Re: Lease, M2M, ideal renters - Landlord Forum thread

Re: Lease, M2M, ideal renters by Anna Mouse on April 7, 2012 @11:00

What the other two suggest here is reasonable for their situations. It depends on the value of your property. Every Landlord has a different scenario given their property.

My property is higher end so the way I run it is different than I would otherwise with a different property. For this property there is no grey it is either hot or ice cold coffee, no lukewarm. Once I have screened a tenant and their credit score and income is right, then a year lease works well. I did all the work to get a person who has the type of credit and incomes why not sign a year lease. Did you realize that Colorado is one of the few states that breaking a lease is not acceptable with a pittance of 2 months’ rent? In fact in Colorado the law reads that the tenant is responsible for the whole kit-n-kaboodle! So someone who is buying a property and thinks they can just walk is wrong.

Also there are people out there who have good credit scores, good income but are not buying for reasons. For example, their debt to income ratio is poor or they are not ready to commit to a “property” for more than a couple of years.

So while they have been responsible with their credit they have not looked ahead but have been immediately gratifying themselves for some time. They are not in the position to purchase the home they "want". How they view their lifestyle, themselves and where they picture themselves does not add up in their head with what they can afford. If I were you I would play with a few of those rent vs buy calculators. If they put 20% down then they have lower payments and less insurance but need to have the 20% in savings. If they only put the 3% down they can buy less and have higher payments with greater risk to the bank therefore a large sum for insurance eats up their lifestyle.

check out http://www.realtor.com/home-finance/financial-calculators/rent-vs-buy-calculator.aspx

If the renter is finance savvy they will see that what they can rent your nice 4 bedroom home for is far less than what it costs them to buy.

[ Reply ] [ Return to forum ]

Re: Lease, M2M, ideal renters by LisaNY on April 7, 2012 @12:44	[ Reply ]

Here ( NY) buyers have also to add monstrous real estate taxes to the monthly payment. When renting a 4-BR home, the monthly payment is less than when buying the same house in the same area.

Re: Lease, M2M, ideal renters by P-Bone in WNY (NY) on April 9, 2012 @11:11	[ Reply ]

My four unit rental is assessed at around $120k and taxed, for city and school, at over $6k a year after New York State STAR. I also have insurance nearing $2,400. So that's $700 a month (roughly) in taxes and insurance. My current interest rate on my mortgage is only 2.25% (variable). So my payment is only about $335 on the mortgage itself. I'm getting slaughtered everywhere else.