Renting Single Family Dewelling Too Two Families
SITUATION:
I have listed my primary resident of 12 yrs for rent as I have purchased a new home. The home (in california) is 14yrs old, 4br/3ba, ingrd pool,hrdwd flr and in excellent condition. I WAS ASKED TO CONSIDER RENTING IT TO TWO COUPLES. (four adults and three children)
MY PROBLEM:
Being a novice landlord, would this be advisable?
If so, should the lease be held in all 4 adults names or just the two with the best credit/rental/job history?
If one family move out how do I address the deposit, damages etc?
Might my insurance company have a problem with this as I would want to increase coverage?
Thank You in advance for any advice or experiences you my have to share!
Sull1720
Advisable? Maybe?
All adults on lease, responsible Jointly and Severally.
Their problem if one set moves. Other now pays all the rent or also moves.
Why would you increase coverage? You should be carrying an Umbrella Policy for $1M anyway.
I'm from a college town and multiple renters in one dwelling is common. The deal is you can raise the rent to acomadate the risk taken by you as the landlord for multiple renters.
Ed
Modesto a very interesting town. Has all the charm of a central town, and all the problems of the big city. Interesting choice of Congressmen, Must say that your white collar crimes make interesting reading. While at attendance at the Army Language School in Monterey, I used to drive inland to Modesto to achieve a bit of balance and normality. Speak Albanian all week, I needed a break and Modesto was perfect.
When your agent suggested the expansion to double family. Would this be agricultural workers? What is your rental rate? Sounds like an awful nice house avec pool. I would have held for single family only. Trying to get a more established tenant. Please describe your room count and baths. Very curious about your rental rate.
My only experience was an abandoned motel that we expanded to house transitory workers. Oh god what a job getting it fixed up. The tenants were very helpful what a mass of trades they knew. I shall never forget the boss lady who ran drywalling and cleanup. Made me clean up the oil spots my truck left on a driveway and I'm the owner. All the kids gathered around to watch me work while the boss lady flayed in a rich Guadamalian mix of Spanish and some Indian dialect I never did get.
Please post an answer. Lucius
8-)
Since your house is in good shape, I'd make sure you keep your options open to the right occupants. Our insurance went up when we rented a house to a family with several children -- you should be cautious not to discriminate against families as it is illegal in many parts of the country. The children are a great indicator of how well the family will keep up your place. One of my friends best tenants was a single mother of 6 who kept her children immaculate and well behaved -- my friend figured that if the single mom could keep six children in order the rental would be kept in just as good shape and it was. I inherited tenants who were neglectful parents who let their children thrash the place.
Credit score and references are very important -- call their previous landlord, not the current landlord for your questions. I've found the current landlord will tell you anything especially if he wants your potential renters out of his place.
On their application, also check their income. I try not to rent to anyone who is spending more than 1/4 of their income on rent.
There's a lot to weigh when screening tenants. Make sure you get a good lease and a hefty deposit for damages. Check out to see what the maximum deposit you can get by law in your area and ask for it.
Check out the Mr. Landlord site.
If it's a good place, please hold out for the right tenants.
Best of luck with your rental.
Melanie
Thanks all for your comments and suggestions as they are truly appreciated.
"Lucius" "Lucius" " Lucius"
I read your post and for some reason I felt compelled to read your profile followed your other post. Interesting reading as well
LOL
Anyways, yes Modesto is growing and so are the problems Politicly, Socially and Economically. However it's still a nice place to raise a family with affordable living.
My home is a 4br,3 full bth, 7 total,2 frpl,1 br/ba downstairs, mstrbr is up w/frpl /sunkin tub/walkin closet, hrdwd in lvrm/dnrm/halls, title all ba/indr lndryrm, 3 to 8ft ingrd pool, 2000sf on a 5500sf lot.
$1650
Thanks again all and thank you TCI!