In the Fall of 2007 we bought a new house and instead of selling our old house we decided to try renting it out first. We had no experience with either end of renting. Aside from 6 months that we rented a condo when we were newlyweds, we have either lived in military base housing or owned homes. As any 21st century person who is plugged in would do I turned to the internet for laws, advice and forms.
We had 19 years of accumulation and wear and tear so there was much work to be done, mostly cosmetic, and so much cleaning and clearing, oh my! We put out for rent ads, interviewed prospective tenants and became scared s***less. We saw all kinds of people. People with kids, people with dogs, people with alcohol on their breath at 10 am, people who tried to negotiate rent, people who just wanted to rent one room, people who are on Section 8 (government covers rent) who wanted us to lie about the amount of rent, the list goes on and on.
So we put the house on the market and the market died. To say we were unhappy with our agent/banker would be an understatement and is a post for another day. With much apprehension we put the house back up for rent.
This time we got lucky, very lucky. We found a woman, Susan, who needed a home just like ours to move in with her ailing mother, Gladys. Susan wanted space for her mom and a separate space for herself to have some privacy. Since the house has a full daylight basement with living room, bedroom and bathroom it was perfect for her. They moved in and immediately wanted to change it, good changes. She wanted to paint everything a neutral color, put shelves in the garage and install a gas fireplace for her mother to enjoy. She also hired a gardener to keep up the yard. We loved her, she loved us.
When we went over to do maintenance on the house we would sit with her mom on the deck and chat with her, she was a very sweet lady. Gladys thought Handy Man was THE Handy Man not the landlord. She didn't know they were renting the house she thought they bought the house. We played along.
Gladys died the first part of March. Her health had taken a bad turn after the first of the year. Susan let us know she wasn't doing well, so we knew it was only a matter of time. It was a blessing that she passed and was relieved of the pain she was in. Now Susan wants to move on with her life. She's a single woman and wants to buy a small house, our house is too big for her. She's willing to honor her lease, which isn't up until the end of November, but would like us to make moves to find a new renter. We really want her to be able to move on so now we have decisions to make.
Our original plan was to put the house on the market next spring. Now we have to decide if we want to to put in on the market now, or keep it and try to try to refinance our primary residence which has high interest rate compared to what's available now. It's possible we owe more on our primary residence than what it would currently assess at. Selling the rental would allow us to pay down some of the primary mortgage so we could refinance. However we would love to keep the rental for retirement purposes. It will be paid for in 9 years well in advance of retirement. But will we find a responsible tenant? We know we've been spoiled with Susan and her mom. So many decisions!
We have appointments set with a real estate agent and a refinance company. I'll keep you posted...
Friends with a home in CT were renting it but after the last tenant sublet it to someone else without notifying my friends they decided it was easier to close it up for the winter and re-open it and use it in the summer ...
We have my parents condo in FL which we pay maintenance and taxes and yearly condo assessments .. sigh .. we put it on the market right before Katrina and the 3 subsequent hurricanes that put South Florida real estate into the toilet ... and the rules of the condo only permit rental for 4 weeks . .no one goes to FL for just 4 weeks in the winter ... so it sits empty ..
And so I feel for you and with you ... good luck!
BTW .. did you if you buy a St Joseph statue and bury it upside down in the front yard the house will sell faster .. would I make this up ... http://www.stjosephstatue.com/
Posted by: Daryl | April 16, 2009 at 07:34 AM
Good luck! I hope everything just falls into place for you!
Posted by: The Incredible Woody | April 16, 2009 at 07:57 AM
Good luck! And I'll have to try the statue on my gradnpa's house. My mom's trying to sell it.
Posted by: Meg | April 16, 2009 at 11:49 AM
Those are tough decisions...but I get such a kick out of our nice Jewish Girl Daryl knowing all about that St. Joe thing!
Posted by: Mental P Mama | April 16, 2009 at 12:04 PM
I am currently trying to decide if we should rent our California house while we move to Oregon. We will not sell it until prices recover. I am afraid of the whole tenant thing, there are so many freaks out there. Most likely my house will remain empty, I don't think I can handle being a landlord.
Posted by: noble pig | April 16, 2009 at 05:09 PM
This market has got a lot of people having to make it up as they go. Good luck with whatever you decide.
Posted by: Jenn @ Juggling Life | April 16, 2009 at 09:49 PM