Soon To Be Landlord, any advice?

[unclejack]

Hello, I inherited a house last year and have been remodeling ever since! Almost done! I'm going to rent it in the near future and pretty much have no idea what I'm getting in to! Where does one get a rental contract? Or do you just make up your own and have them sign it? How does one go about determining general "wear and tear" on a house after a tenant has left? I almost wish their was an independent type person who would inspect it for me after a tenant has left. I'm quite particular and the house I'm about to rent has all new carpet, new siding, etc.. Any ideas, suggestions, advice? Thanks as always! Jack

[Gunguy45]

Every state has laws that landlords and tenants must follow. We have a couple of Property owners/Landlords on here, you'll get some Expert advice.
Here's a few sites I found....
Pennsylvania Tenant Landlord Law Security Deposit Evictions

Pennsylvania Landlord Tenant Law

LANDLORD ASSOCIATION.ORG - Landlord Tenant Laws for All 50 States Including Statutes and Other Resources - News, Information, Advice, Management Software and Tools for Landlords, Real Estate Investors, Property Owners and Managers.


When I rented a house I owned, I went to a Property Management company and let them handle everything. All I had to do was decide how much rent I wanted and what my restrictions would be (size and number of pets, requirements for cleaning/flea spraying upon vacating, etc etc etc.) Yes, I payed the company 10% of the rent...but it was a no hassle/no brainer for me...since I would be 3000 miles away. I also had no problems finding a renter since it was a nice house in a Military area with lots of transfers in and out.

[mitch17]

Lots of good stuff from gunguy. I'd like to add that rental property is active income, not passive. Either you put in a lot of time and effort or you pay someone to do it for you, which obviously decreases the cash flow. I think working with a manager for a while is good to do as a newb.

[Gunguy45]

I meant to add one thing...since you inherited this and are not paying a mortgage I presume. My thoughts would be to rent it with the least hassle to myself. Take probably a third of what it rents for and sock that away for repairs and maintenance. Take a third for yourself (or to pay off remodeling bills if required) and put a third in an investment.

Oh, and don't forget property taxes and insurance.

Might be a good thing to talk to a local investment counselor/attorney to find your tax liability and expectations over the years

[Bruce H]

The first year I had a rental property, I joined a state landlord association. They had a ton of information (including access to free legal advice for easy questions) and all the forms necessary to manage a rental property. It was well worth the membershhip fee.

There are 2 "rules" that I have found that I never break:

1. Put EVERYTHING in writing no matter how insignificant it may seem.
2. Do credit checks (including unlawful detainers) and criminal history checks, no exceptions.

Good luck with being a landlord, it's frustrating at times.

[chandler]

I have a weekend cabin rental here in the mountains. The longest "renter" is one or two weeks. I like that because I maintain control of the unit, and get to enter it between renters.
Unless you know your renters and are willing to put in a lot of work, or pay to have it done, it won't be pretty.
I have an uncle who owned 3 rental houses in a less-than-affluent section of Atlanta. His advice, now, would be RUN!
Also, what the others have already advised.

[unclejack]

Thanks all! I appreciate it! Jack

[feihin]

Hey Unclejack and all, I'm a little late to the party, but, here's my 2 cents.

1) Don't carpet, use Armstrong tile for .55 cents per at Lowes or HD. These are easy to maintain and last about 20 years with proper care. You can just machine them between tenants and they look brand new with gloss sealer. I did carpet as an "easy" flooring solution in the beginning and wow. You wouldn't believe the condition, didn't last a year.

2) Get over being "quite particular". Your tenants will ruin your hard work and that's just how it is. Use low cost common materials (in case you need a part or color match) that look as good as the high end ones. Paint all units the same color and charge the tenants if they change it.

3) Between tenants I get inspected by the Building Inspector and it costs 10.00 and is called a "rental recert". It says that the unit is in "new" condition and that there is no visible damage to anything. This helps if you end up in court.

4) Security,security, security. I take a month and a half min. By the time you get the bounced check back and the snow job and trying to catch up with your tenant a lot of time can pass. I've been beaten for 2 months rent easy a couple of times.

5) Get some local advice on tenant/landlord issues. In my area it's better for me if I don't use leases. It's easier for me to evict going month to month.

Great business and good income, but, you've got some learning to do and don't treat the rental as your own home. It's a business asset and you will charge for the damage to it. I formed a sep. corp to do renovations on the apt's because as the owner you can bill for the materials,but, not your time and effort to renovate it. I not always terribly upset when I don't have to return the whole security deposit!!!! Good luck and check your local laws!!!!!

[ecman51`]

How many bedrooms? The more bedrooms, the more likely you will be seeing rugrats. So much for renting the place to some single old lady.

[63amysue]

I have rented several homes since we move so much. We are good people and except for one time always have paid for the roof over our heads. The one exception was that I didn't tell the head office I was moving out that month in time and we had lost our income due to someone stealing our business. It was a bad scene beyond our control. Some people just have bad breaks in life due to others ignorance. Anyway we have always cared for the homes we lived in even though we had bad credit due to the business loss and an auto accident.
I know that's no excuse for the way some people run out and leave a mess and don't pay the rent. I just want you to know yes, "cover your back". Take all the precautions a landlord should. I agree do the back ground checks "because you don't know anyone till you live with them" is so true.
I do want you to know there are good, caring, paying on time people out there that do need a home and also have bad credit. Just be careful anyway. Best of luck!

[ecman51`]

Originally Posted by 63amysue

. I agree do the back ground checks "because you don't know anyone till you live with them" is so true.

But if it takes living with someone to know someone, then the backround check might not totally help. Right?

[tecate87]

When is going good its great. When you get a bad tenant its awful. I currently have one, 1st eviction I did in 15 years, non-payment of rent as well as smoking and pets in house as lease states neither. tenant wont leave. been 28 days now, his eviction notice is dated to be out by august 7. tenant still dont have to leave, I will have to get to Dist Mag to file papers to have a court date, anywhere from 7-12 days. Then if he is told to leave he is givin a min of 15 more days, so these tenants get close to 2 months rent FREE, and can do to the property as they desire. Get all in writing, if tenant seems questionable going in, avoid it. Its a hassle in my state. Each state is different but close to the same laws.

Good luck.

[ecman51`]

What gives the gov't the right for indigent tenants, who have nothing to their name, basically(like the proverbial 'trying to squeeze blood out of a turnip'), to live on your premises without paying? This is saying the gov't condones and actually participates in allowing your money to be stolen!!!!How do such laws get passed and by whom?

[nursepammi]

please read 'How to buy and Manage Rental Properties by Irene and Mike Milin.' They are experts in this.

it has been the best 14 bucks I'v spent in connection with becoming a landlord.

[joburns]

1). credit check: A mortgage friend should be able to do this free or minimal charge
2) references
3) I never take less than $1,000 deposit up front.
4) Electronic debit
5) A trick I have used if for some reason they can't come up with rent get a post dated check, let them know you understand and you will wait to hear when its good. Post Date laws don't exist put it in your account, let it bounce.
Then take the bad check to the prosecutting attorneys office. Anything over $250.00 is a fellony. After 2 weeks you can have them arrested and prosecuted or give them option to vacate without further hassle. I have done this more than once and it keeps the squaters from tying up your property.

[mattrich]

Start with a small house and gradually move on to the bigger ones. Review for yourself the landlord-tenant laws for your specific state. As you are newbie do not go for expensive utilities, give only limited facilities to your tenants e.g. a stove and refrigerator. Try to do the repairs of the rental unit yourself. Properly screen your applicants before renting out to them also run a credit check on your prospective tenants. Be aware of the condition of the rental property market read newspapers and magazines specially devoted to the real estate industry.
And to sum it up, I will suggest you to educate yourself and widen your support and make use of helpful services to increase your chances for real estate success. I will suggest you to join a local apartment owners association or a reputed national association like American Apartment Owners Association which has proved very effective and affordable for me.
All the Best.