New Landlord-to-be of DC Condo -Please Help a Novice Out
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Anonymous
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Hello,
I am moving overseas for work for two years and renting my condo out until my return. I know that I need a property manager and a Basic Business License (BBL), but what else? I am trying my best to find a tenant before I leave in two weeks. I make 70K a year, so losing a month's rent for something that I can do myself (find a tenant) is a steep price to pay. I listed my place on CL and have some good leads so far. I also just listed on Zillow, AHRN, and Militarybyowner.com. I will be packed out of here within the next week and plan to have the walls and carpets painted and replaced next weekend. What am I missing that's important to consider? Any property management recs for a small condo? What's considered a good price/monthly fee for a property mgr? Also, which websites are good for running background and credit checks? Am I better off going through the property manager to draw up a lease or DIY? Ideally, I'd like to have a good tenant selected even if they don't move in until later this month/early August and just pass the torch to the property manager thereafter? Also, for the DC inspection, is it fairly easy to pass? Thanks in advance for any suggestions! |
Anonymous
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Good info at website of the national assn of independent landlords, including their offer (with membership) to run a credit check. There's also a free application form to use for prospective tenants.
Property managers usually charge a percentage of each month's rent for their service, and a hefty one month's rent for finding a tenant. Not sure what inspection you mean. Good luck. |
Anonymous
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We paid our property manager 8% of the monthly rent + 75% of the first month's rent. When hiring a management company, keep in mind that the prices they quote you initially tend to be negotiable. (i.e. if they quote you higher than 8%; 75%, see if you can get them down.)
I do not have a recommendation for a property management company; ours was pretty bad (I will not say who they are, but I would recommend avoiding a company located on T street near Dupont.) They overcharged us for various repairs and raised the rent for our tenants without telling us (!). For what it's worth, you do not need to hire a management company to rent out an apartment, though it may make things easier if you are overseas. You need a "DC agent", which simply means someone that DC can send mail to (or a summons to) if need be. After several years of agonizing over our crappy management company, we ended our contract with them and signed up a DC-based relative as our agent. As for the inspection, ours was pretty smooth. If you DO hire a management company, they a can offer advice on what you will need to do to pass it. (i.e. fire extinguisher; cut offs on electrical sockets in the kitchen.) I have no advice regarding leases as our management company did that for us. But if you do it yourself, definitely check credit. Good luck!!! |
Anonymous
| Don't only check credit though, call previous landlords. DC laws are absurdly pro-tenant, and there are professional tenants out there looking to take advantage of you. |
Anonymous
| read the DC Tenant's Survival guide put out by georgetown law school. Just because you hire a property mgr doesn't mean they know the law (though they should!) and it's good to educate yourself. Make sure you file for an exemption from rent control if needed. And make sure you stop claiming the homestead exemption and that you let your insurance and mortgage companies know you're renting the place out. Some homeowner's insurance policies can be voided if you rent without telling them, and some mortgages can be called for the same reason. It might cost you more in the short term, but dishonesty can lead to some bad outcomes. |
Anonymous
| Thanks for the the tips! |
Anonymous
| You should focus on getting through the DCRA approval process if you haven't already. That will take longer than you expect. |
Anonymous
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I did this. Moved to Europe, rented out my condo. I did it all from abroad, for 10 years. Some tenants I never even met. I had my parents (who live nearby) do the key handover/inspection, and the rest was done over email. Didn't use a mgmt company. In a condo, there is not much to break. I gave tenants a list with my preferred vendor for each problem (plumbing, hvac, etc) and said they can call and get it done, thne email me the receipt and take it out of next month's rent.
Use CL to get tenants. I used AmerUsa to verify credit. I don't even have the business license, and I think few do, though technically you need it. Your condo assn' will have the occupancy permit, and you send that along with your fee to DC. I also have a rental in MD where I do have it "registered" and they just email me a bill once a year. |
Anonymous
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bfmpropertymanagement@gmail.com. They charge 5%.
They just helped out a friend in Woodbridge who moved out of the country. |
Anonymous
I filed and received the BBL on Monday, condo passed inspection on Thursday. I was warned by property managers I interviewed that the inspectors usually fail everyone initially, but my inspection was all of 5 mins. I was told that condos are usually pretty easy. I have a property manager now. Her rate is 8% per month, plus 50% of first month's rent. |
Anonymous
| I meant to add in previous post that I'm the OP. |
Anonymous
Who's your property manager? |
Anonymous
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Rentjiffy.com to handle rental status/inspection in DC. Saves hours of standing in line and they track due dates on periodic renewals so you don't have to.
Erenter.com for background and credit checks. They provide an easy standard application that you can use to collect vital info (including contact info to confirm employment/former landlords/personal references) |
Anonymous
I manage several family-owned properties and I've had the same experience with the BBL process - no big deal, especially for condos. You sound like you have it all set, but keep in mind that if you turn out to be unhappy with your property manager you can do this from overseas yourself. Most of my communication with my tenants is via email and I can go for several months without hearing from them about an issue. If you've left your condo in good shape then you shouldn't have too many problems. If you do run into an issue the internet is your friend - just find a vendor. Even better would be to give the names of your preferred vendors to the renters prior to them leaving. As for the rent you can set up a direct deposit with your bank for a nominal monthly fee. It would be much less than what you are paying a property manager. Another thing to keep in mind is that the security deposit needs to be kept in a separate bank account since it is technically the tenant's money. Your bank will set up a sub-account with your account. Your property manager may handle it through her own account, but you should make sure this is done separately - not worth getting on the bad side of the DRCA... Also, check with your condo association about any rules & regulations regarding renters. Some will simply require that they have the name & contact info for the renter while others will want a copy of the lease. |
Anonymous
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Thanks, PP, great info! I probably would've self-managed if I'd had more time to get my affairs in order. I just had an open house this weekend and have a few potential tenants who are/have applied and that was on my own. It was sort of impromptu, as I received several responses from the Zillow, CL, and AHRN ads this weekend.
I have alerted the condo board and they have been surprisingly helpful. To the person who asked, I used Karissa Leake (202-450-5333) of Gibraltar Housing. |