renting to own

[ryoungs]

I have done a search of forums but can't find any posts where someone has tried the scheme I am considering. This suggests to me it is probably a stupid idea, but I would be interested in advice.

I am considering buying a three bedroom home in the Villages (none picked out yet) and, as a snowbird, renting it out long term. When my wife and I, or family members, decide to use the house for, say, 3 winter months, the renter would have the use of only one of the three bedrooms plus common areas, but at a greatly reduced rent (similar to an airbnb but at much less cost for the renter). At all other times the renter would have the entire home to use as he (she/they) sees fit, but at closer to normal rental prices (which, again, would be less than it might cost them otherwise)

I do realize it would have to be a perfect fit between the renter(s) and myself, but it sounds like a win-win for us both. It would be an ideal situation if I had a relative or a good friend who wanted to do it.

Comments?

[JSR22]

If I was renting I would not agree to have strangers living with me for 3 months.

[charlieo1126@gmail.com]

If a person is capable of paying full price rent on a 3 bedroom , he probably is not going to be interested in living with strangers for 3 months out of year, there are many people who rent a room from someone here mostly for financial reasons but some for company and are unlikely able or want to rent a 3 bedroom full rent for the other 9 months.I don’t understand why I even answered this but by doing so my mind is saying get up and get to gym it’s a football afternoon

[MrFlorida]

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[MrFlorida]

Sounds like a bad idea, I would not consider it.

[BigSteph]

I think this arrangement requires parties with a certain quality and personality -- that of which, I do not possess.

I get claustrophobic just having other homes this close to me, I couldn't imagine having these same random people within my home.

My nephew is 23 and just got his first apartment. He is paying more than his comfort level, but he was adamant that he would rather live more frugally alone than have more money and deal with a co-renter. I thought that was the most logical and adult comment this young man ever made to me -- finally he is growing up.

Again, I think it goes to your personality and risk tolerance. For me, my personality, risk aversion, and desire for some privacy, it ticks a CON on every line in the Pros/Cons checklist.

As to the 9/3 month arrangement, I think this complicates an already untenable situation.





I have done a search of forums but can't find any posts where someone has tried the scheme I am considering. This suggests to me it is probably a stupid idea, but I would be interested in advice.

I am considering buying a three bedroom home in the Villages (none picked out yet) and, as a snowbird, renting it out long term. When my wife and I, or family members, decide to use the house for, say, 3 winter months, the renter would have the use of only one of the three bedrooms plus common areas, but at a greatly reduced rent (similar to an airbnb but at much less cost for the renter). At all other times the renter would have the entire home to use as he (she/they) sees fit, but at closer to normal rental prices (which, again, would be less than it might cost them otherwise)

I do realize it would have to be a perfect fit between the renter(s) and myself, but it sounds like a win-win for us both. It would be an ideal situation if I had a relative or a good friend who wanted to do it.

Comments?

[Papa_lecki]

There’s a reason you haven’t heard of others doing this.

[Garywt]

Rent it or use it, anything else would be awkward. Our house is empty as I will not rent it out so I can show up anytime.

[davem4616]

IMHO, I can't possibly imagine any scenario where what you are suggesting would even be remotely attractive to any renter looking for a year-round situation in TV

[retiredguy123]

I agree with other posters. As some smart person once said:

"That idea is loonier than Loony Tunes".

[Djean1981]

Maybe rent out a bedroom (not your main one) with "house privileges" for the common areas, laundry, etc. It would bring in some funds and not set the tenant's expectation of having the entire house...

[Velvet]

What you could do since you only want to stay 3 months, rent from someone else for those months, and then you can rent out your property for the whole year.

[thelegges]

I wouldn’t let friends stay at my house for 3 months much less strangers

[BlueStarAirlines]

I couldn't imagine having a whole life then for three months my landlord lives with me and I have to remember the milk in the fridge isn't mine this month and I have to remind him that I buy the newspaper and its mine.

I think "scheme" is the correct word you used and no sane person would give this a second thought. I'm not sure what this says about me since I actually replied......

[thevillages2013]

I have done a search of forums but can't find any posts where someone has tried the scheme I am considering. This suggests to me it is probably a stupid idea, but I would be interested in advice.

I am considering buying a three bedroom home in the Villages (none picked out yet) and, as a snowbird, renting it out long term. When my wife and I, or family members, decide to use the house for, say, 3 winter months, the renter would have the use of only one of the three bedrooms plus common areas, but at a greatly reduced rent (similar to an airbnb but at much less cost for the renter). At all other times the renter would have the entire home to use as he (she/they) sees fit, but at closer to normal rental prices (which, again, would be less than it might cost them otherwise)

I do realize it would have to be a perfect fit between the renter(s) and myself, but it sounds like a win-win for us both. It would be an ideal situation if I had a relative or a good friend who wanted to do it.

Comments?
Sharing the common areas? I just have a vision of an old dude lounging around in his boxer shorts and wifebeater t-shirt sitting in your recliner and wanting to watch Gunsmoke reruns while you are there:bigbow:

[Papa_lecki]

I don’t know if I would want someone who agrees to this arrangement as a tenant

[Tuly914]

[There is so much to consider. Who is furnishing the home?. I might not like your furniture. If something breaks say appliances , who's responsible to repair or replace? Who carries the home /renters insurance? Who gets the garage to park their car when everyone is there? Are pets not allowed with renter,, but yet you have and tag along your pet.. I know if I was renting someone's house. I wouldn't want the landlord cramping my style for 3 months, no matter how much of a discount in rent. Two important people you should talk to is your home owner policy insurance company and your accountant. I personally think it's a bad idea, but that's me..
QUOTE=ryoungs;2034623]I have done a search of forums but can't find any posts where someone has tried the scheme I am considering. This suggests to me it is probably a stupid idea, but I would be interested in advice.

I am considering buying a three bedroom home in the Villages (none picked out yet) and, as a snowbird, renting it out long term. When my wife and I, or family members, decide to use the house for, say, 3 winter months, the renter would have the use of only one of the three bedrooms plus common areas, but at a greatly reduced rent (similar to an airbnb but at much less cost for the renter). At all other times the renter would have the entire home to use as he (she/they) sees fit, but at closer to normal rental prices (which, again, would be less than it might cost them otherwise)

I do realize it would have to be a perfect fit between the renter(s) and myself, but it sounds like a win-win for us both. It would be an ideal situation if I had a relative or a good friend who wanted to do it.

Comments?[/QUOTE]

[msilagy]

Hey what have you got to lose if someone is willing to do it - how about free rent for the renter for 3 months or a very very low fee, lower than AirBnB ? A courtyard villa with 3 bedrooms has a pocket door for the 2nd bedroom/bath so you would have privacy from that aspect while there.

[ThirdOfFive]

I have done a search of forums but can't find any posts where someone has tried the scheme I am considering. This suggests to me it is probably a stupid idea, but I would be interested in advice.

I am considering buying a three bedroom home in the Villages (none picked out yet) and, as a snowbird, renting it out long term. When my wife and I, or family members, decide to use the house for, say, 3 winter months, the renter would have the use of only one of the three bedrooms plus common areas, but at a greatly reduced rent (similar to an airbnb but at much less cost for the renter). At all other times the renter would have the entire home to use as he (she/they) sees fit, but at closer to normal rental prices (which, again, would be less than it might cost them otherwise)

I do realize it would have to be a perfect fit between the renter(s) and myself, but it sounds like a win-win for us both. It would be an ideal situation if I had a relative or a good friend who wanted to do it.

Comments?
Whoa! "Complicated" is an understatement.

What you are thinking of doing is basically a contract-for-deed, then getting a "perfect fit" renter family to pay the freight on that for at least nine months out of the year (three months "reduced rent"). The problems with this are #1: you wouldn't own the house so any arrangement like that would probably have to be OK'ed through the owner; #2: either looking for new renters if the original ones decided to leave (something that is quite likely if they're looking at sharing the home for three months out of every year); and 3: taking over the house full-time when you DO decide to become permanent Villagers. It's a three-way (four-way, counting the insurance, which is bound to be complicated as well) arrangement that sounds more like a minefield to me.

If you do go ahead with this, I'd strongly advise talking to a property-management company here in The Villages and talk to them about whether or not this is viable, and if they would manage the property (for a fee, of course) while you're absent. But to be honest there are just waaaaay too many potholes in this. I wouldn't do it.

[Luggage]

As many other people say oh, it's not really a great idea however, the best solution would be fine too oh, to have a business person who travels a lot he needs to be say in Asia for those 3 months every year, but if you can afford a whole house why not just rent something else is already or just buy it and suck up the money that you're not getting?, or a rental apartment, or the timeshares

[jimmy D]

Scheme or fantasy

[Petersweeney]

IMHO don’t buy a house you have to rent out unless your in the business … to many problems

[Jayhawk]

91697

[diva1]

That cannot possibly work in real life.

[Dasher0928]

I have done a search of forums but can't find any posts where someone has tried the scheme I am considering. This suggests to me it is probably a stupid idea, but I would be interested in advice.

I am considering buying a three bedroom home in the Villages (none picked out yet) and, as a snowbird, renting it out long term. When my wife and I, or family members, decide to use the house for, say, 3 winter months, the renter would have the use of only one of the three bedrooms plus common areas, but at a greatly reduced rent (similar to an airbnb but at much less cost for the renter). At all other times the renter would have the entire home to use as he (she/they) sees fit, but at closer to normal rental prices (which, again, would be less than it might cost them otherwise)

I do realize it would have to be a perfect fit between the renter(s) and myself, but it sounds like a win-win for us both. It would be an ideal situation if I had a relative or a good friend who wanted to do it.

Comments?

My husband and I did something similar before we down-sized in Michigan- renting out two rooms to two different renters (who ironically became good friends). We even started out as strangers- our renters were post college students with jobs, who had no credit history and did not know how long they would be in the area. It turned out to be a wonderful exerience for us, as well as them. We enjoyed a few foreign dishes and ocassionally shared our dinner with them as well.

Here was an important factor, they were "digital natives" and spent a great deal of time in their rooms on their devices. So outside of an occasional meal, we led pretty separate lives.

Good luck in your endeavor-if you find the right match, it could be a great thing!!

[lmack]

I have done a search of forums but can't find any posts where someone has tried the scheme I am considering. This suggests to me it is probably a stupid idea, but I would be interested in advice.

I am considering buying a three bedroom home in the Villages (none picked out yet) and, as a snowbird, renting it out long term. When my wife and I, or family members, decide to use the house for, say, 3 winter months, the renter would have the use of only one of the three bedrooms plus common areas, but at a greatly reduced rent (similar to an airbnb but at much less cost for the renter). At all other times the renter would have the entire home to use as he (she/they) sees fit, but at closer to normal rental prices (which, again, would be less than it might cost them otherwise)

I do realize it would have to be a perfect fit between the renter(s) and myself, but it sounds like a win-win for us both. It would be an ideal situation if I had a relative or a good friend who wanted to do it.

Comments?

Can I ask why you wish to do this? You say you only plan to be snowbirds so, are you trying to cover the cost of the home by renting? If so, you seem to be suggesting discounting might get you folks interested in sharing but (as others have said) sharing isn’t a great situation for most (even family can be hard to mix 24/7 for that long). It’s hard to share a kitchen, refrigerator and even the main television (which man would get to hold the clicker?).
I might suggest you just make it a regular short term rental. It should pay for itself but you may not be able to use it all 3 snowbird months as those are the highest rent months.
We purchased and rented before we retired and came when we could (around the renters). The house was set up for renters though, full use, empty closets, cleaned between renters, etc.

[JMintzer]

Sharing the common areas? I just have a vision of an old dude lounging around in his boxer shorts and wifebeater t-shirt sitting in your recliner and wanting to watch Gunsmoke reruns while you are there:bigbow:

https://c.tenor.com/b-Y4fK4A-JUAAAAC/thats-hot-hot.gif

[Papa_lecki]

91697

Good point, what do you do if there’s a legal dispute (i.e. not paying rent) and its the 3 months you want to be in YOUR home? Eviction is expensive and a long process.

[ryoungs]

HI. I am the original poster who started this thread. Most of you said it was not a great idea, and I am convinced by the logic of your comments. I already own a villa in The Villages, and when I got back to it recently after a summer away, it took days to clean it up from months of neglect. Thats why I had the idea of renting any new and more expensive home I bought to a caretaker while I am in the northland. At any rate, I thank you all for the good advice and, even more, I thank you all for the tone of your answers. From other posts I've seen on Talk of the Villages, often wise guys want to show how superior they are by posting smart-ass comments. None of you did that, and I appreciate it. :bigbow:

[kathietg]

I would never do this

[billthecpa]

You had best check out the IRS rules on mixed use property......renting it out part of the year.......and occupying it personally for part of the year....and, in this case, doing both simultaneously. Needless to say, the rent income you receive will be taxable....but, there are specific limitations and rules on what you may do....and NOT do with respect to deducting expenses

W.P. Bolash, CPA

[Indydealmaker]

I have done a search of forums but can't find any posts where someone has tried the scheme I am considering. This suggests to me it is probably a stupid idea, but I would be interested in advice.

I am considering buying a three bedroom home in the Villages (none picked out yet) and, as a snowbird, renting it out long term. When my wife and I, or family members, decide to use the house for, say, 3 winter months, the renter would have the use of only one of the three bedrooms plus common areas, but at a greatly reduced rent (similar to an airbnb but at much less cost for the renter). At all other times the renter would have the entire home to use as he (she/they) sees fit, but at closer to normal rental prices (which, again, would be less than it might cost them otherwise)

I do realize it would have to be a perfect fit between the renter(s) and myself, but it sounds like a win-win for us both. It would be an ideal situation if I had a relative or a good friend who wanted to do it.

Comments?

The IRS will love this.

[charmed59]

One way you could possibly do it is rent out a suite, bedroom and bath, in your house. No mention of whether you’ll be there or not. Rent would be the same year round. You could rent out the owner’s suite, or the two bedrooms with a bath that could be closed off for privacy in many floor plans. Use your furniture, except in their room/s. Then you could come down for a week here and there as well as your three weeks a year. Insure it as you would renting out a room.

I’d start this arrangement when you are living there. This would make your frequent absence as pleasant surprise, and the renter would be less likely to assume the whole house is theirs.

[nn0wheremann]

I have done a search of forums but can't find any posts where someone has tried the scheme I am considering. This suggests to me it is probably a stupid idea, but I would be interested in advice.

I am considering buying a three bedroom home in the Villages (none picked out yet) and, as a snowbird, renting it out long term. When my wife and I, or family members, decide to use the house for, say, 3 winter months, the renter would have the use of only one of the three bedrooms plus common areas, but at a greatly reduced rent (similar to an airbnb but at much less cost for the renter). At all other times the renter would have the entire home to use as he (she/they) sees fit, but at closer to normal rental prices (which, again, would be less than it might cost them otherwise)

I do realize it would have to be a perfect fit between the renter(s) and myself, but it sounds like a win-win for us both. It would be an ideal situation if I had a relative or a good friend who wanted to do it.

Comments?
One of my neighbors back north did something similar. He owned a house near Tampa that he rented out, with the provision that the tenant had to be out from December 15 to January 15. Mike and family used the place every year around Christmas to get out of the Chicago cold, and his tenant went elsewhere to visit kids for the holidays. This arrangement lasted at least 25 years.

[LG999]

I would not consider being either the owner or the tenant in this situation.

If I was the tenant I would absolutely not permit you & your to live with me. Even for free or even if you paid me to let you live w me

[DAVES]

I have done a search of forums but can't find any posts where someone has tried the scheme I am considering. This suggests to me it is probably a stupid idea, but I would be interested in advice.

I am considering buying a three bedroom home in the Villages (none picked out yet) and, as a snowbird, renting it out long term. When my wife and I, or family members, decide to use the house for, say, 3 winter months, the renter would have the use of only one of the three bedrooms plus common areas, but at a greatly reduced rent (similar to an airbnb but at much less cost for the renter). At all other times the renter would have the entire home to use as he (she/they) sees fit, but at closer to normal rental prices (which, again, would be less than it might cost them otherwise)

I do realize it would have to be a perfect fit between the renter(s) and myself, but it sounds like a win-win for us both. It would be an ideal situation if I had a relative or a good friend who wanted to do it.

Comments?

Like so many,"ideas," a truly simple way to understand the replies. Ask, would any sane person accept this offer?