Why shall I pay top dollar and rent Grandma's House?
Sellers that cannot sell their Schaumburg Home in our market area are turning to becoming landlords. They really don't have a clue what is expected or what they should do to prepare for this new moniker but most are financially pushed into the situation. I'll call you the reluctant landlord!
Here is some advice ~
1) If you haven't painted your homes interior since 1990 (exterior too!) why would you think that a renter would want to live in your property? Most expect a nice neutral paint job without your youngest child's crayon marks.
2) Carpeting - if you still have carpeting that looks anywhere on the color spectrum near 'baby blue' or 'mauve' - you're in trouble. If you don't like the carpeting any longer, why should your new tenant?
3) Maintenance - Be assured that the tenant will do the minimum lawn & exterior maintenance to your home. They'll mow the lawn MAYBE once a week. I am assuming that you will have to stay on top of them before the village does it for you with a fine. Because of the increased foreclosures in the area, most villages are having a zero tolerance on lawns that are not being cut.
4) Updating your home - When (or if) was the last time that was
completed? Recently working with a transferee from Colorado we went into a home with the original 'formica' counter tops. I haven't seen these since I was a kid! The couple wanted nothing to do with the old dilapidated kitchen cabinets, gold toned flooring and brick paneling. If you are asking market rent your home better show in top market condition.
If your home is not updated and neutral you cannot expect to get current market rent! Sorry, the home that looks the nicest and gives the best features also sells the quickest and rents the fastest. Your new tenant does not care how long the house has been on the market nor your current financial condition. They want the best house for the least amount of rent.
5) How does your property smell? Does the house smell like it hasn't been cleaned since 1990? A musty smell to a prospective tenant is a warning sign of potential mold and lack of maintenance on your part.
6) Who will do the maintenance on your rental? If you are not the 'handyman type' then you had better have someone on call for items that occur at all times of the day or night. From past experience, water heaters never seem to break in the middle of the day! It's always when it's the most inconvenient near the 'witching hours' of 2 to 3:00am. Do not expect the tenant to treat the home in an emergency the same as you would. Prepare for anything that can happen.
7) The tenant wants the least amount of hassle from the landlord just as the landlord wants the least amount of hassles from a tenant. Asking for odd and unreasonable conditions of a tenant will only have you sitting with the house longer than necessary. What conditions you're wondering? Security deposits for garage door openers of $100. Get a grip here!
What would be important to a landlord is credit score and past pay history of rent or mortgages. My advice would be to hold to a minimum as best you can there. Check and verify everything that is on the credit report to give yourself a good financial picture of the prospect. If the applicant has a good credit score and a good pay history maybe allowing a dog won't be such a bad thing after all? Obviously dog and cat owners can pay rent on time too! Any fears can be relieved with a pet deposit given along with the security deposit. Make it obvious in a rider that any damage by the pet will be paid for by the tenant!
Great post, Lyn. I particularly like the last bit about the pets.... so practical!
Marcie: Not every pet owner is a bad tenant, the numbers just don't prove that out.
Agreed. I have always owned a dog and let me tell you..Buddy never had an indoor accident in any of the apartments we lived in...and the rent was always paid.
Hey Lyn. Out our way too. I have sellers want to rent their place or a home that was left to them and I cringe because so many of these people don't have the time to become landlords and have no idea what to do. They think becoming a landlord is super easy!
Funny, I was giving similar advice to a friend this past weekend and thinking about writing a blog about it. In this market, landlords, like sellers, have to go the extra mile and give potential renters/buyers something they can't pass up.
Joe: Just doesn't make sense that ALL pet owners have pets that wreck the place.
LaNita: You know what I mean! I'm going to say that 4 out of the 5 that I showed were like this in Elk Grove or Itasca. People are just not getting it.
Colleen: Yes the reluctant landlord as I call them. I was also thinking of posting a warning for tenants on what to watch out for with sellers that aren't paying their mortgage.
If the place is a shack, neglected, dirty and smelly, a renter who is a happy camper there is not the bed bug carrying one you want. The damage escalates as you attract the wrong type of renter that makes the place look like a combat zone. Or the set of a Stephen King movie, after filming is done, the hot lights turned off, boom mics lowered and cast, crew high tail it.
Hi Lyn...Great post. Many people don't realie the importance of up to date life style in doing business.
On the pet issue, we have had 3 renters with pets, and it was a disaster. But, we tried once more this one is great. So it is a tough call at times.
Bill: Well, you have to maybe pick good score plus dog? or low score and no dog?
Sometimes it is the little things in life that count the most. Your list is a perfect example of what can make a BIG difference in a home.