Renting my primary residence out month to month

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Renting my primary residence out month to month

Adam Riscoe
Charlotte, NC · Member since 2013 · 3 posts · 0 votes

My wife and I are taking a 4-6 month trip to Europe and Asia this Fall. We already found a short term tenet willing to sign a 3 month lease with an option for a 4th month. The rent covers PITI and utilities with a little extra built in to cover anything over the average utility usage. Security deposit is equivalent to one month rent and we included a non refundable pet fee. We're packing up most of our clothing and valuables, but leaving the place furnished along with kitchen/cooking equipment.

Wondering if anyone has done this and what they learned.

We’re still drawing up the lease, anything I should include?

Thanks for your advice in advance 

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    8y

    I don't recommend finding tenants and then drawing up a lease, but that ship has already sailed. You can get 100 different answers to a generic question like this because there are a ton of horror stories. The lesson learned is that you must, must, must properly screen the applicant. You've already chose one so we can't help you there.

    Some generic recommendations:

    You run the risk of the tenant ruining your home, as well as all your furniture. Or they could steal stuff. I recommend a detailed inventory using pictures and videos. Open every drawer, cabinet, and closet to inventory contents. Record every wall, ceiling, floor, front and back of doors, shades opened and closed, window screens, yard from every angle, home exterior from every angle, mattresses (uncovered), etc. Let the tenant know - in advance - that everything has been documented so they are less likely to steal or hide damage.

    The lease should cover lawn care and that the tenant is responsible for repairing damage from their pet, to include dead grass from pet urine.

    Have an eviction attorney in mind and start the eviction process at the first available opportunity.

    Any specific questions I can help with?

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  • Josh Caldwell
    Investor · Dallas TX, United States · Member since 2014 · 1k+ posts · 1k+ votes
    8y

    Make sure you screen your tenant thoroughly, screen for credit and criminal 

    Also make sure that you include lawn care and maintenance.   Make the tenant responcilbe for any code violations that happen when he is in the home.  What you dont want is to get grass cutting fines after you get back. Also arrange a contact person for major repairs. You need to prepare for a tree hitting your roof while you are in Europe.

    To your success

    Josh  

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  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    8y

    Bottom line is there is zero room for trust in the world. You go forward at your own risk.

    Document everything and be prepared. Worse case you may be forced to evict your tenant to take back your home when you return..

    Good luck.

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  • Amy Beth
    Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
    8y
    I would make sure that you screen these tenants carefully. Also be sure they are responsible for cutting the grass and snow removal in the lease. Think about if you want to include utilities in the price or if you want the tenant to pay utilities themselves? Also inform your homeowners insurance company. And lastly I would use an online service for rent collection such as cozy.
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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    8y
    An important part of the lease is who can occupy. i would limit overnight guests in lease. Consider an excessive use clause for utilities. Talk to your neighbors and let them know to notify you with concerns. (e.g. there are 10 cars at the house.). Putting your stuff away. It is not just valuables, it is also favorites. People break incidental stuff or use it in ways you dont want it used and it is a pain to replace. For kitchens remove extras. Leave the basics. do a detailed inventory for your stuff like an excel sheet with # and condition ( no scratches, stains, burns). Pictures are good but some things dont photograph well. Lastly, leave a binder with all your owners manuals, label things that are difficult to operate with pictures if you need to. It will save you calls and breakage. Enjoy your trip.
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  • Adam Riscoe
    OP
    Charlotte, NC · Member since 2013 · 3 posts · 0 votes
    8y

    Thank you all for your advice. A few things I didn’t mention in the original post:

    - I’m a licensed Realtor and have access to some additional tools and services - background check, zip docs, etc. 

    - my mom, also a realtor, lives close and is “managing” the property while we’re away. 

    - the tenants: long story, but they are the parents of a pregnant neighbor, who is a RE Agent too. They want to be in town for a few months to help with the baby.  

    Honestly, I dont know if we would have rented our home to some Craig’s list randoms. we’ve  meet everyone and feel very comfortable with this situation. That said, We’re still doing our due diligence. 

    Thanks again for the advice!

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  • Max Gradowitz
    Bakersfield, CA · Member since 2016 · 378 posts · 307 votes
    8y

    What I would be most concerned about is if they don't leave.  I know you think they are great people, you found them through family/friends, etc.  Well, that's great, but if for whatever reason they don't leave, you will have to evict them from your own house and will have to find a temporary place to live in the meantime.  You can get sued if you do anything wrong regarding these eviction procedures, or at least have your eviction take considerably longer.  I'd recommend discussing the risks with an attorney and at the very least having a plan in place to deal with the worst issues that could arise with leasing your primary residence short term.

    Be sure to provide proper notice (probably 1 month in advance of the lease end date, but check your state laws about proper notice) for them to leave and it would be a good idea for you to have a neighbor check to confirm they are moving out in the days prior to your returning.

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  • John Mocker
    Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    8y

    Adam,

    Check with your agent to make sure the short-term rental is ok.  Also, you should consider requiring them to have Renters Insurance so they have some liability coverage (I would require $500,000 as it usually only costs a small amount more than $300,000 limits)

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