Anyone here own rental properties?

[INEEDAGN]

Long story short, wife and I are looking at houses because we need more room. We are currently living in a modern double wide in an area where ground is hard to come by. We are thinking of moving into a bigger house and renting this trailer out, because I REALLY don't want to sell this ground (I'd sell the GN first). If we don't rent it, it will sit empty and I may try to sell the trailer off the ground. I have big dreams of building a new yet modest house here someday.

My big question is: Is it really worth the hassle? The going rate for rent around here would cover the current house payment, insurance, and property tax but would not actually turn a profit. It was built in the 90's and has been mostly trouble free for the past 5 years, has a new roof, very energy efficient, and I'll only be down the road 5 or 6 miles. I'm not really concerned with minor wear and tear on the trailer itself, as long as they don't deliberately trash it. We would be able to afford to let it sit empty if need be, but would rather not try to swing the extra expense constantly. I doubt we'd have to, because word is out and people have already called us asking about it. And I have NO plans to rent more than one place. What are the big do's and dont's? And how does this affect my income taxes if it doesn't actually make money?

 

[Pronto]

Tennants are like having another PITA child to take care of. If you don't mind dealing with morons, drug addicts, liars and destructive people you'll be fine.

 

[GNBRETT]

What he said. Save urself the aggrivation. Too many rights to useless deadbeat tenants. By the time you get them out for no payment ur 4-5 months behind. Some get lucky. Most get pita tenants that live like animals.

 

[JOHNDEEREGN]

Bob-

Yes I do, and in our rural areas of Kansas we know everyone guys, well most all people in our towns.

If ya need to visit about my prior experinces call me at the office.

If ya want my number PM me. It is not like the Big City where I would say Hell No!

 

[xtremexnyc]

What he said. Save urself the aggrivation. Too many rights to useless deadbeat tenants. By the time you get them out for no payment ur 4-5 months behind. Some get lucky. Most get pita tenants that live like animals.

Agreed! I am in a situation right now with my rental property and need to go through the eviction process. Never again!

 

[V8Assassin]

What's the payoff on the trailer now? That should be your determining factor. If you can sell it and get out from underneath it, or even turn a small profit on a one time sell don't hesitate. You still retain the lot it is on, and don't have to sweat the expense of the mtg on it. You would essentially be working for free if you rent it, maybe the tax guy, the ins guy, and the bank guy would say thanks but I doubt it. Part time landlording is a huge PITA.

btw I am a full time landlord

 

[Pronto]

There is no such thing as a part time landlord unless you pay someone to do everything. If you don't have the money to pay both mortgages/expenses then you're on the hook if the renter fails to pay.

 

[Black3]

I had rental units in Hartford when I was in my 20s. Even if you're not prejudice before you become a landlord, you probably will be after. I figured out that if they are up to anything illegal, if you kick the door open to foreably insist on rent $, they won't call the cops.

 

[TexasT]

The laws must be different in the places ya'll are from. I will admit the tenants tend to tear things up, it isn't theirs, no big surprise there. What kind of fancy fixtures, wall and floor coverings are you using. maybe it needs to be scaled back. When we look you can always tell a former rental property by the wall repairs and the cheap flooring.

The non payment of rent results in eviction. This may require two months rent as a deposit for those with less than stellar credit. The constable is called and a hearing is had with the judge. I've never had a tenant show up to a hearing. The constable goes out to the property and removes the tenants. Then one can clean it up and start the process over again. Not the easiest way to make money.

Sounds like it is a good way to get the land and taxes paid for and the trailer run into the ground. Then you can owner finance the trailer and move it to the next buyers place and you can build you home there. or move it to a trailer park somewhere and rent it out there.

 

[faster]

Unless the property is going to be worth a fortune later the headaches are not worth the hassle now.

Unless you can be a slum lord then you'll be a great.

Mikey

 

[GNBRETT]

I figured out that if they are up to anything illegal, if you kick the door open to foreably insist on rent $, they won't call the cops.

LoL.... as long as they don't think ur the competition. Otherwise.....BANG-BANG. I like ur attitude tho. I have no sympathy for low life scum and theives.

The laws are there to prevent landloards from throwing tenants out on the street without cause. Unfortunately, they also protect the scumbags so they can cook up their crack rent free before finally getten evicted 6 months later.....

I'm sure in many areas of the country people are decent. I just have yet to see any of those areas that actually exist.

 

[Pronto]

Then in those "decent" areas you hear of a shooter killing his entire family and the dog. Everywhere has it issues....

 

[Little6pack]

Pronto & I usually never agree on CHIT.. But he is DEAD on!

I had a few condos back in the day! It was like having adult children.

I got a call from this DUDES girlfriend.. I said Excuse me but who are you?
I said I am renting the unit out to Chad not you!

Everytime they left it was paint, clean, remove unwanted furniture.

UNLESS you are living in the SAME DWELLING don't do it!

 

[INEEDAGN]

It would take roughly 4 years worth of rent to equal the value of the trailer itself, vs. 10 years to pay for what I still owe on the entire property. The way I see it, is if the trailer lasts that long it could be total junk and I wouldn't care because I got more money renting it than what it's worth. There's a big modern 2 car garage here as well that i'd like to keep for future storage. Hell even if I never built a house here it'd be a nice spot for my dream shop. I am expecting headaches but I could always sell it later if something else came up. The local guys I've talked to said it's not THAT bad around here. As of tonight we still don't own another house yet so I got some time to think about it. If I don't rent it out it will be vacant and guaranteed to not make me any money.

Thanks for the overwhelming support. lol

 

[Little6pack]

Why not just sell it & use money for the new place?

 

[asto-t]

I would try to rent it. What the hell the trailers 20 years old? Do your homework check their credit, make them pay toward the water bill. Dont rent to anybody with bad credit.limit occupancy.Take out the washer and dryer let them get their own..check property every 6months by changing smoke detector batteries. No pets clause..Also have a good contract agreement... I always did good

 

[2QUIK6]

You might check on filing it for Section 8 housing...if it meets the criteria. Then it becomes government housing and the government pays you directly, no dealing with the tenants for money. And usually the tenants will take better care of it because they know if they mess it up, then they could get kicked out of the program and no more govt assistance with housing. Not sure if mobil homes qualify though.

I have some rental property thats been empty for over 2 years, was a big hassle to rent, bought it for investiment only because it is highly likely to be made commercial development in the area as its river front across the street...but then realestate went bottom up so I may be sitting on it for some time. Needs too much work to become Section 8 qualified and don't want to put any $$ into it if it gets bought out later for commercial reasons. Costs about $600 a year to let it sit there, but is more of a pain to keep the yard mowed.... Needs about $8k in work to become rentable again..but again, don't want the hassle of dealing with renters...will sell as soon as I can sell it for a little profit again.

 

[INEEDAGN]

Well I put money down on another house today so I guess we got some thinkin' to do. Truthfully what I would like to see most is for someone who has a kid or two in school to move in and help the school, it's having a hard time keeping full because there is no affordable housing for young people in/around this town. If I let it sit empty I am part of the problem. My "new" house is in the neighboring town but if this school is still indepedent in 4-5 years I will drive them over here daily for them to school here. I will be driving them here for daycare anyway (6 miles).

Thanks for the input guys. The rental owners around here had mostly good to neutral things to say about the local renter crowd. So I'm still kicking it around. If I don't rent it, it sits vacant, it goes to crap, and I get no money. If I do rent it, it MIGHT go to crap, and I MIGHT get some money. Though if a good offer comes in on just the trailer I may sell it out of here too, but I doubt it.

 

[chadly]

rent it

I would definitely rent it. Land lording is not for everyone and at times it just plain sucks. Even though you are only breaking even on the property you are still paying down the mortgage. Take your time on finding a tenant. Be sure to talk with prior land lords. As far as checking credit almost every renter has bad credit. That is why they re renting. I check with prior land lords and check their criminal record as well as income. Here in Iowa the renter code changes from county to county so be sure to find out what is required to rent a property prior to renting it. I’ve got some homes that years go by and the tenants never call with any issues. Others I’m not so lucky on and of course the apartments do turn over a little more often.
Look at it this way. If the home sat vacant for 6 months and your mortgage/tax/insurance is $600/month. If it sits vacant you’ve lost $3,600. If it’s rented and they tear it up it would be tough to do $3,600 in damage. If its rented and they do no damage (most likely scenario) you’ve basically just made $3,600.

 

[regan j]

Sell

Rentors do not care. They dont have to repair anything and everything is your responsibility. Damages can easily total out what it is worth quickly and then you have to pay to have it removed. Good Luck if you rent it. Oh yeah, if it becomes unlivable ( for whatever reason ), you have a legal agreement that you will provide them with a place to reside in. Think about it. You might have to pay for them a place to live in. Contracts go both ways.
Rent to own may be better but have a good contract.