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.
WHAT DOES A REALTOR DO? –
* 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.
The Charles Reinhart Company
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.
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.
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!