Ricardo, Renter in Land O' Lakes, FL

I am planning to rent my house and do not know how to do this in the best/safety possible way., I would like to do this through a Real State Agent?

Asked by Ricardo, Land O' Lakes, FL Tue Aug 16, 2011

I need to know how this will work? How do they get pay?

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6
Hi Ricardo,

I am appauled at some of the responses your recieved. Just because one person says not to rent does not mean it is not for you. That is what the bulk of the investors are doing right now, buying and renting out the property so someone else is paying their rent.

Rental property is not for everyone. And yes, if you do not want to do it yourself (and I am one of those) then using a property manager is worth the investment. Mott is right, do your research and make sure that the manager you are using is qualified to manage your property.

Most property managers work this way: you sign a management agreement with them. They list and promote your property. once they find a qualified rentor based on YOUR specifications, you sign off on the tenant. In Florida, it is usually 1/2 of the first months rent is the fee for setting up and finding a tenant. then for 10-12% of the rent, they collect the rent, manage any issues, pay any services that are needed, i.e. pool and lawn etc... If the tenant defaults, the manager handles all of the notices and procedures involved to either collect or evict.


Unfortunately, rentals are not for everyone and you have to decide if it is for you. Don't let some nay sayer complicate things by discouraging you if it makes sense and you ahve done your homework. Use a local realor and do your homework. It iwll save you a round of headaches later on.

Rentals can be a headache if you dont do it right ( and sometimes even if you do) but the rewards can outweigh the headaches.

Roy
Web Reference: http://fglrealty.com
1 vote Thank Flag Link Wed Aug 17, 2011
Ricardo:

You've got several good answers.

Rental rates are as high as they have been in recent times and there are MANY people looking for property to lease. Screen your potential tenants thoroughly and get a proper security deposit along with advance rent too.

Contact a LOCAL Real Estate Pro, and interview a few of them.

The broker/agent can provide you with a RENTAL ANALYSIS to help you determine a fair monthly rate. Ask too much and the house may sit on the market with no takers. Ask too little and you may wind up with an unqualified tenant.

By all means, VERIFY, VERIFY, VERIFY....; Employment, Income, Past Rental History, Background and anything or everything else.

WATERWAY REALTY, REALTORS®
1 vote Thank Flag Link Wed Aug 17, 2011
I would like to thank all of you that have taken out of your time to advice me on this important matter. I am now in a better position/ well informed on how i should do this thanks to all of you. Again, thank you so much for your valuable advice. Ricardo
0 votes Thank Flag Link Thu Aug 18, 2011
First, this is a bad idea. Let me just get that out at the very beginning. Unless you purchased this property as an investment property (which is to say, you haven't and never intended to live there), you're going to have a real mess of problems. Renting out a house is not a good alternative when selling isn't an option.

Second, you can't rent the house for more than the market value of similar rentals in the area that have already rented. The cost of maintenance, mortgage, insurance (you know your homeowners policy probably won't cover the rental, right?), utility company deposits (landlords normally have to pay them!), and painting and cleaning between tenants are all quite expensive, but unfortunately you almost certainly won't be able to cover all those expenses with your rent. So this project will operate at a loss, probably for the first few years.

Third, you don't need a real estate agent. There are plenty of how-to books out there that cover most of what you'll need to know, and there are countless websites with tricks, tips, and legal guidance. And that's good, because most real estate agents are not "rental experts," despite their claims (listing rental properties when the sales market tanks is not the same as being an expert in the rental market).

So my advice? Don't do it. And if you're going to ignore my advice, don't do it with a real estate agent. Google "Land O' Lakes Management Company" and find a reputable management company to handle all of it for you (they'll charge you 6-10% a month plus a month's rent to find a tenant), and be ready to abandon your emotional attachment to the property.

Really, I wish you luck. This sort of thing isn't easy to do.
0 votes Thank Flag Link Wed Aug 17, 2011
You're right the safest and best way is through a real estate agent. It allows the owner to be somewhat removed from the situation. For example; the tenant wont have access to the owner for emergency repairs in the middle of the night and or be able to play on the owner's sympathy if hard times arise and they cant pay rent. The realtor / management co will complete the credit and background check to insure the tenant is qualified to rent your home. Management company's fees vary. My fee is 50% of the first months rent and a 8% monthly management fee. You pay nothing until we find and place a qualified tenant in your property.

I hope I've answered your question. If you need additional information or would like to speak to me regarding your property, please don't hesitate to call

Regards,
Sharon Smythe, Realtor
Home Encounter, LLC
813.309.2238
0 votes Thank Flag Link Wed Aug 17, 2011
If you decide to rent the property, you want to rent it for at least 1.5 to 3 percent of the purchase price. It is necessary to make sure your rental income will cover your out of pocket expenses such as the mortgage payment, taxes, insurance, maintenance, repairs and vacancy rate. Right now, demand is higher than supply. Check with local real estate agents or call rental ads to see what the going rental rate is within the areas you are looking to purchase a property. Are you going to be maintaining the property yourself? If not, you may want to hire a Property Management Company or Rental Agency. They will take care of everything for you for a fee. You also may want to read over the Florida Landlord and Tenant Laws: http://www.800helpfla.com/landlord_text.html
0 votes Thank Flag Link Tue Aug 16, 2011
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