Home Buying in Dallas>Question Details

Justin, Home Buyer in Dallas, TX

What is a typical daily rental fee for sellers temporary residential lease?

Asked by Justin, Dallas, TX Thu May 1, 2008

A counter offer I received from the seller offered a $25/per day rental fee. This seems rather low but being this is my first house I'd like some opinions on what a typical cost should be. Thanks.

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Justin,

My advice to my Buyer clients is to divide your total mortgage payment...including principal, interest, taxes and insurance (PITI)...by 30 days and this will be the Sellers daily rate. Also, be sure and ask for a daily holdover rate in the range of $100 to $200. This will hopefully prevent the Sellers from staying in the property for longer than the term of the lease. The fee for this temporary lease...daily rate X # of days plus any deposit you may want to charge...is due to you in total at closing...not at the end of the lease. Also, be sure and do a walk-thru prior to closing AND a walk-thru just prior to the lease termination date. Hope this helps.

Please feel free to call or email if I can assist you in any way.

Best regards and good luck with your home purchase.

Alan Wynn
Like NO ONE Else!
214.729.5582
info@DallasHousesOnTheWeb.com
1 vote Thank Flag Link Thu May 1, 2008
Everyone seems to have a different opinion of this. I really don't like leases as they can create considerable problems for both parties. If both sides agree to a lease, in my opinion it should be valued at the cost ....principal, interest, taxes, insurance. As a buyer, I would want the sellers out of the house when you close. That way you can do a walkthru and ensure everything is as you expected. Cleaned, painted, no holes in the walls, grass cut, etc. If it is not as you expected then you can hold up closing until it is done. If you close and lease back to seller and then find these issues when you get in, there's not a lot you can do to force the issue. Also I've seen sellers who are not ready to move.....what happens if they have no place to go, what happens if their new house is not ready or they can't close on it. They'll want to camp on you. That is typically not worth the hassel.....at $25 or $50 or $100/day .
Web Reference: http://www.teamlynn.com
1 vote Thank Flag Link Thu May 1, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
I would take your realtors advice, sounds like he or she is doing the right thing. That would be very close to what I would be doing if it were clients of mine.
0 votes Thank Flag Link Thu May 1, 2008
Justin,
As Naima stated each state is a little different in the forms and they use and some nuances in the real estate law. What I am referring to is a North Carolina form. But, you do need something to make sure that there is a clear definition of liability. Plus you will need to perform another walk through since you will be then taking possession.
0 votes Thank Flag Link Thu May 1, 2008
I would suggest whatever the buyer is paying in PITI for that time period; plus, I would consider a refundalble deposit in case of any damage done while they are still in the house. There are several optiions, and it just depends on what they buyer and seller can agree on. Melinda James, The Laughlin Realty Group.
0 votes Thank Flag Link Thu May 1, 2008
Yes Justin, your agent is correct, it is a typical custom and simply negotiable just like any other item in the offer. You can just put in the space (PITI) and the actual amount will be prorated, or if you want a cusion, you can add a little to it.

The fom Larry refers to isn't used in Texas, all the terms are highlighted in the form you're using.
Web Reference: http://www.sumnerrealty.com
0 votes Thank Flag Link Thu May 1, 2008
Are you refering to the TAR-1910 TREC No. 15-4 "Sellers Temporary Residential Lease"?
0 votes Thank Flag Link Thu May 1, 2008
Justin,
Alan's answer is correct. Did you fill out a seller's possession after closing addendum? Usually you have to have the addendum to release each party from liabilities during the period of time that you close and the seller is not gone. Legally the home now belongs to the buyer and with that the liability. So if someone gets hurt on the property it is now the new owner's liability. As far as the rent Alan is correct with simply taking the mortgage payment and dividing by 30. Although as the buyer you can charge whatever you want. I had a buyer charge 200 for one day just because the deal had gone a little sour at the end and he was in the driver's seat.

Larry Story
Coldwell Banker Triad
0 votes Thank Flag Link Thu May 1, 2008
I do have a realtor. She says that it's customary to give a couple days after closing for the seller to move out. In the counter offer they said for 2 days they'll pay $25/day and after that $200/day. The way I read this is that they're probably already planning on needing a couple of days.
0 votes Thank Flag Link Thu May 1, 2008
where is your real estate agent what do they state? I am hopeful you are not purchasing a home without a realtor involved.

When there is a lease back for a seller in a home few suggestions:
a) Monthly mortgage payment, tax, insurance divide by 30 days to determine the lease back
b) Not knowing how long the seller wants to remain, I could recommend $100 per day
c) Do you have a deposit so if the seller does not move out you maintain their deposits?
d) There is an art for the leaseback to confirm the buyer is not placed in a difficult situation, once the real estate purchase is closed all the realtors frankly can walk off leave you the circumstance too deal with it on your own
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Thu May 1, 2008
In our area it is normal to use the per diem of the Buyers new loan. If it is just for a day or two after closing there is usually no charge or deposit. Thanks, for asking.
0 votes Thank Flag Link Thu May 1, 2008
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