OT - need advice
Occasional poor taste poster
Thread Starter
Join Date: Jul 2005
Posts: 2,542
OT - need advice
Ok so I mentioned before about possibly renting out my basement. I placed an add in craigslist and now I have people responding to my add that are interested in it!!! (why am I shocked at that! LOL!!!) I'll be very picky over who I would rent to for lots of reasons, and I'm not even sure I'm going to go through with this TBH.
I don't really NEED the money but it would sure go a long way to getting my medium and long term financial goals back on track.
Never having been a "land lord" before... any advice on questions or stuff like a rental agreement in writing?
I don't really NEED the money but it would sure go a long way to getting my medium and long term financial goals back on track.
Never having been a "land lord" before... any advice on questions or stuff like a rental agreement in writing?
Member
Join Date: Jul 2006
Location: still looking
Posts: 128
Jazzman,
I've never been a land lord either. The best advice I can give you is to be VERY careful about who you rent to . Get references, check credit history etc. From what I understand it can be very hard to evict someone once they are in so be careful.
Also keep in mind that the rental income is taxable. Is the unit on seperate utilities? Any direct expenses would be deductible. If you take depreciation you may have to pay some tax if you ever sell you home.
BTW-- I love your photo. Where was it taken?
I've never been a land lord either. The best advice I can give you is to be VERY careful about who you rent to . Get references, check credit history etc. From what I understand it can be very hard to evict someone once they are in so be careful.
Also keep in mind that the rental income is taxable. Is the unit on seperate utilities? Any direct expenses would be deductible. If you take depreciation you may have to pay some tax if you ever sell you home.
BTW-- I love your photo. Where was it taken?
Occasional poor taste poster
Thread Starter
Join Date: Jul 2005
Posts: 2,542
Rental income taxable?!?!? I remember reading that but forgot! See.. good idea to bounce this off you guys!
The pic is from Bora Bora, paradise on earth! If you ever get a chance to go don't turn it down! Or any place in French Polynesia for that matter! Here's the link from the hotel I stayed at...
http://www.boraboralagoon.com/web/ob...a1a_splash.jsp
hint, go during the off season, Jan. or Feb. and tell them you're on your honeymoon, they'll upgrade you to an over water bungalow for free!
The pic is from Bora Bora, paradise on earth! If you ever get a chance to go don't turn it down! Or any place in French Polynesia for that matter! Here's the link from the hotel I stayed at...
http://www.boraboralagoon.com/web/ob...a1a_splash.jsp
hint, go during the off season, Jan. or Feb. and tell them you're on your honeymoon, they'll upgrade you to an over water bungalow for free!
Member
Join Date: Dec 2003
Location: Sussex, NJ
Posts: 1,331
My sister and her husband have a few rental properties. They've been burned a few times and now they run background checks and credit reports on everyone interested in renting from them. It's a shame it has to come down to that.
Member
Join Date: Oct 2004
Location: uk
Posts: 3,054
Always get something in writing and check references carefully even if you rent to a priest!!
Short of that after having had 3 lodgers in total, 2 great one a pain in the ass - I'd suggest being relaxed and friendly especially in the interview so that you get the best possible 'feel' for them. Making the boundaries clear is good too, do you want them to be welcome to knock on your door for milk or if the shower won't work? Try and think of a few grey areas to see how they react and how you feel about where you want the boundaries to be.
Other than that - good luck, personally I think sharing accomodation is a fine skill to learn in assertiveness, tolerence, compromise, and resolution to problems. I've shared houses nearly all my life and wouldn't swap the experience for the world - even the bad bits!
Short of that after having had 3 lodgers in total, 2 great one a pain in the ass - I'd suggest being relaxed and friendly especially in the interview so that you get the best possible 'feel' for them. Making the boundaries clear is good too, do you want them to be welcome to knock on your door for milk or if the shower won't work? Try and think of a few grey areas to see how they react and how you feel about where you want the boundaries to be.
Other than that - good luck, personally I think sharing accomodation is a fine skill to learn in assertiveness, tolerence, compromise, and resolution to problems. I've shared houses nearly all my life and wouldn't swap the experience for the world - even the bad bits!
Its_me_jen
Join Date: May 2004
Location: Salina, Ks
Posts: 8,547
I would pay for a background and credit check for sure! You should be able to find a good rental agreement online somewhere. Hold on....I'l go look......
Here's an application ----->http://office.microsoft.com/en-gb/te...014421033.aspx
Here's a credit app ----->http://office.microsoft.com/en-gb/te...184631033.aspx
Other Misc. forms ----->http://office.microsoft.com/en-gb/te...468811033.aspx
This is assuming you use MS Word. Let me know if you don't. I can send you PDF's.
Here's an application ----->http://office.microsoft.com/en-gb/te...014421033.aspx
Here's a credit app ----->http://office.microsoft.com/en-gb/te...184631033.aspx
Other Misc. forms ----->http://office.microsoft.com/en-gb/te...468811033.aspx
This is assuming you use MS Word. Let me know if you don't. I can send you PDF's.
Member
Join Date: Jan 2006
Posts: 1,358
Where I live you need to have a certificate of occupancy for a fee (usually the renter pays that) so you have to make sure the area you are renting out complies with all the safety compliance issues beforehand (smoke and carbon monoxide detectors come to mind). And yes, at least where I live rental income is taxable.
Most definitely have a written lease. I'm sure there must be sample leases on line for your state. Also factor in utilities in the cost.
Then there are little things, like will you allow them to paint or not, pets, will you allow overnight visitors, quiet time hours specified, if you have a yard, will they be allowed to use it, etc. lots and lots to consider. Also, you'll be giving up some of your privacy...that is something to think about as well.
Like others suggested, a background check, recent references from where they rented before, a thorough credit check, place of employment....the list goes on and on of things for you to consider.
Most definitely have a written lease. I'm sure there must be sample leases on line for your state. Also factor in utilities in the cost.
Then there are little things, like will you allow them to paint or not, pets, will you allow overnight visitors, quiet time hours specified, if you have a yard, will they be allowed to use it, etc. lots and lots to consider. Also, you'll be giving up some of your privacy...that is something to think about as well.
Like others suggested, a background check, recent references from where they rented before, a thorough credit check, place of employment....the list goes on and on of things for you to consider.
Occasional poor taste poster
Thread Starter
Join Date: Jul 2005
Posts: 2,542
Originally Posted by minnie
I'll take it!!!
If you can get me a job with green card sponsorship as well.
If you can get me a job with green card sponsorship as well.
Originally Posted by PaperDolls
You should be able to find a good rental agreement online somewhere. Hold on....I'l go look......This is assuming you use MS Word. Let me know if you don't. I can send you PDF's.
Originally Posted by ICU
Where I live you need to have a certificate of occupancy for a fee (usually the renter pays that) so you have to make sure the area you are renting out complies with all the safety compliance issues beforehand (smoke and carbon monoxide detectors come to mind)..
Maybe I can just get Sarah to loan me 30k... LOL!!!!
(Sorry Sarah, bad joke)
Living in a Pinkful Place
Join Date: May 2006
Location: Louisiana
Posts: 7,545
Jazzman,
Looking at renting from a tax preparer's viewpoint, there are pros and cons. Yes, the income will be taxable, but you may be able to deduct some of these expenses (advertisement, legal expenses, upkeep, rental insurance etc) If you have a professional tax preparer, you may want to talk to them about how this will affect you taxes for the 2006 tax year.
I work for one of the major tax and financial services companies. Not sure if it's ok to mention the name of the company (don't want to promote or endore a specific company) But a few of those types of companies are open year round and will answer your tax and financial questions free of charge.
Let me know if you have specific questions - I may be able to answer some of those for you - if not I'll be glad to do some research for you,
Good luck,
Rita
Looking at renting from a tax preparer's viewpoint, there are pros and cons. Yes, the income will be taxable, but you may be able to deduct some of these expenses (advertisement, legal expenses, upkeep, rental insurance etc) If you have a professional tax preparer, you may want to talk to them about how this will affect you taxes for the 2006 tax year.
I work for one of the major tax and financial services companies. Not sure if it's ok to mention the name of the company (don't want to promote or endore a specific company) But a few of those types of companies are open year round and will answer your tax and financial questions free of charge.
Let me know if you have specific questions - I may be able to answer some of those for you - if not I'll be glad to do some research for you,
Good luck,
Rita
Member
Join Date: Jul 2004
Location: Starting over all over again
Posts: 4,426
Hey Jazz, check out this website for all kinds of info on renting out a room
http://www.nolo.com/resource.cfm/cat...B66A9/213/178/
Mike
http://www.nolo.com/resource.cfm/cat...B66A9/213/178/
Mike
Occasional poor taste poster
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Join Date: Jul 2005
Posts: 2,542
Originally Posted by minnie
Would you?
Rita, Mike... thanks guys! What a support group!
Member
Join Date: Dec 2004
Location: Chicago, IL
Posts: 2,333
Jazz I can't believe you didn't PM me...seeing that I have been in
real estate property management since college...100 years ago!
I also owned rental property for a number of years.
First I would have an application completed, you can get them at
Office Max. I would spend the money for a credit report, verify pervious
rental history, get receipts if they rented from someone other than
a professional management company. (I have found renters will lie
saying they rented from relatives then later found out they were evicted.)
Get one months full rent for a deposit in addition to the monthly rent.
Since it is only one unit you are renting you can be selective, as you
are not required to follow fair housing regulation for units under 12
( Illinois law anyway.) I know when I rented my own property I was
extra selective. after all it was MY money......LOL
Good luck being a landlord isn't all it's cracked up to be...IMHO
real estate property management since college...100 years ago!
I also owned rental property for a number of years.
First I would have an application completed, you can get them at
Office Max. I would spend the money for a credit report, verify pervious
rental history, get receipts if they rented from someone other than
a professional management company. (I have found renters will lie
saying they rented from relatives then later found out they were evicted.)
Get one months full rent for a deposit in addition to the monthly rent.
Since it is only one unit you are renting you can be selective, as you
are not required to follow fair housing regulation for units under 12
( Illinois law anyway.) I know when I rented my own property I was
extra selective. after all it was MY money......LOL
Good luck being a landlord isn't all it's cracked up to be...IMHO
Searching and tripping
Join Date: Sep 2004
Location: Back in my head
Posts: 1,194
Jazz...I just jumped down here without reading everyone's post, so if anyone suggested something similar, my apologies.
My husband's uncle would talk to prospective renters and tell them he'd get back to them. He would then go to their current place of residence and check it out. If it was a pig-sty...no way. If it was neat, clean and organized, he would let them rent his place. He went so far as going up to the door and knocking and hoping to get invited in. If they wouldn't let him go in, he immediately told them that he was in the neighborhood and wanted to stop by personally to tell them that it was already rented.
A good way to screen people is to see how they are currently living. I know you're a perfectionist with your home; why not make sure you rent to someone who is going to respect that.
Also make your specifications known...no smoking, no pets, no kids, no parties. And also state that if they do not adhere to the contract, they can be immediately evicted. Don't know how legal that is, but it would be breaking the contract they signed with you.
One more thought. Make it a requirement that they provide their own rental insurance. And up the value of yours.
My husband's uncle would talk to prospective renters and tell them he'd get back to them. He would then go to their current place of residence and check it out. If it was a pig-sty...no way. If it was neat, clean and organized, he would let them rent his place. He went so far as going up to the door and knocking and hoping to get invited in. If they wouldn't let him go in, he immediately told them that he was in the neighborhood and wanted to stop by personally to tell them that it was already rented.
A good way to screen people is to see how they are currently living. I know you're a perfectionist with your home; why not make sure you rent to someone who is going to respect that.
Also make your specifications known...no smoking, no pets, no kids, no parties. And also state that if they do not adhere to the contract, they can be immediately evicted. Don't know how legal that is, but it would be breaking the contract they signed with you.
One more thought. Make it a requirement that they provide their own rental insurance. And up the value of yours.
Member
Join Date: Dec 2004
Location: Chicago, IL
Posts: 2,333
Kathy that is an absolute perfect idea in theory...lol
I manage and have managed in excess of 3500 units at one
time.....I can just imagine checking up on all of those applicants....
I would be one tired "Ethel Merts.....I meant Mertz.....lol"
I manage and have managed in excess of 3500 units at one
time.....I can just imagine checking up on all of those applicants....
I would be one tired "Ethel Merts.....I meant Mertz.....lol"
Occasional poor taste poster
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Join Date: Jul 2005
Posts: 2,542
Well I'm seriously having second thoughts here... but I'll at least interview some folks that respond. I did live w/ roomies way back when I was a young buck so I clearly remember the loss of privacy. And I'm approaching a Phelix Unger type neat freak... I dunno...
I had an obviously young guy respond saying that he and his bro are really interested in renting my basement... two dudes? No way!
I had an obviously young guy respond saying that he and his bro are really interested in renting my basement... two dudes? No way!
Member
Join Date: Mar 2005
Location: Arizona
Posts: 928
I'm thinking the newly divorced/separated market...
Newly divorced dads need a place to crash...
I read about someone here in AZ that was renting their house as a "crash pad" for newly divorced dads..
Newly divorced dads need a place to crash...
I read about someone here in AZ that was renting their house as a "crash pad" for newly divorced dads..
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