Home Selling in Novi>Question Details

Zen, Home Seller in Michigan

Hi, I have finally put my house on the market. Whew!!!

Asked by Zen, Michigan Tue Apr 8, 2008

With the way the housing market is I do not know how long it will take to see. However my question is what are your thoughts on renting???? I live in Novi. MI. I have heard very discouraging things about renting that the renters do thrash the place before they leave. How does one arrive at the rent amount?? I really want to buy a house as the prices seem really attractive but selling my house is going to take very long. W#hat are my options?????? PLS HELP!!!! Thanks

Zen

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Hello Zen, I know this is a late answer to your question but if your still considering renting, there are property management companies who will screen the potential renters and collect the rent, take care of the eviction (if necessary) and will charge about 8% of the rental fee. They will take care of the maintenance. I can go on and on but if you are interested you can contact them at (248) 343-1267 the persons name is Nena @ North Bloomfield Properties. Tell her I sent you and they can help you out. If you have any further questions feel free to contact me.

Best Regards,
Mike Stawizky
Keller Williams Realty
Commerce Market Center
(248) 980-4406
Web Reference: http://moveinnow.org
0 votes Thank Flag Link Tue Jun 16, 2009
Zen, Congratulations on putting your house on the market! I would suggest that you competively price the house before renting it, but that is your choice. I have talked to several people who have done this and most of the time it is a very negative experience. What happens if the renters decide not to pay you for a month or two? Would that put you into some financial hardship? That is the first thing I would consider.

The eviction process can be quite lengthy. And the house could be trashed by then. Then in order to sell you may have to put thousands more dollars in to getting it in selling condtion or maybe even rentable condition again.

I would just make sure that your house is competively priced and the prettiest penny on the block. These are the biggest factors in getting your house sold. Even if you don't get what you are hoping for, you may get a very good deal on the next property!

If you are thinking about renting I would try checking with a local rental association in regards to rental amounts. They are usually quite helpful!

I hope this information helps! Best Wishes!
Web Reference: http://www.gomelinda.com/
0 votes Thank Flag Link Wed Apr 9, 2008
You need to have some patience in this market. Do you need the equity from the sale of your home to pruchase another? Renting can have it's negatives. Even the nicest people don't take care of the property as well as the owner. If your Realtor prices your home at or below market levels and then is aggresive about the marketing, your home will sell.
0 votes Thank Flag Link Tue Apr 8, 2008
Zen,

Just by looking in the Multiple Listing Service you should be able to get a ball park rental figure. (well that and your current total payments plus taxes and insurance) Ideally you'd like to have a positive cash flow before taxes.

I suggest looking at your mortgage to make sure there are no clauses preventing renting of your home. Then, review a lease agreement. There are companies that manage everything for you, for a fee of course. Missy is correct, you can expect normal wear and tear on the home that will have to be repaired before marketing the home again.

I've rented homes before, yes, there can be problems with non payment of rent. Once, the people chose not to pay for gas or electricity and the utilities reverted the payments back to me. (that was fun) So take some time to learn what steps it takes to evict tenants before you run into a problem.

Here is something the State puts out for Landlords and Renters http://www.michigan.gov/documents/Landlord__Tenant_Guide_10-2005_14…
Web Reference: http://www.mi-living.com
0 votes Thank Flag Link Tue Apr 8, 2008
You could do 1 of 2 things or both. 1. Go onto Realtor.com and see if what if any are the comparables of places in your area going for for lease. 2. Call a real estate agent that specializes in your area and ask them to pull the comps on places for lease as well as those that have leased in your area. For about 3 months I was looking for a lease for a client in the Troy Clarkston area and there were a lot to choose from that were listed on the multi-listing service. Be specific in your lease to make sure you are covered and be sure to do a credit and reference check on any candidates. It's best to be as thorough as possible when deciding to lease.
0 votes Thank Flag Link Tue Apr 8, 2008
Good day, Zen!

With anything when Risk / Reward is involved, you have a decision to make. You weigh the Pros with the Cons and arrive at what choice works best for YOU. You can set the criteria of what a prospective tenant needs to meet (i.e. a minimum credit score of X, have to pay X amount per month, have to sign a lease for X amount of months, etc.). The only thing you can not do is discriminate on who you Lease the house to.

I have done numerous Leases, especially over the last few years, and the Owners were pleased. There are certainly the situations you reference above where the property is not cared for, etc. Again, risk vs. reward.

As for establishing the rental price, it is important to have a bead on what is happening in the area. What are similar homes renting for? What are your costs and would the house cash-flow, or close to it?

All things to be thinking about, as Leasing is very popular right now, and I think will only get more prominent. Thank you for the question and best of luck...
Web Reference: http://www.doortodreams.com
0 votes Thank Flag Link Tue Apr 8, 2008
Zen, in our MLS you can have it in as a listing and a rental. Just remember that renters typically don't have steller credit unless they are renting due to not being in the area very long.

Just have your Realtor get permission to pull their credit. Typically you do have some maintenance issues or decorating to be done after tenants leave so budget. In Michigan you can only take 1 and a half times the rent in a security deposit.
0 votes Thank Flag Link Tue Apr 8, 2008
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