and rental history) and a small fee (shows interest/they’re not wasting your time). Full background checks, credit checks, require first month’s rent and deposit, etc etc. Look at the law in your state on what you may request and consider; every state/city is different.

Make updates/small improvements to your place BEFORE a tenant moves in. These are things like touch up painting, replacing light bulbs, considering replacing any appliance that seems like it’ll go soon, etc. It is easier to do all that without working around a tenant. And don’t cheap out; it’s better to do these things now instead of getting a call at 11pm that the fridge broke.

Know that stuff will break and that’s okay. Don’t get too attached. It’s a rental now. But treat it and your tenants with respect— fix things ASAP, keep big ticket items serviced regularly, and keep in touch with the tenants (but not too much). Don’t assume tenants (esp if they’re younger) to know anything about home maintenance. If you expect some, discuss and put it in the lease. Some tenants literally will not figure out how to replace a lightbulb even if one is provided for them, so have a plan for things like that in advance. This includes things like gutters etc. Deferred maintenance can lead to big problems like leaks so don’t just “forget” about your rental. Have someone on standby who you can call and send over about little and big home maintenance issues.

Price your place appropriately. Look at comps in the area and try to match them. In a good market, you should get interest within a few weeks; if you’re not, it’s either a dead time (what that means depends on the place, but generally mid-summer or mid-winter) or it’s too pricey.

Also, I’ve never found a property manager I like, fwiw. Some people really rely on them. But often they take quite a bit off the top and don’t earn it.

A fee is a sign of a seriously sketchy landlord... you may not be one, but you're just asking for trouble w/that... the kind of people you're going to attract are not good.

Always the armchair idiots chiming in with uselessness.

As a fellow highly successful landlord definitely have the fee. 1) it cuts back on BS applications and 2) it costs about $60-$150 to pay to run a background + credit check on tenants.

I used to rent and I never paid a fee, never would pay a fee and wouldn't let my kids rent from anyone who asks for a fee. I pay rent, you pay your expenses.

Your choice. I'll reject your application. Next.
I never had any problems finding good tenants. Applicants who are not willing to pay an application fee are more likely to default on rent payment.

ahhahahah

yes, people who let some sleazy pervert in his 50s "examine" their social media and give him $50 in cash "for background checks" are definitely much more willing to keep paying rent in your dumpy apartment.

[Anonymous]

Anonymous wrote:I have been a landlord for 15 years. 5 tenants during that time period across two units. 4/5 were fantastic tenants. The last one took 10 years off my life and I have stopped renting the property after finally getting her out. It’s great when it’s great and an absolute nightmare when it isn’t.

This. It can work out very well and be totally fine. Or you can have really bad tenants and not get paid rent for months on they end up destroying your home or you’ll end up in court trying to get them out. It’s really a gamble. When it’s bad it’s really really bad. I hope it’s good for you.