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Ming D, Home Buyer in Illinois

How to rent out my condo?

Asked by Ming D, Illinois Tue Aug 5, 2008

I can't sell my condo without a loss. I'm thinking to rent it out until the market came back. Besides from using an agent, how do I rent it out from other venues? What websites I can use to post a for rent ad? Should I use local news paper? Post in stores? Any websites that give good tips of how to become a land lord? Do I need an attoney? How do I check potential tenant's credit? If I use a realtor, how is the commision calculated? Thank you!

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Great questions, I will simply attempt a partial answer. Unless your condo is very high-end I would not retain the services of a lawyer due to the cost. You can rent through an agent or property manager but that will be very costly. Much cheaper to advertise on and handle the process yourself (if you can handle all the headaches). I like your idea about posting in stores. That is a great idea and most shop clerks will allow it. Not sure how effective it is but worth a try. Very important -- be careful who you rent to. You might be tempted to ink a 1yr lease but what if the people are causing trouble and you need them out? It is difficult to break a lease. Ask for references and call them. Spend 15 minutes on the phone with each reference, ask all kinds of questions. It never hurts to ask.
2 votes Thank Flag Link Tue Aug 5, 2008
Not to rain on your idea but if you are planning to purchase something else you need to know that lenders will likely give you 75% credit for your rental income. That means if you Principle + Interest + Taxes + Insurance + Association is higher than this you will have to carry over the monthly loss in your debt to income ratios for qualifying on your new purchase mortgage loan. If your buying well within your means it probably won't matter but if you are near the ceiling you could be boxed out by your rental decision. Here is a blog that may be of some help.…
1 vote Thank Flag Link Tue Aug 5, 2008
There are some good reasons to use a property manager Realtor also. Many people have more confidence that the property maintenance will be handled professionally, their Security Deposit will be safe and handled with 3rd party objectivity, etc. Then too, the Realtor has access to contracts, and so forth to handle the lease, and credit report information to find out if the potential tenant has good credit or an eviction in the past. Good information to know.
1 vote Thank Flag Link Tue Aug 5, 2008
One other thing to check - what are your association rules regarding renting? It would be good to check them before you actually took this step, so you avoid any problems. Best of luck!
0 votes Thank Flag Link Tue Aug 5, 2008
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