Scottiemom
South Dakota/Indiana
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Joined: 09/09/2003
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We require a 700 credit score. Seems to weed out most of the undesirables.
Serena is right about the discrimination thing. We were challenged on the "no pets" . . . not by a prospective tenant, but by the newspaper. We must accept service animals. I have no problem with that, but anyone who has a service animal would know that and would likely be upfront about their animal. BUT, the newspaper wouldn't let us put "no pets" in the ad. So, now the first question we are asked is if we accept pets.
I'm not much in favor of property managers. I have been in a lot of buildings managed by them and quite frankly, they don't take the personal interest in the properties that we do. We manage our own and use a resident manager to collect rent and be the first in line to call for emergencies. In the summers, we consider that our "workcamping assignment" and spend time doing any needed maintenance.
Our rents are considered low for the average and our apartments above average. We feel that combination helps to get people who want to stay and make it their home as opposed to someone living in there temporarily.
Dale
Dale Pace
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Mom to 2 rescued Scotties
Bailey and Neal
2006 Tiffin Phaeton 40' QSH, 4 slides (Phaeton Place)
2003 Sport Trac Toad
Fulltiming since retiring in 2005
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BarbaraOK
Livingston, Texas, USA
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Please look at what renting out your house may do to your tax situation should you decide to then sell it.
If only going for a few months, just lock it up, turn off the water, and hire a landscape company to keep the yard up.
BTW - only going for 3 months will not give you the feel for fulltiming, but you may get the bug to try it for a longer time.
Barb
Barb & Dave - full-timing
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Teacher's Pet
SD.. Fulltimers. Goshen IN summers
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Scottiemom wrote:I'm not much in favor of property managers. I have been in a lot of buildings managed by them and quite frankly, they don't take the personal interest in the properties that we do.
Dale
As Dale said we are not in favor of property management companies. After going to court with a problem tenant that we "inherited", we settled on the 700 credit score. The very enlightening part of the court process was watching a local property management company's representative present about 15-20 tenants for eviction, we'd rather screen our own prospective tenants. Another landlord that was sitting beside me said "They have been every time I've been here, always this way". We've let an apartment set for over 3 months waiting for the right tenant(s), We'd rather loose 3-4 months rent than spend a year's worth of pre-expense rental income on a refurbish. BTW the evicted problem tenants, cost us about $6000 in repair costs for 23 months rent receipts. Now drop out the approximately 10 months rent that went for property taxes and insurance, you can see this was a bad deal from day one.
'06 Phaeton 40' QSH
'03 Ford Sport Trac
Scottiemom's Pet
Husband to Dale
2 Traveling Scotties
RV.net Rallies 11, Other Rallies 9, Escapades 5
2005 F/T Class
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Serena
US
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Joined: 01/12/2008
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Teacher's Pet wrote:Scottiemom wrote:I'm not much in favor of property managers. I have been in a lot of buildings managed by them and quite frankly, they don't take the personal interest in the properties that we do.
Dale
As Dale said we are not in favor of property management companies. After going to court with a problem tenant that we "inherited", we settled on the 700 credit score. The very enlightening part of the court process was watching a local property management company's representative present about 15-20 tenants for eviction, we'd rather screen our own prospective tenants. Another landlord that was sitting beside me said "They have been every time I've been here, always this way". We've let an apartment set for over 3 months waiting for the right tenant(s), We'd rather loose 3-4 months rent than spend a year's worth of pre-expense rental income on a refurbish. BTW the evicted problem tenants, cost us about $6000 in repair costs for 23 months rent receipts. Now drop out the approximately 10 months rent that went for property taxes and insurance, you can see this was a bad deal from day one.
Yes - my point exactly about the bad deals. I have many times had to fight long and hard with property owners who didn't understand what you know all too well. It's not a bad business, and can be highly profitable if you know what you're doing. Unfortunately, those infomercials... wish I had a nickel for every job applicant who told me they were qualified because it was 'easy', 'anyone could do it', and after all, they'd been a renter themselves for years.
You can't really judge a property management company by its court appearances alone. I've done hundreds upon hundreds of evictions, working for a court receiver. That situation requires absolute adherence to the prevailing laws and complete accountability. When you take on a lot of new business, a whole lot of housekeeping is often in order. It's not because you managed badly - but because somebody else did. Other situations could include new property purchases, remodels, condo conversion, etc.
That is in direct contrast to some of the really bizarro things I've seen in the opposite direction, such as a guy who would take appliances hostage until a tenant paid up (making like a pawnbroker). The onsite manager who would take bribes to not serve eviction notices, or the owner who would blow an in-process eviction by negotiating with tenants charged with crimes against property employees (he was in need of new management within 5 minutes of my hearing about it). Really - property owners are people, too. And can be just as out there as their tenants. A lot of times, the only way to clean it up is to blow out the whole crew - tenants, employees, the whole lot - and rebuild the business so that it works again.
So then, on the other side, you have tenants who are convinced through past experience that all property owners are jerks and deserve whatever they hand out. And maybe worse - the timid ones who 'don't want to bother you' about the roof leak, the bugs, or the plumbing. Or the sick and disabled ones who barely know anything is wrong. So they don't bother you - and you get the mounting expense from the deferred maintenance.
Collisions of financial interests and personal interests are almost inevitable - and both parties tend to take it all very personally and react emotionally instead of doing what makes sense. It's one guy's nest egg against the other guy's 'castle' - the very things in life that ordinary people will kill or die for. One has the upper hand legally, but the other is in possession. They can mess with each other unmercifully and when that happens, nobody wins anything. So managing is the art of getting them both to create comfort levels and profitable situations for one another so everybody feels secure in their arrangements.
So you'd THINK renting out a single property presents less problems. But it creates even more, because you aren't dedicated to doing that business full time, and it's a specialized business. Each and every challenge has to be met top to bottom by YOU. And that's a hassle. Somebody has to get those estimates, know the prevailing costs of everything involved, know which vendors will bring the job in right the first time, oversee ongoing repairs and regular maintenance, know the applicable laws, manage the budget, do the marketing, handle the banking, interface with the tenant, etc. etc. That's all wayyy easier when you have hundreds or thousands of them to do and you're there to do it.
I'll put it to you this way - after all I've done, I would not want to be the landlord of a single property that way. Even everything I know about that business wouldn't save me from the risks and hassles of being a small-time operator. You can go from zero to full-time headaches in about 5 minutes. (OTOH, if I was a bad tenant looking for a place to land - you'd be just about my favorite kind of target landlord.) As suggested - leave it vacant for 3 or 4 months. Go play. see how you like full-timing. Then make a decision you can really live with.
Serena
I Know Where I Been, Cuz I Was There When I Went.
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Scottiemom
South Dakota/Indiana
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Yeh, what Serena said.
Dale
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ramblingshots
Long Bay Club
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Joined: 08/15/2008
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THANKS EVERYONE...... A lot of great information here, from some obviously knowledgeable people, especially you Serena. I have a lot to think about, and will continue to investigate this until we get back from our winter hiatus in the spring.
It looks like, from what I hear in this forum, it still comes down to, do we run away and experience and learn about FullTimeing for a Year, and 1-continue to make mortgage payments on an empty house (a redundant expense), or 2- roll the dice on a property manager and their skills/etc., or 3- shop for the perfect renter ourselves.
It keeps getting "Curious-er and Curious-er" My DW just asked me why I was sitting here, with my eyes glazed over. I just shook my head!
I Started with NOTHING, And I Still Have A Little LEFT! )
Holiday Rambler Arista 35-foot, Gas 8.1-Workhorse, Allison 5-speed, 3-slides,In-Motion SAT.
2007 JEEP Wrangler Unlimited Sahara-TOAD
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BarbaraOK
Livingston, Texas, USA
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Until you've done your 3 month stint, don't even worry about it - - your DW may not like even 3 months.
Ask yourself this question - would you want to spend the rest of your life in that house if you didn't RV or would you like to downsize? If the latter, then sell the house, put the proceeds in savings, and go tour the country looking for a place to land.
Barb
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wilsongulf
North Port, Florida
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Joined: 08/08/2007
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We have been fulltiming since Jan of this year. We left for California from Florida. We hired a real estate management co. We rented to a single mom and all the bull#%$^ that goes with them. Long story short we rented the house furnished for extra rent amount. She paid the first two months rent 12 days late each month. The third month she paid rent and then stopped payment. After that she sole all of our furniture. We had the police there and they let her take all of our stuff. They decided that is was a civil matter. It turns out the renter has all the rights. We have since had her evicted.
Proceed with caution.
John
* This post was
edited 09/17/08 06:31am by an administrator/moderator *
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agkcpa
Santa Barbara, CA
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Joined: 10/12/2000
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ramblingshots wrote:OK, I have a nice house and a nice new RV coach, and I have reservations to spend Jan-Mar in the Tampa area, to see how my wife likes living and socializing long-term in an RV.
If all goes well, I want to dip into full-timing, for 6-months to 18-months, but then the house would be a management problem, being away that long, unless I rented it out to another couple (no kids), furnished or unfurnished and got a lease for the full period we were away.
I need thoughts and suggestions on this idea. I think it might work, but I have no experience with renting. Help?
Personally, I believe that it would be a good idea to keep the house until you and youe wife decide what you want to do. If youe and your wife decide that fulltiming is not for you, you can move "home". If fulltiming works out, you can either sell or rent the house. Personally (and I speak from experience) I suggest that you sell the home once you decide that fulltiming is for you.
Then, you need to decide on a plan an exit strategy.
Happy Travels,
Art
Come Visit Us At RV Lifestyle
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