John Jenkins, Both Buyer and Seller in Palm Beach Gardens, FL

I am interested in purchasing a house but rather than selling my condo am interested in renting it out. I prefer to have a management company handle

Asked by John Jenkins, Palm Beach Gardens, FL Tue Aug 17, 2010

Is it expensive, should I reconsider?

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7
Kim Benedict, Agent, Overland Park, KS
Wed Jun 19, 2013
Its a great idea to have a company that works with rentals handle the property rental for you. This way you get the best possible tenets with credit check and background checked as well. This can give you a piece of mind about the person living in your home, and the assurance they can pay the rent when they move in.

Im most cases you can pay half or up to a full months rent to the broker. The difference in half months price is if you keep the listing in house with the broker, so only that office knows about the rental- takes a little longer to rent- or you can pay a little more get it rented faster with the property being placed on the MLS in that area and it can be rented out fairly quickly! You have no headaches of showings, and hoping you rent to someone with a good paying record, and clean background with no judgements, or bad credit.

Worth looking into and check a few different place to see what they have to offer.

Good luck!
Kim Benedict
0 votes
Lori Hobin, Agent, Jupiter, FL
Sun Feb 20, 2011
I have to agree with Marion and Ida on their answer! You must have the financial analysis done. I would suggest sitting down with a mortgage lender. Go over what you would like to invest in your new home and your current payment on your condo.

I would pay close attention to what is going on in your condo association as well. Paying the monthly mortgage, taxes, insurance and maintenance is added in; however, you also need to look into the association financial status. Are they thinking of any assessments to the owners or do they have any remodeling or repairing planned where they may have to make an assessment?

I would also have a Realtor give you the information on the rentals available in your development and the consistency in which they rent. One month empty can make a good size hole in a savings account.

Best of success, Lori
0 votes
David Poulsen, Agent, San Francisco, CA
Sun Aug 22, 2010
As long as you can afford to do this, it is a good thing to do. Make sure the rent you get from the condo covers the mortgage, taxes, insurance,property management fee and creates a reserve for any unforeseen repairs. The positive side are the tax breaks and any appreciation to be had in the future.
0 votes
Marsha Mayer, Agent, WEST PALM BEACH, FL
Sun Aug 22, 2010
Hi Marion,
Do you know of any reliable management company which will handle single condos purchased by an out of area buyer which will be rented by a Realtor in the central coastal WPB area.
To- Collect rents, take care of repair issues and tenat issues which may arise?
0 votes
Premier Homes…, Agent, Palm Beach Gardens, FL
Wed Aug 18, 2010
First of all please make sure you've done a thorough financial analysis of owning the two homes and renting one. A management company can be an excellent thing if you don 't live close to the property you will be renting or you're not comfortable with dealing with awkward situations that may arise. The cost of property management is small compared to the issues that may arise and usually need to be handled very promptly.
Best wishes,
Marion
0 votes
Alma Kee, Agent, Tampa, FL
Tue Aug 17, 2010
Hi John,

It will also cost you 50% to 100% of the first month's rent for the management firm to find you a tenant and then 8% to 10% of the monthly rent.

Well worth the money so you don't have to collect rents, evict tenants, take calls when the plumbing breaks at 2 am, etc!

Good luck!
Alma
0 votes
Trey Mills, Agent, Montgomery, TX
Tue Aug 17, 2010
No. If you consider a fee of 10% acceptable per month go for it.
0 votes
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