Rental Question

[SCNCY]

I am looking at purchasing my first house here within the next 6-10 months. This is going to be a starter home and my plan is to really live there for only a couple years. After that, I want to rent it out. My question is that for those of you who rent out properties are the following.

What legal documents do you use, and where do you get them? Lawyer, legalzoom?
If something breaks, do you end up fixing it, or do you hire it out?
When you first started, what would you do differently now then you did when you started?
How hard is it to find tenants for your properties?

Also, for what its worth, I live in Kansas City.

 

[SCNCY]

Bump!

 

[SCarolinaCy]

I am looking at purchasing my first house here within the next 6-10 months. This is going to be a starter home and my plan is to really live there for only a couple years. After that, I want to rent it out. My question is that for those of you who rent out properties are the following.

What legal documents do you use, and where do you get them? Lawyer, legalzoom?
If something breaks, do you end up fixing it, or do you hire it out?
When you first started, what would you do differently now then you did when you started?
How hard is it to find tenants for your properties?

Also, for what its worth, I live in Kansas City.

 

[SCarolinaCy]

Sorry to be so short here, but you will learn by doing.

 

[IAStubborn]

In KC, rule #1 don't rent to Jayhawk fans don't worry they are not protected by the fair housing act.

2. I use a real estate lawyer who drew up my base lease. Cheap and they cover state specific laws etc. Legal zoom may be fine just haven't used.

3.As for repairs you can hire a property management company if you don't want to take calls at night. But most repairs you will hire out but some you can do depends on what you have for time and profit margin you want.

4. If I had to do it over again. By farmland, you still get rent and you never have to fix ****.

 

[SCNCY]

Thanks for the advice IAStubborn. Do you own any real estate properties that you rent out?

 

[capitalcityguy]

I am looking at purchasing my first house here within the next 6-10 months. This is going to be a starter home and my plan is to really live there for only a couple years. After that, I want to rent it out. My question is that for those of you who rent out properties are the following.

What legal documents do you use, and where do you get them? Lawyer, legalzoom?
If something breaks, do you end up fixing it, or do you hire it out?
When you first started, what would you do differently now then you did when you started?
How hard is it to find tenants for your properties?

Also, for what its worth, I live in Kansas City.

When I got married and moved out of my townhome, the market was bad so I decided to rent vs sell. It has been a good experience for me.

I use a lease that I've put together over the years. To be honest, can't tell you the original source. Most likely online or in a reference book about being a landlord. I recommend you read a book or two on the subject before diving in.

On repairs - I've done it both ways. If the tenant is handy and wants to get a break on upcoming rent and it is nothing I'm worried about them messing up, then I've let them handle. e.g...thermostat went out and a past tenant installed a programmable one. If it is simple - I just installed new smoke alarms as they old ones required replacing, I do it. If it is larger - new water heater, I hire it out. I'm not afraid to hire out in general as the place provides positive cash flow so the expense can be a nice write-off on my taxes.

Do differently? Compared to when I started , I now ask for a higher rent (comparatively speaking) and am more patient on selecting tenants then when I first began renting it out approx 12 yrs ago. I learned early you can get much higher quality renters if you use a little more patience.

My townhome is in West Des Moines in a pretty desirable area, so that helps. I do price aggressively (i.e...not on lower side), so I don't' have a flood of applicants, but always seem to find a good one. I use Craigslist to advertise.

Hope that helps!

 

[SCNCY]

When I got married and moved out of my townhome, the market was bad so I decided to rent vs sell. It has been a good experience for me.

I use a lease that I've put together over the years. To be honest, can't tell you the original source. Most likely online or in a reference book about being a landlord. I recommend you read a book or two on the subject before diving in.

On repairs - I've done it both ways. If the tenant is handy and wants to get a break on upcoming rent and it is nothing I'm worried about them messing up, then I've let them handle. e.g...thermostat went out and a past tenant installed a programmable one. If it is simple - I just installed new smoke alarms as they old ones required replacing, I do it. If it is larger - new water heater, I hire it out. I'm not afraid to hire out in general as the place provides positive cash flow so the expense can be a nice write-off on my taxes.

Do differently? Compared to when I started , I now ask for a higher rent (comparatively speaking) and am more patient on selecting tenants then when I first began renting it out approx 12 yrs ago. I learned early you can get much higher quality renters if you use a little more patience.

My townhome is in West Des Moines in a pretty desirable area, so that helps. I do price aggressively (i.e...not on lower side), so I don't' have a flood of applicants, but always seem to find a good one. I use Craigslist to advertise.

Hope that helps!

Thanks a lot, this helps. I am in the process of buying my first home, and part of my decision is finding an area that is desirable but also rentable. Rentable would include something in Kansas City close to the plaza/Westport/Downtown/etc. If I decide to not go the renting route, then I would probable find something in the suburbs.

 

[Gossamer]

Make sure the amount you "think" you can get in rent will offset the payment you are required to make once you leave.

So many people buy homes with little money out of pocket and think it's simple to pack up and rent it out...but the higher the loan amount the higher the payment, obviously.

Also remember that when you go to purchase a new property, the length of time you have been a landlord may be a factor in your ability to count that as an income against your debt. Even if they do offset, there is a 25% vacancy factor...so if you get $1,000 a month in rent, you'll at most get credit for $750.

Good luck with whatever you choose to do.

 

[Amandabui252]

Thanks bác, giờ mình mới biết đến thông tin hữu ích này. Ai có những thông tin dạng như thế này post lên cho mọi người cùng tham khảo luôn nhé. Đang rất quan tâm

 

[Dr.bannedman]

Thanks bác, giờ mình mới biết đến thông tin hữu ích này. Ai có những thông tin dạng như thế này post lên cho mọi người cùng tham khảo luôn nhé. Đang rất quan tâm

Thanks uncle, now I know this to be useful information. Who has this kind of information posted for everyone to refer always offline. Are very interested

 

[ImJustKCClone]

Bumping a thread from a year ago with a post in Vietnamese. Now THAT is creative.