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ann arbor mi…, Real Estate Pro in Ann Arbor, MI

Can't sell my condo, thinking of renting it out. What is the process, what are the important factors to consider?

Asked by ann arbor michigan, Ann Arbor, MI Fri Jan 21, 2011

What are the advantages of listing a rental thru a real estate company as opposed to on my own via craigslist? How much do realtors charge to find a renter? How much do property mgmt companies charge to manage a rental for someone in their absence (we are relocating out of state)?

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If you cannot sell your condo, renting is an option to consider. But first, a few facts:

TAXES - As an owner occupant of your present residence, you are privileged to a tax rate which is 30 percent lower than that of a non-owner occupant. Typically, you can only claim one residence as your principal residence, and you must live in it.

RENT - Your condo will only rent for true market value – not what you “want” to get in rent. Consider what you will be paying in principal, interest, taxes, insurance and your monthly association fee and decide if that amount will be covered by your rental rate.

DAMAGES – You can only collect 1.5 times the monthly rental rate for a security deposit.

ASSOCIATION – Ask your condo association if they permit rentals. You will also be responsible for making sure that your tenant abides by the association rules.

MANAGEMENT – since you will be relocating out of state, you will want a professional to manage your rental. The typical cost is 10% of the monthly rent. Edward Surovell Realtors offers the following professional services, and I can help you with this:
* Inspect the property and consult with the owner.
* Recommend a rental rate, security deposit and lease terms.
* Advertise and seek tenants.
* Briefly interview all prospects prior to touring the property.
* Conduct showings of property to prospective tenants.
* Verify prospective tenant credit history and reference.
* Prepare and execute the lease with specifications to the individual property owner.
* Collect all rents and enforce collection of rents.
* Collection of security and other deposits.
* Move-ins and move-out inspections
* Take legal action on your behalf if necessary to collect past due rents or evict tenants.
* Pay mortgage, insurance, taxes and utilities if requested.
* Lease renewals.
* Maintenance requests, including emergency maintenance.
* Code work to meet governmental requirements for Certificates of Occupancy.
*Supervise maintenance repairs.
* Provide monthly and year-end statements of income and expenses.
* Contracting by bid and supervision of major improvements and repairs to property.

CRAIGSLIST vs. REALTOR – you can certainly list your condo yourself on Craigslist, however for the little amount it will cost you to use a professional, full-time Realtor, it will save you a lot of hassle, responsibility and worry. The typical cost is 1-months rent which is then split between your Broker and the Broker who brings you the tenant.

* Lists your condo on the Multiple Listing System (MLS )
* Lists your condo on so many websites that they are too numerous to list here (including Craigslist) . . .
* Screens and qualifies potential tenants. Most of the time, the showing will be by a Realtor who sees your condo rental listing on the MLS. Your Realtor will verify their license to assure that they are an active, licensed Realtor, as well as pre-qualify the prospective tenant.
* I hold my rental listings open on a regular rotational basis. I have had good luck with this.
* Once a tenant is found, prepares all necessary paperwork to bring the lease to closing, interfacing between all parties and consulting you every step of the way.
* Stays with you after the sale/rental to assure that all of your needs are met.

I hope this help. If I can be of further service to you, please contact me via Trulia or my website.
Web Reference: http://ReneeBadall.com
2 votes Thank Flag Link Sat Jan 22, 2011
Good afternoon. Beside the comments below, I would like to add that we can get your unit rented for you and handle the credit checks, lease, disclosures and check-in and out paperwork. We can advertise in the MLS for you. To give you an idea of what other similar condos might be renting for, feel free to stop by my website listed below and click the link for "All MLS LIstings" and then the one for renters. I have been in property management and sales for twenty years and look forward to answering any further questions you have and hopefully meeting you in person.
1 vote Thank Flag Link Fri Jan 21, 2011
Rent it out using craigslist. Craigslist is free and is the central hub for tenants. Have them fill out an application form.
0 votes Thank Flag Link Sat Feb 5, 2011
Before turning it into a rental property you may want to talk with a lender. You may have to "cover" 100% of the mortgage (and not be able to deduct the rental income) if you do not have at least 30% equity in the Condo.
0 votes Thank Flag Link Sun Jan 23, 2011
Where is your condo? I have a buyer looking to buy a condo but haven't found one yet. She is a professional woman working at UofM so two or three bedrooms condo will fit. Let me know if your condo fits the criteria, maybe we can talk. Contact me by email at PHuang@reinhartrealtors.com. If you have photos or the old listing that will be even better. Thanks.

Pei Huang
The Charles Reinhart Company
Web Reference: http://www.Pei-Realtor.com
0 votes Thank Flag Link Sat Jan 22, 2011
I would advise you to interview two agents in your area.
They can answer your questions on the spot.
0 votes Thank Flag Link Sat Jan 22, 2011
Contact a R.E agent that specializes in renting (and possibly managing) your unit. This is very inexpensive, and it will save you money/time in the short & long-run.
0 votes Thank Flag Link Sat Jan 22, 2011
I have some major concerns with temporary rentals. More often than not, I have seen homeowners heartbroken over the condition in which their property was returned to them.

Renters cause wear and tear on the property that can easily exceed any proceeds from the rent. I have listed many properties after they were rented for a year or two. At a minimum, they needed to be painted, but many had stained carpet, a fixture or two broken, lots of cleaning to do. Then there is the ordinary wear and tear, aging of appliances, to take into consideration.

Renting your condo out is not an easy solution by any means. The only reason I can see for doing it is if your property is already in a worn and dated condition, or you can justify it as a financial investment.

Condos are selling in Ann Arbor. If yours has not sold, review your price and the condition and appearance of your property with your Realtor. Are you getting showings? What is the feedback?

If you are in the same position as many property owners, and owe more on your condo than you will clear from the proceeds of the sale, talk to your Realtor and your bank about options that may be available to you. They may be very willing to allow you to take out a loan for the balance owed.

If you do not currently have representation, feel free to call me or email me through my website. I would be happy to help you.
Web Reference: http://www.joannbarrett.com
0 votes Thank Flag Link Sat Jan 22, 2011
If you want to rent and not sell, that is fine. Rentals in Ann Arbor are in hot demand. You can rent it on craigslist but you will get better qualified tenants if you work through a licensed Realtor. We take an application for your review, check references, and get a credit report.
We have leases that are signed.
Are you going to still live in Ann Arbor? Is it in the city?
If so then there are extra forms required for the City of Ann Arbor, you must have a Designated person that lives within 25 miles of the condo to be available, in the event the tenant needs attention. Not a problem, we have a licensed builder who works with us, if something needs attention in the condo.
The commission is one months rent, shared between the listing agent and the buyer agent, with both getting 1/2 months rent.
A management company charges based on the services you ask for, it is a portion of the rent every month.
We can set it up for the tenant to deposit straight into your account on the 1st of every month.
Any more questions, feel fee to give me a call.
0 votes Thank Flag Link Fri Jan 21, 2011
Rentals are very busy right now, I may have a possible tenant for you, feel free to call or email! 734.761.9666
0 votes Thank Flag Link Fri Jan 21, 2011
I have exp. managing my own Rentals over the yrs. and i will say Without hesitation, you Do Not want any part of managing your own property from out of State! It can be done, but the opportunity for failure is too high... It is a Business and must be considered as such. Getting personally involved opens the opportunity for you to make emotional decisions. When signing a Contract, collecting Rent and when terminating a Lease... -That will Not be in your Best interests. Not to mention, if you are out of State You virtually have No Leverage to collect, repair or evict...

I would check into 2-3 professional management Co's and interview them. Do your Home work (Due deligence) and you'll be able to make a wise decision that you will allow you to sleep peacefully @ night!

There are Many, many ways to find AND KEEP Good renters. The Most important is to do a Non refundable Credit and Backround check. (this will weed out most of the undesirable Crowd...) 2nd, Do Not try to get Top Dollar for your place. Or you will develope a "Revolving Door of tenants"! Renters are Not Dumb. Charge too much, and they will always be Looking for a better Deal... Charge Less and they will never want to leave!

Best of Luck to you!
0 votes Thank Flag Link Fri Jan 21, 2011
There are quite a few factors to consider. One, your taxes will increase because it will become non-homestead. Two, you are now a landlord and responsible for what your tenants do to the place and if things break, you often have to fix them. Three, will your complext allow a rental? Some wont, but it is a good thing to ask. I have worked with a lot of sellers in your exact position, and if you are moving out of state, you need someone with a real estate license to manage it. In my experiance, going through a real estate company will get a tenant quicker due to the increased exposure, but craigslist is still viable. The key is screaning the tenant, which is hard. Property management companies will vary in costs, but I would call around to a few to check out their prices. Also ask them about maintenance issues and how they are taken care of. That is the biggest expense you wont think about, and where many property management companies make most of their money. Feel free to give me a call if you have any more questions. David McNamara - Foxway Realty - (734) 476-9768
0 votes Thank Flag Link Fri Jan 21, 2011
First check whether your condo by laws permit rentals. Most do, but may ask for at least a year. A Realtor will make sure that the tenant gives you credit/emplyment information so you may make an informed decision. The Realtor can draft the lease and give you other necessary docs. Fees are negotiable between you and your agent. If you are leaving the state I'd recommend a management company - they collect rents, pay your bills, THEY get called in the middle of the night, not you. Again fees vary. If you contact me, I can put you in touch with Coldwell Banker's management company. They handle many many leases. If you are never coming back and a job takes you away, perhaps a short sale should also be considered. I've had success with Craig's list, but hard to separate the good from the bad.
0 votes Thank Flag Link Fri Jan 21, 2011
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