Re: Investment property advice needed, help… - Posted by Mike
Posted by Mike on November 13, 2000 at 11:48:04:
I was intrigued by your request and while I cannot help with the capital gains aspect (I live in Canada), I can offer some suggestions with respect to renting your own home out.
From my experience, if the management company hasn’t shown the house, then get rid of them. You should have some sort of escape clause in the agreement you signed with them, but it may cost a bit of money to get out. Secondly, find out what your local market will bear in terms of rent - is the management company setting the rent too high?..a common ploy, much like the realtor who will show a home that is priced too high and then takes you to the home he really wants to sell you.
When you decide to rent and manage the property yourself, think back to the days you were renting and what steps needed to be followed- placing the ad, viewing the property, screening the applicants and checking the references, accepting security deposits and rent cheques, signing rental agreements and completing move in/move out inspections.
When writing the ad - think about your target market - families with children, working singles or young couples, etc… Use phrases in the ad that will appeal to your target group, e.g. Families with children -fenced yard, small pets permitted, close to schools, safe neighbourhood; OR young working couples - low maintenance yard, double garage, extra parking, easy access to freeway, minutes to downtown. I don’t usually put the dollar figure in, that way I get more calls and I can get a feel if the rent I am thinking about is going to be attainable. If the market is really slow, consider inducements such as paying for their move, or half month’s rent free, or pay for hook-ups - cable, power, etc… In my area, these inducements usually run $100 to $150 for rentals bringing in $650 per month. One month in lost rent is extremely difficult to catch up on.
i hope this helps get you started. Good luck, and let me know how you make out.