Is my house TOO nice to rent? - Landlord Forum thread

Is my house TOO nice to rent? by Anonymous (KY) on February 14, 2012 @09:34

Hi all!

I am currently renting a home to your "average" tenant for $1250 per month. No problems with getting paid, having open communication, they keep the place nice, etc, etc...

My husband and I now have the opportunity to move to Boston, but we JUST bought a brand new home. 3500 sq. ft ranch, 4 bed, 3 bath, hardwood throughout, granite, cathedral ceilings, lawn sprinkler system, top of the line everything...drop dead gorgeous home. I really HATE to try and put this thing on the market now, plus I really don't want to part with it. We may want to move back to this are in a few years.

Our current payment is $1700 so I would want to get at least $2500 + per month to cover the cost of using a rental agency plus saving a few bucks per month to cover repairs/cleaning/painting type issues.

My questions is...is there such a thing as TOO nice of a home to rent in this economy.

[ Reply ] [ Return to forum ]

Re: Is my house TOO nice to rent? by jon (pa) on February 14, 2012 @09:55	[ Reply ]

Don't fall in love with any property. Use it as an income generator. If it can rent for a decent price, then make use of it. Screen all tenants carefully...........even those willing to pay for upscale rentals. Why take a loss selling. It does not make any sense.

Re: Is my house TOO nice to rent? by Anna Mouse on February 14, 2012 @10:07	[ Reply ]

First it does not matter how much you want to get for your home. What sets the price is the market. In your exact neighborhood what are other homes like yours renting for? If you do not know the answer you need to pretend like your trying to rent a home like yours and see what is available. Second I have a very nice home and renting is a pleasure because of the screening process and monies I require up front ect. No one gets in to see it unless they have a 700 credit score and that is only the beginning part of the screening process. If $2500 was the correct price you want to make sure that after they have a 700 credit score that one individual makes $9000 per month. Post back because I would like to help you with this decision process.

Re: Is my house TOO nice to rent?

Re: Is my house TOO nice to rent? by MrDan (Georgia) on February 14, 2012 @12:18	[ Reply ]

Professional investors have long used a rule of thumb to calculate annual rentals: You can charge at least 1.1% of the home's value up to about $100,000, or about $1,100 a month. But as homes go up in value beyond that, the percentage you can charge gets smaller, because the rental pool shrinks. So for a home that costs $350,000, you may only be able to charge .8% of value, or about $2,800 a month.

Re: Is my house TOO nice to rent?

Re: Is my house TOO nice to rent? by Anonymous on February 14, 2012 @12:25	[ Reply ]

It doesn't always hold true, but my experience is the nicer the property, the better chance you have to get a good tenant. Do your research. Make sure the tenant has the income to handle the rent. Get a good security deposit. Background check, background check, background check.

Re: Is my house TOO nice to rent? by Jake on February 14, 2012 @13:09	[ Reply ]

If you your husband can stay at his current job it will not be worth the move and what will happen to your new home while you are gone. There have been stories posted here about others who have rented out new homes to move out of town only to find their new house wrecked when they returned plus a renter months behind on the rent. If you live near a hospital, doctors and nurses will be a better bet. Otherwise, renting your home while you move out of town will be a great risk.

Re: Is my house TOO nice to rent?

Re: Is my house TOO nice to rent? by EM (TX) on February 14, 2012 @15:14	[ Reply ]

No, your home is not too nice to rent. You just have to make sure you get a great tenant, and a LARGE security deposit. There will be a little wear and tear on your home from renting it, but if you get a good tenant, it should be minimal.

Re: Is my house TOO nice to rent? by Abdon on February 14, 2012 @18:02	[ Reply ]

There are good reasons why responsible people rent instead of buy. My house is near several military bases and I'm renting it to a military doctor taking a 3-year course. My credit score is 78-something, hers is higher. If your hardwood floors are too nice, consider covering them with wood laminate floors. It is inexpensive and they will completely protect your hardwood floorings. Some systems simply float over the existing floors. Brand-new they look like the real deal and if they completely destroy them, you could recoup some of your loses and still have your hardwood floors. You could also do carpet but considering the ease of maintenance and lifespan, you are better off with the laminates. I wouldn't use a rental agency. They don't screen as good as you could. If you must use a property manager, _YOU_ should screen and rent the house, and then you could turn it over to a manager.

Re: Is my house TOO nice to rent?

Re: Is my house TOO nice to rent? by anon on February 14, 2012 @18:20	[ Reply ]

ROFLMAO Are you from Arkansas? 3500 sq ft ranch "too nice to rent"? Oh please, you're trolling, this is a joke

Re: Is my house TOO nice to rent? by Eric (MN) on February 15, 2012 @08:10	[ Reply ]

Nothing is too nice to rent. If you just bought a home, and you have a 1700 payment, why would someone rent it for $2500? Did you put a lot down? Did you get a super deal? The people that you should be looking to rent this place, should be able to buy a place. Once you move out, it is an investment, not your home. Manage it as such.

Re: Is my house TOO nice to rent?

Re: Is my house TOO nice to rent? by Anonymous on February 15, 2012 @09:04	[ Reply ]

You do realize that your potential renters pool will be limited because very few renters would what such a house, besides at that rate most would be buying.

Re: Is my house TOO nice to rent? by Anonymous on February 15, 2012 @11:27	[ Reply ]

Thanks for the reply's...most of them anyway ;) A few of you brought up the issues I am concerned about. Mainly...what are the chances of me finding a renter who has the 700+ credit score and can afford a $2500 per month payment? Why wouldn't that person already be a homeowner?? I have researched the area and believe that $2500 is reasonable for this house in this area. However, the other homes renting for that cost are actually townhomes...no yard, no yard upkeep. I believe that most of these homes are being marketed as Executive Rentals as I live very near an International Airport and am just minutes from Downtown Cincinnati. Any thoughts on marketing this as a fully furnished Corporate/Executive rental?? I am not familiar with how that works... Any thoughts are appreciated!

Re: People who would want to rent your house

Re: Is my house TOO nice to rent? by Tenn (TN) on February 17, 2012 @18:05	[ Reply ]

""I think I will do my own screening so I can know firsthand who will be renting, but definitely leave the managing to a company since I will be several states away. "" Just a thought, but it wouldn't be very difficult to manage your own property. All you would have to do is provide the tenant with a mailing address for the rent and a phone number for repair issues (your own phone number or cell). You could have a working relationship with a local contractor (or someone you've used in the past) to do repairs when needed. Also, if you have family members or are in good with your neighbors you could have them keep in touch with you (or keep in touch with them) or have them drive by on occasion to make sure things look okay.

Re: Is my house TOO nice to rent? by Pamela (Ca) on April 9, 2012 @13:29	[ Reply ]

I know this website which they give you an estimate of how much your house can rent for, they also do all the marketing for you and pre-screen and screen your tenants the website address was http://www.rentmy-house.com