Well after my "Vacant House" thread, I am giving consideration to renting out a vacant house. I have never done this before and have been reluctant to do so now, but it's probably in my best interest to do it. So what all do I need to know? How do I find tenants? Once I determine rent amount, I ask for 1 month's rent and the same amount for a security deposit, correct? I really am not even sure if what to ask y'all concerning renting out a I really know very little about it. So I welcome any and all advice.

I'm looking for an investment property. So if interested, send me a message.

Otherwise, go to Bigger Pockets online. Read read read. 90% of what you need to know to get started is there.
Next, visit with a CPA and real estate attorney. Set this up as a business is my advice, have a great lease document, have a strategy.
Next, go to Zillow Rental Mananger. You can manage the property yourself with that, leasing, application, advertising for renters, collecting rent, communication, tax documents, etc. You can also compare market rent rates.

Definitely get a legal contract form printed with what rules you expect to be followed and grounds for termination. Location determines rent amount along with the market. They will break things just like anybody else. Out of curiosity where is your house located? In a good school zone? Are desirable jobs close by?

If you have just one property. You can use the website avail.co (no m) it’s free for one property. It allows you to build your lease. There is a pre written lease you can add to. You can collect all revenue thru the website AND you can post the unit thru the website to multiple websites and you can also run any background/credit checks thru the website as well. I use it for both of mine. I have a friend that has 40+ units and this is what he uses. User friendly and pretty much does all the work for you.

I can send you a copy of one of my leases if you think that would help.

Do you own the house I would not rent it if you dont own it

Screening your tenants is the single best way to avoid many issues

You’ll want to physically go into the house once every couple of months to change the HVAC air filter and do a quick visual inspection
Take a flashlight
Look under sinks, behind toilets, are the gutters clogged and need to be blown out, etc etc

Communication is vital
You want to be able to get ahold of your tenant in a quick/reasonable timeframe and they should know that they can get ahold of you.
If a tenant reports a small water leak, you can often get it dried out with a fan and dehumidifier
If the tenant doesn’t bother reporting that small water leak, suddenly it’s $10,000+, an insurance claim with flooring getting ripped out, sheet rock removed and mold remediation.

Carpet is disgusting!!! Install a decent/good quality LVP flooring.

Lastly, think of your tenant as a business partner that should be respected
My tenant recently reported a small water leak before it was a major issue, as a thank you when I went to retrieve the dehumidifier I put a 12pk of his favorite beer in the fridge.

Thanks for all the advice. I'll dig into the recommended website and do some reading.

Is the regular homeowner's policy I currently have all that is needed, or is insurance for rental property different?

There is a pump house with an open shallow well on the property. If a child or anyone enters it and falls into the well, could I be sued?


What would be the advantage of setting it up as a business?


Lowndes County. I have my doubts about the public schools, but no first hand experience. As far as jobs, there is a local Hyundai supplier in Fort Deposit (actually maybe 2?), it's 20 miles to Hope Hull which has a few jobs and more coming (Amazon, Meta, some bottling company, Genpac, Haiger Hinge, etc.), Greenville is about 20 miles, and Montgomery and Prattville are 30-35 miles.


That would be great if you would not sending me a copy! I'll pm you.


Yes

I will tell you this, you better do a lot of research before doing it. You need to have an excellent lease agreement. You need to decide before renting if you are going to allow pets, what type and how many. (Don't listen to that garbage about I have an outside only dog). You need to know the tax laws in the state, county and city where the property is located. Make sure you have a proper company to do your background checks, income and credit rating. Make sure everyone over the age of 18 that stays in that house more than 10 days a year or more than 3 days straight is on that lease too. Just beware that once you sign that lease, the leasee has more rights than you over that property. Beware of section 8. Do not have in that agreement that the lease just rolls into the next month at the end of the lease, do not do that!!!!!!!!!

Please do yourself a favor and include 90 day inspections for the house. That way you can verify the condition of the property on a regular basis before it gets out of control.

My concern in todays world would be getting them OUT if there was a problem.

Have a maintenance/check line in the contract. It needs to read to (check water leaks,a/c proper operation,checking the vents/filters allows you geting inside if needed, drainage issues, roof inspection.)Quarterly or when deemed needed by the owner. This may not be done but the contract will allow it if needed. This let said home inspector/owner you to look around if anything is going on that should not be.

Having an open well on the property that is not fenced off or otherwise managed to prevent access and someone falls in, then yes, I think you could be sued for sure.

The easy solution is to fence it off. Maybe a large dog kennel would be big enough and it would have a walk through gate that you can keep locked and I would put some type of barrier to access across the top of it as well.

The way my insurance was the regular policy wouldn’t cover the house when it was vacant much less when I was renting it. I had to get a different policy yours may be different you definitely need to check.

I’ve never had a problem….BUT I screen diligently. If you do your part, it reduces your chances of having a bad tenant. Just don’t bend. If it’s in the lease agreement then stick to it. I’ve never had to evict and I’ve not had very many late payments. Memaw just signed a new bill to give the lessor more rights/protection. Just make sure they have a minimum credit score you’re comfortable with. It’s not gonna be great. I do 6-650. And make sure they make 3x the rent per month and you should be ok.

You’ll also keep a good tenant if you respond to issues in a timely fashion. I pride myself into getting it done quickly when my tenant mentions something. It keeps them happy and in turn they wanna stay…meaning they pay their rent.

I should also mention my houses are lower income so I’m more apt to have issues but again I haven’t yet. Knock on wood.

Good points!
Good idea.

Yep, that is my concern too. I've heard it's not easy to evict someone.

Agreed!

I thought more about it after I posted my question. It's actually a small shed with the well and pump inside. I will just get a lock for the door.


Sounds good!

This is what you want. Any hint of a problem then give thirty days notice and move them out.

Any tenant would be an idiot to do that.

My buddy had a couple rental houses and a chick trashed one of them. He found the higher you make the security deposit the better caliber of folks you will get.

Isn't the limit you can charge for a security deposit equal to 1 month's rent?

Make sure every page of the lease agreement is initiated and the last page is signed. Write a very thorough lease and don't assume anything. I have about 100 rentals and have been doing it about 5 years. Screen, screen and screen again. Other then that. Go with it.