Leasing your old home

[SukiChu]

We close on our Fernandina home in mid-September. We do not have our house here in Illinois listed with a realtor yet but have an appointment on 8/4. We have been approached to lease our home here to a very nice couple (with secure jobs). Since we have never leased before - or rented - our home, we are a bit leary since we will be so far away. Houses are not moving much here, and I think we should jump at the chance to lease. Husband feels a little differently. Doing so would enable us to move to The Villages a little sooner. Any advice from the experts out there (that is all of you...!)?

[asianthree]

many people in the same boat..if you have someone who wants to lease i would go for it..if it gets you to TV faster its worth it and maybe they just might buy it in the end

[hotrodgirl]

I also have a house in IL that I now have had 2 contracts on, both of which have fallen through. Financing problems. The market is picking up here quite a bit, but is also unstable. While it may be better to try to sell, I can also tell you that I have an investment property in Florida which I have rented out for the last 30 years. One of my renters has stayed for 7 years, another for 5 and several for 3 years. Only once in all that time have I had a real problem with any lessee, and terminated their lease. I think with the market the way it is, if you can afford to do so, you may be better off renting it for a few years and then selling at a higher price. Just my opinion....

[jimbo2012]

We are renting because of the low $$ market sales, I would need to take over 100K if I want to sell now.

We are showing to renters now, finding the right people is the key.

[buggyone]

Renting is a big risk anywhere. You have to get renters with 100% good credit to ensure payments. They can skip anytime and you will have a hard time finding them.

Hard to say but it is sometimes better to be paying 2 mortgages than to have a renter skip town owing not only you but all the utilities as well.

[hotrodgirl]

I always collect first, last and security. So I am holding 2 extra months rent at any given time until the last month of the lease. I also run a credit check and background check. The one renter I had a problem with had nothing to do with money, rather with late night parties! I terminated the lease at 4 months and kept the security ddposit in it's entirety. Other than that I have always had very good renters who have taken care of the house as if it were their own.

[CaptJohn]

Get good rental histories from them and check them out with the prior landlords. I've rented out houses for 40 years off and on and some of the nicest prospects were the ones that fooled me and I'm a pretty good judge of people.
I have had both bad and good experiences.

[jackz]

We have had a rental home in California for many years.

My advice is to employ a good management company with excellent references to manage the property.

Our Mgt Company charges $250 to put someone in the home and conducts credit checks, contacts prior rental references and does a criminal history check on prospective tenants.

The Mgt Company charges 8% per month from the rents for their fees. They also video tape the inside and outside of the home prior to the tenant moving in and have the tenants certify that it is a true reflection. When the tenant vacates they can use the video should there be any disagreement as to damages. Also a security deposit is required.

Moving often throughout the world, we have found that we did not want to be involved in the day to day issues with tenants and are pleased that we have an outstanding management company taking care of our investment.

Good luck.

[Posh 08]

We have had a rental home in California for many years.

My advice is to employ a good management company with excellent references to manage the property.

Our Mgt Company charges $250 to put someone in the home and conducts credit checks, contacts prior rental references and does a criminal history check on prospective tenants.

The Mgt Company charges 8% per month from the rents for their fees. They also video tape the inside and outside of the home prior to the tenant moving in and have the tenants certify that it is a true reflection. When the tenant vacates they can use the video should there be any disagreement as to damages. Also a security deposit is required.

Moving often throughout the world, we have found that we did not want to be involved in the day to day issues with tenants and are pleased that we have an outstanding management company taking care of our investment.

Good luck.

This is the only way to go IMO.

[Posh 08]

Or consider having the rent to own option for renters. They leave, they lose.

[senior citizen]

We close on our Fernandina home in mid-September. We do not have our house here in Illinois listed with a realtor yet but have an appointment on 8/4. We have been approached to lease our home here to a very nice couple (with secure jobs). Since we have never leased before - or rented - our home, we are a bit leary since we will be so far away. Houses are not moving much here, and I think we should jump at the chance to lease. Husband feels a little differently. Doing so would enable us to move to The Villages a little sooner. Any advice from the experts out there (that is all of you...!)?

This may not be a popular answer but it is a sensible and smart one if you value your older home in Illinois to any degree..........

I would lease it for one year at a time, to begin with.
You would always have it to return to.............

Our adult children had to rent out three of their homes and it all worked out well (while they are in other newly purchased homes).......

For ourselves, we SOLD two homes (in different decades) in the same neighborhood..........same town we returned to after renting a home on Florida's East Coast for one year.........and purchasing a beach front condo on the Gulf Coast........both times, we returned to our same old neighborhood, buying two more houses...........wishing we had NOT sold our other homes.

In both of the homes we sold, we had added on additions, great rooms, high end features, that we wish we had back, inground olympic sized pools.......then bought again in same neighborhood which always drew us back like a magnet......so if you LOVED your neighborhood but are just craving a nice retirement spot, do not sell it immediately.........before you wish you could return.

You may never want to return. We were a lot YOUNGER back then.......it's different when you are older and cannot tolerate the cold, snow, damp any longer.

BEST WISHES for a good outcome. Nothing is selling in Vermont either.

[gomoho]

and no one has mentioned what an excellent tax advantage renting a home gives you

[jimbo2012]

The only downside in NY for sure is if they don't pay it takes 2-3 months to evict.

So the security deposit is gone into the negative.

Any money judgement is likely worthless.

We tried asking for 3 months security but was told no one will give more than 2 plus 1st months rent.

We get credit report, paystubs, copy drivers license for sure I would like to get last tax return but doubt they would go that far.

Also get every adult that is living there to sign not just one person.

Our broker also told us to video before turning over because if the house was trashed they R subject to great criminal charges.

Hopefully we can find nice folks that R responsible and pay.

.

[Posh 08]

The only downside in NY for sure is if they don't pay it takes 2-3 months to evict.

So the security deposit is gone into the negative.

Any money judgement is likely worthless.

We tried asking for 3 months security but was told no one will give more than 2 plus 1st months rent.

We get credit report, paystubs, copy drivers license for sure I would like to get last tax return but doubt they would go that far.

Also get every adult that is living there to sign not just one person.

Our broker also told us to video before turning over because if the house was trashed they R subject to great criminal charges.

Hopefully we can find nice folks that R responsible and pay.

.

Criminal charges are probably not an option unless you could pinpoint which person actually did the damage.

[jimbo2012]

Criminal charges are probably not an option unless you could pinpoint which person actually did the damage.

If you write the lease correctly they can be jointly or severely responsible I believe.

Another tenant that would be good is a corp that pays for an exec to live for a year+ while they are on a project.

[Posh 08]

If you write the lease correctly they can be jointly or severely responsible I believe.

Another tenant that would be good is a corp that pays for an exec to live for a year+ while they are on a project.

If you are talking civil and not criminal perhaps.

[bestmickey]

....
Never mind. I'll send you a PM.

[jimbo2012]

If you are talking civil and not criminal perhaps.

Nope NY has criminal provisions for trashing a home.

[Posh 08]

Nope NY has criminal provisions for trashing a home.

I Heart Virginia.

[mrfixit]

and no one has mentioned what an excellent tax advantage renting a home gives you

...

[SukiChu]

Thanks to all of you who replied with some great information. I think we will give it a try and see how it works for one year.