How do I know if this is a good time to rent my house out?

Q. My wife and I are considering moving and renting our house out. We know that this is a good time to buy, but is it a good time to rent our house out? Is there a lot of demand for rental homes?

A. In theory it should be a good time to rent if there is a shortage of credit and people are nervous about buying. In some places there is a glut of rental property so it's a renters market. Speak to some local rental agents and also have a good look around and see if there are lots of other properties like yours to rent in the area. Research is the key at the moment.

Original Question

Someone rented our house out to people and is collecting rent. The house does not have a Certificate of Occupa?

Q. The house does not have a Certificate of Occupancy. The co-owner's husband rented out our house to people living there.
This is entirely without our consent. What can be done?
I called the police department and they said they can send a car over and treat it as trespassing.?
The ownership is Tenants in common (I think that's the term)

A. I would call the cops on them and get the renters out of there. They are renting out the house as a long-term thing, correct? If the house hasn't been inspected and doesn't have a Certificate of Occupancy and your co-owners are renting it out, if someone who is renting it complains to the housing authorities, you could be held liable for any complaints or damages.

Contact your local building department for more specific information about what you can do.

Original Question

In a poor market, I am considering renting our house until it sells, what is the best way to go about this?

Q. We have our house on the market, but the housing market is poor right now. As an option we are considering renting until the house sells. What is the best way to go about this? Hire a management company? becoming a landlord and handling it our selves? We have to relocate as a part of this sale, we have a contingency on the home we are purchasing and do not want to lose out on that house and cannot afford 2 mortgages. Renting out our existing house seems like a potentially good option. We are not sure how to go about this if you have any ideas please suggest them. I appreciate the inout.

A. Go buy a book called tenants rights, for your state.....easy language, covers both sides, start to finish.......
youll be getting off on the right foot, and know how to handle things in a legal manner. you wont spend a better 15$.........

Original Question

Best way to run credit score for potential house renter?

Q. Hi,

Renting our house to a prospective couple, what are the best companies to use to run a credit score and what information would I need in order to run their credit score?

Thank you !

A. Google "Tenant Screening" and your area to get some companies in your area. Get the fees for it up front from the tenants making application, then it doesn't come out of your pocket.

Ask for the rates/costs. I'd go full screening so you get rental history, credit and criminal background, but it costs more. So long as the tenant pays, it's worth it. They will also mail or email you the applications to give to your applicants.

Running only credit or looking at bills won't tell you if they've been convicted of running a meth lab.

They don't actually approve or disapprove, but they can give you a recommendation.

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Is it easy to rent out a house in this economy?

Q. We're thinking about moving to another city and have considered renting our house out as oppose to trying to sell it. I wanted to get a few viewpoints on renting out a home in this economy.

A. The landlords I know have not had any problems finding tenants if the rent was comparable to others in the area. You might have to relax your standards, few people have great credit, because of the economy, many people have charge offs, bankruptcies, or other negative issues on their credit report.

Original Question

What are some things to think about before renting out your home?

Q. We are considering renting out our house but we have questions about what to do. What tax implications, if any? How to report rental income? What to do in preparation for renters?

A. First thing to consider is making room for the renters by moving out. :)

Preparation:
1) Set aside some money for maintenance. Since you've lived in the property, you probably have a pretty good idea of what annual maintenance costs have been. Add some to this amount, because renters just don't take care of the property the same as you.
2) Finish any projects on the property that you can before leaving. It just isn't as easy to work on it when there is somebody else there. The renters have rights, and you can't unduly inconvenience them. You'll also be working around all of their stuff, but you can give them instructions to clean areas and move furniture if you'll be doing work.
3) Once you are out, take some pictures of the property and rooms. These are just for liability sake in the case that you do need to prove the previous status of the building for any reason.
4) If you already are owner of a business. Quitclaim (ask your title company about the process) ownership of the property into the name of your business. If you don't have a business, ask your accountant what structure they recommend for your situation and your state.
5) If you don't already have an accountant, find one. They have a huge amount of information to provide, and many will speak to you without a fee in hopes that they will become your preparer. Think of a couple people you trust who are also involved in real estate investing. The are a lot of rosy talking accountants out there who just don't do a good job, and you can usually find a great person by a referral. Also accountants tend to differ in the way they approach taxes, and yet all can be doing a great job. If you interview more than one, don't be upset by differing opinions, just settle with the one that makes sense to you.

Tax Implications:
This is an interesting subject, and there is a lot of information to cover. You absolutely want to find an accountant who is familiar with investment properties. A few things to have on your mind:
1) Mortgage interest for an investment property is tax deductible. However, the income from the property is taxable. Typically your income is going to be higher than your mortgage expense.
2) Depreciation is an art. You can depreciate everything nearly everything in the rental: Structure, Lights, Curtains, Appliances, etc. However, there is a limit to the amount of depreciation you can show for a year unless the property is in the name of your business. This isn't usually an issue until you own a very large property or more than a few small properties. It also isn't an issue if you structure the ownership properly - A property owned by a business is under the same limitations.

As far as reporting the information goes, I would not tackle this problem yourself. As a real estate investor, you will find that you save far more money in taxes using an experienced accountant than you will by avoiding paying an accountant's fees.

Good luck!

Original Question

Ideas on how to keep garage air tight?

Q. We are renting our house but want to convert our garage into living space. I need ideas on how to keep air from entering the garage through the garage door. There are gaps between the sides of the door. Thanks!
It has to be a temporary change.

A. I've used a weather stripping kit made for overhead garage doors. Kit consists of heavy "rubber" tube-like strip which is fastened to the bottom of the door and compresses to conform to the floor's irregularities and two (I'll think of them as "fins") strips which are fastened to the door's jambs on either side and seal the gaps there.
OR: If you are dealing with an overhead door you may be able to loosen and adjust the tracks to make the door fit closer to the structure of the opening.

Original Question

Can a renter go without paying rent for 3 months after being asked to vacate?

Q. My mother gave the woman that rents our house a 3 month notice and after the 3 months were up she told my mom that she can 3 months without having to pay rent she even had the nerve to ask my mom for a recommendation after she trashed our house..
Can she have a 3 month free ride?
Oh yeah this is in Southern California
I don't be a dick just want answers. Why must everyone insist on ranting?

A. Unfortunately, yes, because your mom will have to file a formal eviction notice and it usually takes that long to get it through the court system and have the sheriff come physically remove her from the property and put her crap on the street. Apparently this tenant has done this before and knows the system.

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Can a Naval Officer rent a house from Enlisted Personnel?

Q. We are renting our house out and have an Officer who would like to rent it. Is there any policy that states that he can/cannot rent from enlisted personnel? He has not stated anything and we aren't aware of any such policy but thought I would throw the question out there and see if anyone else does. I have calls into the Command and Legal but nobody is answering their phone and I need to know ASAP.
Thanks ya'll!

A. Yes, as long as he does not receive any preferential treatment, such as a lower rent rate, and the offer to rent the house was open to everyone (officer, enlisted, civilian) then there is not any hint of impropriety.

Original Question

Is it easy to rent out a house in this economy?

Q. We're thinking about moving to another city and have considered renting our house out as oppose to trying to sell it. I wanted to get a few viewpoints on renting out a home in this economy.

A. The landlords I know have not had any problems finding tenants if the rent was comparable to others in the area. You might have to relax your standards, few people have great credit, because of the economy, many people have charge offs, bankruptcies, or other negative issues on their credit report.

Original Question

What are some things to think about before renting out your home?

Q. We are considering renting out our house but we have questions about what to do. What tax implications, if any? How to report rental income? What to do in preparation for renters?

A. First thing to consider is making room for the renters by moving out. :)

Preparation:
1) Set aside some money for maintenance. Since you've lived in the property, you probably have a pretty good idea of what annual maintenance costs have been. Add some to this amount, because renters just don't take care of the property the same as you.
2) Finish any projects on the property that you can before leaving. It just isn't as easy to work on it when there is somebody else there. The renters have rights, and you can't unduly inconvenience them. You'll also be working around all of their stuff, but you can give them instructions to clean areas and move furniture if you'll be doing work.
3) Once you are out, take some pictures of the property and rooms. These are just for liability sake in the case that you do need to prove the previous status of the building for any reason.
4) If you already are owner of a business. Quitclaim (ask your title company about the process) ownership of the property into the name of your business. If you don't have a business, ask your accountant what structure they recommend for your situation and your state.
5) If you don't already have an accountant, find one. They have a huge amount of information to provide, and many will speak to you without a fee in hopes that they will become your preparer. Think of a couple people you trust who are also involved in real estate investing. The are a lot of rosy talking accountants out there who just don't do a good job, and you can usually find a great person by a referral. Also accountants tend to differ in the way they approach taxes, and yet all can be doing a great job. If you interview more than one, don't be upset by differing opinions, just settle with the one that makes sense to you.

Tax Implications:
This is an interesting subject, and there is a lot of information to cover. You absolutely want to find an accountant who is familiar with investment properties. A few things to have on your mind:
1) Mortgage interest for an investment property is tax deductible. However, the income from the property is taxable. Typically your income is going to be higher than your mortgage expense.
2) Depreciation is an art. You can depreciate everything nearly everything in the rental: Structure, Lights, Curtains, Appliances, etc. However, there is a limit to the amount of depreciation you can show for a year unless the property is in the name of your business. This isn't usually an issue until you own a very large property or more than a few small properties. It also isn't an issue if you structure the ownership properly - A property owned by a business is under the same limitations.

As far as reporting the information goes, I would not tackle this problem yourself. As a real estate investor, you will find that you save far more money in taxes using an experienced accountant than you will by avoiding paying an accountant's fees.

Good luck!

Original Question

Ideas on how to keep garage air tight?

Q. We are renting our house but want to convert our garage into living space. I need ideas on how to keep air from entering the garage through the garage door. There are gaps between the sides of the door. Thanks!
It has to be a temporary change.

A. I've used a weather stripping kit made for overhead garage doors. Kit consists of heavy "rubber" tube-like strip which is fastened to the bottom of the door and compresses to conform to the floor's irregularities and two (I'll think of them as "fins") strips which are fastened to the door's jambs on either side and seal the gaps there.
OR: If you are dealing with an overhead door you may be able to loosen and adjust the tracks to make the door fit closer to the structure of the opening.

Original Question

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What are the laws regarding escrow accounts used for rental properties in the state of florida?

Q. We are planning on renting our house out, and know that we need to open a separate escrow account for deposit money, ect. Are we allowed to deposit the rent money into this account and then withdrawal that money to pay the mortgage or any damages or maintenance needed? What are the limitations with using that money? We want documentation of rent money being paid ect for taxing purposes, what are the laws regarding using the escrow account?
Thanks.

A. The deposit needs to be held in a financial institution in the state of Florida. If it is put in an interest bearing account then it needs to be disclosed as to who will collect the interest. You can also put it in a non-interest bearing account. The rent can be paid directly to you and you can use it however you wish. If I were you I would have an attorney draw up the lease.

Original Question

What is the proper way to ask for a dog while leasing?

Q. My husband and I have been renting our house for about a year. We plan on living here for 2-4 more years. My husband is in the Navy and leaves on deployment quite often. When we moved in the realtor said that the owner prefers us not to have a dog but, since I am home alone so often, I would like one. So my question is what is the proper way to ask?

A. Just contact the owner and tell him just what you said above, and ask if you could have a dog, and if so, what restrictions he would have (breed, size, etc.). Also offer to pay a substantial pet deposit. If he's not sure, ask him if he'd like some time to think it over and get back to you.

If you're planning on getting any of the breeds on the banned lists (pit bull, rottweiler, etc.), your chances of his agreeing are remote, so be ready to suggest a medium-to-small breed or mix that shouldn't cause any problems for him (or his insurance).

Remember you catch more flies with honey than with vinegar, so be polite and cooperative. An if he says no, then you can always decide to move as soon as your lease is up. If you're good tenants--pay your rent on time and cause no problems--he won't want to lose you.

Original Question

How to get a border off a wall without runing it?

Q. We're currently renting our house, we actually just moved in, and there is some god awful border in the kitchen. Not only that but it's on upside down. I'm not sure how long it's been there prior to us moving in but the property manager really doesn't care what we do to the house so I'm kind of wanting to remove it. I tried pulling up a small section but the wall behind started peeling off as well so I was wondering if there are any tricks to prevent this.

A. I took down wallpaper from our laundry room. It was ALL over and absolutely hideous. I went out and got DIF. It's wallpaper removed. They have spray gel and one that you mix with water. I bought them both - both worked equally well, but the spray gel was more expensive. So, go with the liquid mix. Also, there are these wallpaper removing tools. One is this small thing that fits in your fist. It has these little pricklies in it so when you move it in circles on your wallpaper, it punctures little holes in the paper so the DIF can soak in. Also, get that scraper thing (technically it's not a wallpaper tool, but works great for it). It's the scraper you use for smoothing putty/spackle on the wall.

What I did was go over it with that tool that you move in circles in your fist, spray the heck out of it with DIF (seriously, soak it), then I let it sit for 10-15 minutes, and then did the fist thing again, soaked it with DIF again, and then let it sit again. Then, I started scraping it with that tool and peeling the wallpaper off with my fingers.

Wallpaper/border removal is never fun, but I hope whatever you do is easy for you and works well! Good luck!

PS - That's so weird that the border was on upside down. Random! What were they thinking? LoL!

Original Question

Can a Naval Officer rent a house from Enlisted Personnel?

Q. We are renting our house out and have an Officer who would like to rent it. Is there any policy that states that he can/cannot rent from enlisted personnel? He has not stated anything and we aren't aware of any such policy but thought I would throw the question out there and see if anyone else does. I have calls into the Command and Legal but nobody is answering their phone and I need to know ASAP.
Thanks ya'll!

A. Yes, as long as he does not receive any preferential treatment, such as a lower rent rate, and the offer to rent the house was open to everyone (officer, enlisted, civilian) then there is not any hint of impropriety.

Original Question

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