I need some advise on renting my condo

5 Replies

Hello everyone, I recently bought my first property as my primary residency. I got a new job offer and I am going to have to move to a new location. Are there any legal consequences if I try to rent out my primary residence knowing that I signed a document saying that it will be my primary residence for at least one year? I will not have to pay rent where I going to be moving, so I’m thinking to rent it out, instead of selling it. Also I don’t have any experience as a landlord, but I would like to learn as much as possible. Is it a good idea to rent it to tenants with MVRP program, what are the pros and cons? Thank you all for the advise. Julian

The bank usually only cares if you pay on time.  I have never known for them to check.  They love it if they can automatically take out the payments from your bank account so they really would never know where you are physically.  Good luck on your job change.  

In regards to looking for a PM.  Just make sure you screen super hard as you won't be their big client so they may not give you as good of attention.  But you can help yourself by doing some intense screening of your potential tenants like using a website like Zumper that screens credit, criminal, and eviction history for you and they charge the tenants the fee, not you. Once you secure your own tenant than turn it over to a PM with your lease in place that works for you.  

Hey Julian, Congrats on your new venture! If you're holding fee simple ownership in your property it is apart of your ownership rights that you are able to rent it out. However, I would still double check your lender if there was a clause you agreed to stating YOU would be the primary resident for a specific length of time. If they did do an inspection of the property and discovered you were in breach of the contract, they could call your entire loan due prematurely. 

A pro to dealing with vouchers is that the rental payment is guaranteed and likely to be timely each month. However, the quality of the tenant could potentially be a con. If you are unfamiliar with the process of screening a tenant and/or may be relocating long-distance -  my best advice would be to find a qualified property manager to screen and onboard your new tenant as well as maintain the asset. Good luck with everything!

Revision to answer your last question: start advertising your property on internet listing sites to attract interested renters. Hotpads.com is a great one that also sends your property's information to several other listing sites. It's also free. Craigslist is okay, you really have to pre-screen inquires that come through that source to make sure you're not wasting your time on someone that probably won't be the right fit. There are a number of sources for free lease templates, google one for your state specifically. 

Congratulations on doing what most others are afraid to do.  I got started this way too.  

Others have already covered the legal issue so I won't add to that.

I just wanted to add that I'm not familiar with the MVRP but renting to low income households brings unique challenges probably better suited to experienced landlords.

I would consider using a PM company since you will be a long distance landlord.  It will make life a lot easier as you adjust to your new job and home.  Be sure to get involved and learn how they manage the property then you can take it over later if you want.