Real Estate: property management classes, rent my house, market, rental.

theqbaby · 08-09-2007, 08:24 AM

For the last 3 years I have been renting my home to..... (I know, bad thing) friends. As expected the friendship has deteriorated. I have asked him to vacate due to non payment.

Anyways, this property is located in South Florida. I am out of state.
I would love to sell the property but am well aware of the market in South Florida.
My "fly off the handle" reaction was to put in on the market, and now I am thinking it may be better to wait.
The stress that comes with chasing my money, is what has me thinking to hire a property manager.
Has anyone rented thier home themselves and then gone with a property manager ? What would be the benefits and the downsides. Is anyone familiar with what the fees might run ??

Thank You in advanced for your comments !

okaydorothy · 08-09-2007, 10:27 AM

I dont know. We have two properties that are rented out. One, the tenant is getting out by court order in two weeks. Like you, we are tempted to sell it, but two minutes later, rent it again. Its a tough call as the real eastate on long island is terrible.
The other property houses my business so I am there as a property manager. But as it has been for sale for 6 months now with nothing biting, we will be forced to rent it as I am relocating the business. I will be the property manager.

good luck
d

palmcoasting · 08-10-2007, 05:56 AM

Generally...and it would differ with the agency you use, the fees for finding a tenant are a month's rent. The fee for managing the property is 10% of the monthly rental. They would do a background/credit check and that fee would be charged to the potential tenant. Should a eviction have to take place you would be charged to handle the eviction.
Benefits: All tenant issues are handled. They find them, give them guidance on relocating, receive all calls having to do with repairs or other issues. The deposits are accounted for and held for you. They do an inventory of the house before anyone moves in, they take pictures regarding condition. They do the walk through before returning the deposit. They arrange for anything that needs to be done for the next tenant. They file any paperwork that needs to be filed, receive any notices. They prepare and keep records of the lease.
Downfall? It's an extra expense. You need to find one, just like as with a Realtor to purchase a house through, someone you have a rapport with, someone who follows up and has good communication skills. When it comes to repairs and such, be pro-active and insist on a couple of estimates for work that may need to be done or ask them to use people you already use in order to prevent any padding of the bill that might be going on. (Trust me, it happens)

theqbaby · 08-10-2007, 06:05 AM

Quote:

Originally Posted by palmcoasting

Generally...and it would differ with the agency you use, the fees for finding a tenant are a month's rent. The fee for managing the property is 10% of the monthly rental. They would do a background/credit check and that fee would be charged to the potential tenant. Should a eviction have to take place you would be charged to handle the eviction.
Benefits: All tenant issues are handled. They find them, give them guidance on relocating, receive all calls having to do with repairs or other issues. The deposits are accounted for and held for you. They do an inventory of the house before anyone moves in, they take pictures regarding condition. They do the walk through before returning the deposit. They arrange for anything that needs to be done for the next tenant. They file any paperwork that needs to be filed, receive any notices. They prepare and keep records of the lease.
Downfall? It's an extra expense. You need to find one, just like as with a Realtor to purchase a house through, someone you have a rapport with, someone who follows up and has good communication skills. When it comes to repairs and such, be pro-active and insist on a couple of estimates for work that may need to be done or ask them to use people you already use in order to prevent any padding of the bill that might be going on. (Trust me, it happens)

Thank You Palmcoasting !
Your post was very helpful !
Finding someone I have a rapport with, may be a problem since I am out of state. Also I have thought about the "padding" of repair bills. My husband and I , so far, have done all the repairs.
This gives me some things to think about. We do have a couple of options as far as new tenants goes, but again they are aquaitances :{. Not sure I want to venture down that road again. I am just burnt out by my present tenants.
I would really like to sell the house, and fear that if I am every going to sell it, that now is the time. (Actually 3 years ago would of been the time.)
When the time comes, I think I will explore both options.

Again Thank you for your helpful post !
q

palmcoasting · 08-11-2007, 06:11 AM

Well, finding someone you can have a rapport with just takes a couple of telephone calls really. If they answer your questions, they offer information, laugh at one of your silly jokes or sarcastic remarks, you know you can get along with them. If they follow up with you then you know you've got a good one. Something you may want to consider is to lease/purchase...meaning get someone in there that wants to purchase the house but just can't right now or doesn't want to because they want to check out the area first. Get a nice non-refundable deposit if they don't follow through with the purchase.
As for the padding of the bills, you've been handling repairs yourself you know what things should cost, so I don't see that being a problem for you.
If you need anything or want a referal to someone in your area just PM me. I'm in Palm Coast, my sister has two offices, one in Boca and one in Lk Worth. Between the two of us we'll know someone that handles it.