Renting Your Home

[TexasBob]

My wife and I are thinking about moving and renting out our current home. Just want to cover the payment right now and use it as income as we get older. Where do I even start? What types of insurance, contracts, etc. Any advice is appreciated. Also, there is a small pond on the property which i assume needs special consideration as far as liability goes. What can be done about that- it is dug out of a dry creek that flows before and after the property with heavy rain. Will I need to put up a fence between the house and pond?

[2050z]

following

[Shortbow]

First make sure your credit will allow you to buy a second home. Your insurance person can tell you what you will need for insurance and then you need to make sure your renters have a renters policy to cover certain things. You can look online and get rental agreements or atleast copies of them. They can be very simple and they can be long and complex. Whatever works for you. I recommend being very picky on who you rent too.

[recar]

You can also talk to your realtor and see if they do property management. This takes alot of the pressure off of you. If you are not in it to make money and just make sure the payment is covered then it may be a good option for you. Especially if you move out of the city.

[DJM]

I'm thinking the main concern before you get started should be,can you afford two mortagages in the house goes unrented for any length of time.


DJ

[Dusty Britches]

make sure you have a written lease agreement that spells out everything from move in to move out and evictions. without it, as one TBHer can attest to, it will be difficult to get the renter to "prove up".

[Scout]

With specific details on eviction or they may be living in your house for free while you go through a long process ... You want details that make it easy for the judge to make quick decision

[Deb]

Everything above. My neighbor did this. At the end of a year it cost him more (much more) to repair the damage than the whole years lease brought in.

[Gonzo]

Renters will sometime tear things up. Make sure you specify you want to allow pets in the house, and make sure you know how many people are living in the house

[TallTexan]

Everything above. My neighbor did this. At the end of a year it cost him more (much more) to repair the damage than the whole years lease brought in.

This would go back up to, watch out who you rent to.

[cshall999]

I am renting a condo out. Make sure you have the money to cover the cost if the property goes for a time unoccupied AND see if you can get a property manager if you are just trying to cover your cost on the house. They are not that much and they will take a lot of things off of your shoulders, plus they will find the people to rent it to.

[cas077]

The insurance part is easy just talk with your current agent and tell him all that you told us. I would advise you getting at least $500k of liability, most policies are $300k. A fence is not necessary for the pond, a swimming pool is a different situation.

[Olphart]

Don't do it. It is a constant PITA and you will run across some lower than scum people that have no intention of taking care of it, paying on time, and just giving you all you want and then some. Evictions are a lengthy process and have to follow demand letters, at your cost,...all while the tenant has numerous rights that make no sense. Even with a judgement in your favor, you'll not collect and only go deeper in the hole.

Check the Texas Property Code before you even entertain this "adventure."

[Philip-TX]

Dig around here, lots of good stuff.

landlord protection agency

(We ended up joining)

[helibow]

Check with your tax accountant or CPA... there are tax implications. I am renting out the house I own. Cant make the same claims... and you will get a 1099 or have to report your rental payment as UNTAXED INCOME.