If You Can't Sell It, Why Not Rent Your Home?

Landlords left out of Bail out will result in less affordable rentals

Landlords have been left out of the Bail out. Just as Mortgage companies have been included because of the difficulty of single family home owners defaulting. There is as much difficulty with renters payments. There is not much difference between a mortgage payment and a rent payment.

I am a Raleigh NC Landlord and I have 5 rental unites that I purchased within the last 4 years. I paid 20% down and even more on 3 properties and I am just barley breaking even. Landlords expenses have gone up including the actual cost of the houses,the property tax was reassessed this year at higher rates than even the houses are valued at. Also Maintenance costs are higher.

Landlord use to be able to accept this in lue of an appreciation of the value of the property every year. Now we are being hit with depreciation and now outlook for appreciation prospects for the foreseeable future.

This is Bad for rent ors and Landlords because you will see a steep decline in new Landlords buying in anything but dilapidated areas and also a lot of landlords will sell off and walk away from property because its not worth it. This will mean less affordable rents. It might not happen for a few years but when it starts it will happen fast.

Or there will end up being some conglomerate that buys up property with government subsidized money to take over the Landlord business. I have contacted many officials at the Federal,state and county level and there is no help or subsidy for ailing landlords. I would like to start a movement to be included in the Bail Out that my tax dollars are going to. When I contact the mortgage companies they tell you right away that there is no help for you if you are not single family owner.

I am keeping 5 families housed and 2 are low income,while after all my expenses My son and I live on less then $800 a month. I have papers to prove it. I have spent my savings almost to nothing.

Landlords left out of Bail out will result in less affordable rentals

john Harrison of NC @ Oct 23, 2008 21:59:18 PM

credit report

Never make a decision concerning potential renters unless you personally view their credit report. Being a landlord is a lot like getting married - you want to prevent any surprises. If their cash flow, credit scores, employment background, anything - doesn't make sense, don't rent to them.

A property management service can charge a nominal fee to help you place a tenant. They are well worth it, since they know the local rental rates, have legally sound contracts, and can act as an unbiased agent in meeting the potential tenants, advertising, and showing the property.

Do practice the upmost precaution in being a landlord. There's a huge risk - a home is an expensive investment, and your financial well-being and peace of mind are priceless.

DLB of CA @ Oct 13, 2008 00:40:10 AM

Put most weight on previous residences; current landlord wants out

1) put the most weight on previous landlord, not current they might want out of a bad situation

2) Inspect the home periodically

3) Video tape the shape of the rental property this takes time

4) rental management companies - will basically just collect the rent check

Tenants: Make sure the house is not near foreclosure, your deposit and rent is then forefeit.

Vaccum carpet with a top rated vaccume prior to signing lease, with new filter - tear open bag after vaccuming -- you would not surprised at what you will find

been there done that of FL @ Oct 11, 2008 22:27:45 PM

Fine for all of you so situated. But DO NOT let your renters own pit bulls to terrorize your neighbors. You can find yourself uninsured for extreme liability.

I have had to fight this with some folks next door who decided to rent the place out.

They were formerly nice people who, when they became landlords, suddenly didn't give a darn about anything. Beware. Tattling to the local paper and the insurance agent WORKS.

of @ Oct 10, 2008 16:47:12 PM

had to become landlords accidentaly

Great article. After having our home on the market, we've decided that it just did not pay to sell at such a bad time. Hopefully we can wait out the market and sell in a few years. Luckily we are not in foreclosure...yet. So we researched renting on the internet and found the Landlord Protection Agency ( www.theLPA.com) and joined. We learned how to screen tenants with a rental application, how to show the property, how to order a credit report and best of all how to prepare a solid lease agreement. The site educated us enough as landlords that we are considering owning more houses and renting them out. I think Danielle Babb has an accurate view of what is going on and how to deal with it.

Debra V of NY @ Oct 10, 2008 07:18:54 AM

Great advice

We are military and "had" to move out of the country immediately. There were no offers on our house, it was on the market for three months. We got a property management company to manage. there were some small fees and a monthly 10% but it is worth not having to pay a full other house payment. Also, we could not get the full amount of mortgage pymt and had to cut it by $100 a month plus the $100 mgmt fees, but it was the smart thing to do with the housing market status. We got a renter quickly in Tx. hopefully if the market gets better we can eventually sell it.

Val of TX @ Oct 10, 2008 01:25:46 AM

Whoops

I thought I was forwarding the article, not commenting on it. But we are having trouble finding tenants for a rental property when, in a foreclosure market, we expected a relative flood of applicants.

Gor of WA @ Oct 09, 2008 17:09:10 PM