Rental Property question...
 

Been here 8.5 yrs. Have two houses and one will be vacant to rent soon. Thinking about trying to do without a rental agent. Those of you who have experience in renting properties to others let me know your thoughts. It's a 3 BR, two bath ranch in Duval. :icon_wink:

Hire a cleaning service.
Large deposit.
Do not include golf cart.
Make sure your insurance carrier knows it's a rental.
Consider putting the house into a LLC
Longer Term better than short-term rentals.
Smoking??
Pets??
Consider taking pictures of interior between renters.

Run credit checks on potential tenants. If you have a mortgage on the house make sure it does not require the home be owner occupied.

Limit number of people in the house

There are 1600 rentals in TV listed on this website, probably most don't have a rental agent.

VH4R Home Rentals in The Villages Florida The VIllages Rentals

Do a detailed financial analysis. Make sure you allow for all costs, including lost rent, damages, maintenance, insurance, etc. You may find that it is not worth the effort to be a landlord. It wouldn't for me, especially if I only had one house to rent.

If you're doing monthly or season rentals, get the payments up front.
If you're offering a cart, insure it but have them sign a waiver anyway.
Make sure your insurance company knows it's a rental property.

You really have to have the place ready to rent and it takes some effort. A cleaner is important.

The expenses are not trivial, specially if you're offering Internet and TV.

We've not used an agent, nor do we plan to, but you need to have some high quality pictures. I also have a web page I put up that has details too.

So far everyone has been great, but we only do monthly. I can't imagine Airbnb or the like. Oof, that's gotta be a PITA.

Don't forget appreciation especially if buying new. If you would have bought new in Fenney in 2017 your would have made out without even having a tenant.

You would have made more money by just buying an S&P 500 Index fund. Appreciation is not guaranteed. I wouldn't consider potential appreciation of a house as a reason to become a landlord.

Potential appreciation is just part of what has to be looked at it will offset most if not all of the expenses involved. Real property always has a value that can be expected here in TV, not so with index funds, much more of a gamble.

Appreciation is great but if you sell it you will have to pay capital gains on the difference of the depreciated value of the house and the selling price. Uncle Sam always wins. Look before you leap

In my experience, many people who rent houses will exaggerate how much money they are making on the houses. But, when you actually do the math and consider all the costs vs the potential income by just investing the equity elsewhere, their real income falls well short of their estimates. If I wanted to be a landlord in The Villages, which I don't, I would buy and rent out multiple inexpensive houses in the Historic District.

Correct, at the capital gains rate, that goes without saying and all profit is taxable in one way or the other, no need to look before you leap, just understand the longstanding tax laws of our country before you invest in anything.

If you already own the property ( no mortgage) renting it out may be an option. If youve never rented it before you may be able to use the current value as the basis for future capital gains when you sell. The above mentioned web site is a great resource you can see going rates for seasonal and year round leasing ,see about cleaning fees, down payments, security deposits etc.. Seasonal renting may be an option because of the higher rents and less wear and tear. Of course the house would have to be furnished , with houshold items etc.. Rental agencies charge up to 20 percent but if you live in the Villages you can take care of alot of the tasks ,checking renters in etc. ,if you choose. It would make sense to check with your accountant and attorney for advise.