My husband and I are considering moving, but we would like to keep our home and rent it out. What goes into that? Do we need to find a lawyer, pay additional taxes or insurance, etc...? I know nothing about it-so detailed steps of the process would be GREAT!
2007-03-13 05:51:16 · 3 answers · asked by Kristen W 1 in Business & Finance ➔ Renting & Real Estate
No extra taxes, just put up a for rent sign. A property management company can screen your tenants way better than you can though.
Take it from me, a LOT of people who have bad credit and who would love to turn your home into a dump are out looking for people who wont screen them, because the credit and criminal checking landlords have told them NO over and over and they are desperate for a home. Shop property management companies, they will screen, collect rent, use their contracts, and go to court if needed. MAke sure they have a real estate license which is required, and that they are a large reputable firm. Typical fee is 10% of each month's rent, and a commission for renting it out, but if you shop around you might find a better deal.
2007-03-13 06:07:30 · answer #1 · answered by Mark P. 5 · 0⤊ 0⤋
Look in your phone book (or on line) for property management companies in your area. Check with BBB (Better Business Bureau) and local Chamber of Commerce to see the complaint history. Narrow to two or three and interview them.
Property management is often a sideline of real estate agencies. Your goal is to keep your property rented and maintained. The real estate agent may prefer to get your tenant to buy a place. Make sure you are clear with the Property Manager that they need to enforce the terms of the lease. (It is better to have one renter in the house for one year than four renters for one year, even though the house is rented the same number of days. Longer term renters tend to take better care of the property.)
You do NOT need a lawyer if you use a Property Management agency. (If you have no experience with contracts you may want your lawyer to look over the contract with the Property Manager as well as the PM's standard Rental Agreement.)
Your property taxes will increase only if your state has some sort of homestead exemption that you no longer qualify for. Make sure your taxes, insurance, and some repair factor are considered in the rent.
Insurance will come down a bit because you will not cover contents.
2007-03-13 06:09:36 · answer #2 · answered by SA Writer 6 · 0⤊ 0⤋
There is a lot of reputable property management company for rental property, fine one, they take care of everything for you.
2007-03-13 06:00:32 · answer #3 · answered by J J 2 · 0⤊ 0⤋