Tell me about your experience as a landlord

[iamthewalrus_3]

@Fotheringay-Phipps

I agree with those who say that it’s silly to get a property manager for a single unit in your basement.The main problem with security deposits (besides for the need to set up a separate interest-bearing account - at least in NJ) is that the type of people who make the security deposit most necessary are the exact same type who render it moot by simply not paying the last month’s rent and saying to take it from their security deposit. So you’d be left in the exact position as if you would be without the deposit - trying to go after deadbeats in small claims court.

But you’d be going after them for a smaller amount, right? Smaller by the amount of the deposit.

Presumably those people, if they didn’t have a deposit, might just skip out the last month’s rent and their damages, right?

[DummyGladHands]

@DrDeth

A property manager is silly for one unit in the basement.

Make sure they are good tenants. Check references, and maybe even call a past next door neighbor.

Another possibility is to check a social group you belong to, church, clubs, Elks, etc. You might also rent for less in exchange for gardening or handyman services.

Do NOT trade rent for labor. Ever. The pay their rent in full, and you pay them for services if you like. Better not to. Don’t mix your business like that. (Landlord for over 40 years, just now selling out. )

[DrDeth]

@DummyGladHands

Do NOT trade rent for labor. Ever. The pay their rent in full, and you pay them for services if you like. Better not to. Don’t mix your business like that. (Landlord for over 40 years, just now selling out. )

What do you do for a live in property manager (which I was for nearly 20 years)? They get free or reduced rent in exchange for- labor. Standard practice.

[DummyGladHands]

Argue if you like, I would never do it. Too many possible pitfalls. Read the landlord help boards, talk to your attorney and CPA

[DrDeth]

@DummyGladHands

Argue if you like, I would never do it. Too many possible pitfalls. Read the landlord help boards, talk to your attorney and CPA

Pretty much every apartment complex in the uSA does that very thing.

[filmore]

Maybe before becoming a landlord, try renting it out as a vacation rental. Certainly that can have it’s own headaches as well, but at least the tenants are short-term. If you find it’s not working out, just take the listing down. One advantage is that you could only make the apartment available during times you will be there. If you’re on vacation or whatever, block that time out.

[iiandyiiii]

@filmore

Maybe before becoming a landlord, try renting it out as a vacation rental. Certainly that can have it’s own headaches as well, but at least the tenants are short-term. If you find it’s not working out, just take the listing down. One advantage is that you could only make the apartment available during times you will be there. If you’re on vacation or whatever, block that time out.

That soundly like a lot more work. Plus we’d have to buy a bunch of furniture.

[kambuckta]

Not as a landlord but as a tenant who lived next door to the property owners, I would never NEVER do it again. Our house was managed by a real-estate agent, we were never late with a rental payment, we kept the house immaculate yet the owners were forever watching our every movement and it was just downright creepy.

One day I came home to find them in our backyard pruning back some trees. They had not given us notice (either through the agent or just by giving us a head’s up) and it felt like a complete invasion of our privacy. Another day we had a car-full of shopping and a sleeping child so drove up closer to the front door (by moving a couple of rocks intended to keep us off the ‘lawn’) and we were roundly chastised.

We were good, quiet tenants, but felt that we were not valued as such. As soon as our lease expired, we moved out. I drive past the place fairly regularly and have noticed it has spent more time vacant than tenanted, so I guess those who leased the house after us might have had the same issues.

Good luck finding decent tenants, but do respect their privacy as well. While they live there it is their home and they have the right to feel relaxed and comfortable.

[Fotheringay-Phipps]

@iamthewalrus_3

But you’d be going after them for a smaller amount, right? Smaller by the amount of the deposit.

Presumably those people, if they didn’t have a deposit, might just skip out the last month’s rent and their damages, right?

I’m sure there are people of that sort too. But I’m talking about a mid-level non-crook who isn’t looking to outright rip anyone off, but is simply protecting himself against the possibility that the landlord will take a harder line on what constitutes damage to the apartment than he himself does. (There actually is quite a lot of gray area there.) In that case it really makes no difference.

Not that this has ever happened to me (that I recall, anyway). But I’ve heard from other landlords that it’s pretty common.

[msmith537]

We’ve had pretty good luck renting out our old 1 BR condo. But it’s in a relatively upscale area and we live in the same town, so we can just hop over to do any maintenance ourselves. It’s part of an apartment building, which has it’s own management company. The management company is only responsible for the common areas, but I can hire them to do repairs I can’t do myself. Usually we rent to young professional singles or couples. We’ve never had any problem with damage or anything like that. Our realtor finds us potential tenants and does the background checks. Usually they stay for 1-3 years, then upgrade. Usually we just let them break the lease if they want. Even though they are technically still responsible, we can rent the place out in about a month anyway.

[iamthewalrus_3]

@Fotheringay-Phipps

I’m sure there are people of that sort too. But I’m talking about a mid-level non-crook who isn’t looking to outright rip anyone off, but is simply protecting himself against the possibility that the landlord will take a harder line on what constitutes damage to the apartment than he himself does. (There actually is quite a lot of gray area there.) In that case it really makes no difference.

I see what you’re saying. Fair enough.

On the other hand, setting up an interest-bearing account takes very little time, so it still seems like it’d be worth it.

[echoreply]

@filmore

Maybe before becoming a landlord, try renting it out as a vacation rental. Certainly that can have it’s own headaches as well, but at least the tenants are short-term. If you find it’s not working out, just take the listing down. One advantage is that you could only make the apartment available during times you will be there. If you’re on vacation or whatever, block that time out.

Be very careful with doing this. Lots of cities are passing regulations to limit AirBnB and other vacation rental services. For example, you might have to still get a landlord license, but also collect and pay hotel taxes. It might (or might not) be very lucrative, but don’t just throw something up online before knowing what is necessary to avoid thousands in fines.