If you have any concerns or questions you can reach out to me at 320-253-0354 or Steve.Cash@results.net or visit http://www.SteveCash.net
If you don't end up hiring a property manager for your home you should consider getting a damage deposit from your renter (usually equal to the amount of rent) and write a clause in your leasing contract regarding how deposits are handled.
Usually, deposits are received with first month's rent at the time of move-in. You do a move-in inspection with your renter about any minor damages to the home before they move in. You each sign the inspection. When your renter moves out, you do one last final inspection, if there is just normal wear and tear, the renter gets their deposit back within 21 days after they move out. If there is damage, just charge for whatever needs to be fixed, and make sure everything is in writing!
For more information a great tool to have is the MN Landlord and Tenants Rights and Responsibilities booklet. It has a plethora of information that you need to have a successful transaction. (Also goes over all Fair Housing laws, etc) http://www.ag.state.mn.us/consumer/housing/lt/
Sure! It's your house, you can do whatever you want!
Now you want to make sure you're being smart about it. Make sure you do background checks. And, if you're in an association, make sure you're operating within the guidelines of your association's rules about rentals.
Your municipality may have other rules about renting property, too. Make sure you check about that so you're not in violation with the possibility of being fined. There's also the option to hire a property manager for a nominal fee every month. They will know all of this and handle everything for you.
If you can't sell, and you can't rent for more than your mortgage payment, then the idea will be to mitigate your losses and avoid bad credit ratings and foreclosure.
So, if your mortgage is 800 a month, and you can only rent for 800 a month, you will have to cough-up $80 to cover your mortgage. That's not ideal, but it's better than losing your total investment to foreclosure, and you can write off the loss against devaluation of your business property.
If you can rent for $1000, then your profit will be $100 because you will have to pay management their 10 percent. However, profit is a vaporous word.
Profit is a vaporous word because if you've owned a home you know the glorious headache home-ownership can be. Things break, leaks start, renters break your stuff . . . so whatever money you 'make' just set aside for when you have to replace your washer.
One thing I have seen done is buy a commercial washer/dryer with a coin mechanism and leave that instead of something free. They pay for the use, and when it breaks you have the change to cover it.
Also, always include garbage service in rent or you might find garbage piled in bags in the garage--hello insects!
And think deeply before you include heat and water in the rent because you might find people in tank tops with the windows open, heat set to 80 in mid-January.