Renting my house

4 Replies

Hello Bigger Pockets Forums,

I am considering renting my house and moving closer to my job.  This would be my first time being a landlord.  I would like to know what things I should consider?  I have read the "How to rent your house" eBook / reading the forums and have been researching the rental market as a newbie any advice would be great.  I also would like to know does owning a house affect me from renting another house or appartment?

Thank you for your help in advance,

Ken Aalderks

Ken,

Just follow the renting 101 guidelines.  Treat renting your home as it were a business.  Make sure the tenant makes 3X the rent, has verifiable rental history and employment history as well as a credit and background check.  On credit, make sure there is nothing like an eviction or owing a utility company money, etc.   Have a lease in place that protects you.  Do not be friendly with the tenants.  If they are late, charge them a late fee, if no payment has been made within the specified time, file with an eviction attorney.  My tenants get a 'break' once a year and never in the first 6 months.  

As far as being able to purchase another home, you will need to confer to a lender. Most of the time they can count the income from rent so you should be able to get a loan for another home.

If you will only have one rental and don't plan to quickly get more, you may want to use a property manager.  There is a steep learning curve for tenant screening and landlording, may be easier to outsource.  If you want to do it yourself, join a local property owners association, the legal forms specific to your are come with the nominal membership fee.  Read books about landlording.  Figure out your criteria (accept pets, how many people, criminal OK, etc), how you are going to process applications (on-line service, fax in their application form, self serve), etc.

As far as renting another place, it shouldn't hurt you - you have proven yourself financially responsible, that you are able to take care of minor maintenance issues, and probably have more realistic expectations.  You should be able to count the rental income as an additional income source to offset the mortgage debt payments.

Originally posted by @Ken Aalderks :

Hello Bigger Pockets Forums,

I am considering renting my house and moving closer to my job.  This would be my first time being a landlord.  I would like to know what things I should consider?  I have read the "How to rent your house" eBook / reading the forums and have been researching the rental market as a newbie any advice would be great.  I also would like to know does owning a house affect me from renting another house or appartment?

Thank you for your help in advance,

Ken Aalderks

 I disagree about getting a property manager.  They're expensive.  There are always costs above and beyond the monthly fee.  You can do a search on property manager problems, so I won't get into that.

As far as being able to rent, that shouldn't be a problem.  As a manager, I'd look at your income, and your credit.  And I'd know that I could always put a lien on your property if you ended up owing me money, so you'd be a good risk - as long as I could see your weren't going into foreclosure.  So, renting shouldn't be a problem at all.

I love the books by these guys:

http://www.nolo.com/products/landlord-tenant/landl...

I see they're having a Memorial Day sale right now, too.

You can use a service like mysmartmove that does the credit and background check.

You will definitely want to make sure they can afford it with the 3x rule

Do verify employment and landlord references. 

Some proper pre screening over the phone will eliminate a lot of no shows.

Listen to the podcast below and it should answer most of your questions:

http://www.biggerpockets.com/renewsblog/2014/08/14/bp-podcast-083-landlording-integrity-marcia-maynard/

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