ondreeuh Posted April 20, 2011 Share Posted April 20, 2011 We currently own two homes next to each other; we live in one and rent out the other to friends. They have been there for 5 years and don't want to ever move. We have accepted a job in Alaska and have found renters for our current home. The wife grew up next door on the other side of us, and her parents still live there. She is THRILLED to move next door to her mom and to have our house. I'm sure she will be a great tenant too, since her mom is Type A about housekeeping and gardening. They want to stay here several years. So, the renters are settled about as well as any renters could be. :tongue_smilie: With both renters, we have asked for below-market-rate rent in exchange for greater responsibility for upkeep. Our current renters clean their own gutters, snake their own toilet, trim the trees, etc. and it will be the same for the new renters. Save a leaky roof or major disaster, we don't want to be called. They're all fine with this. My real question is collecting rent. There is no bank in our new town (not even a store) so they can't mail it to us. We have family here who could collect rent and deposit it for us. If renters are late, we want to enforce a late fee. Does anyone have suggestions for what to do and what NOT to do? Quote Link to comment Share on other sites More sharing options...
.... Posted April 20, 2011 Share Posted April 20, 2011 I own a rental house in MO and live in TX. You have to be able to bank. Is there a bank a distance away where you could just have an account specifically for the rental houses? What about something like ING, where you mail in your deposits? About upkeep...our tenant is awesome. I actually lowered his rent in exchange for "manage the property for us". One of the trees cracked and fell and he got it cleaned up. We're buying him a new frig next month, so we told him to go pick one out. As far as a late fee, if you have a great tenant in there, I wouldn't enforce too much of a late fee. Like, if they're late once, I would just let it go. If they're late frequently, yeah...there's problems. Could your tenants pay your bank account online, maybe? Quote Link to comment Share on other sites More sharing options...
ondreeuh Posted April 20, 2011 Author Share Posted April 20, 2011 We're going to keep our current bank. My MIL has her account linked to ours, or we could just give her an ATM card for our account so she could deposit the checks directly into our account. How would tenants pay our account directly if we don't use the same bank? Is there really a way to do that? I guess they could walk a branch and do it, but there's not one really close to our neighborhood. We're pretty relaxed with our current tenants. They always pay us by the end of the month. Since we didn't start out with late fees, it is difficult to start imposing them now. I'd rather start out a little bit strict. Quote Link to comment Share on other sites More sharing options...
EJCMom Posted April 20, 2011 Share Posted April 20, 2011 OT...where in Alaska are you moving? We used to live out in the bush in Alaska. Will you be in a remote village? Quote Link to comment Share on other sites More sharing options...
.... Posted April 20, 2011 Share Posted April 20, 2011 OK, I'm not sure how this would work, but our landlord here (we rent a house in TX) gives you the option to pay them directly into their chase account (I think they have chase). Also, they could mail you a check and you could mail it with deposit slip to your bank...but if your MIL is going to help you... I'm always worried about mixing relatives with money (probably paranoid is a better word). As far as the tenants, I've heard of some really, really bad tenants. I don't want to get into details, but I'm sure you can imagine. ;) I have a really great guy renting our house right now, so I want him to stay for a loooong time (even tho I know he'll end up buying a house soon :)). I also told him that this year, he could give me 30 days notice if he decided to buy a house and he could move out. He's been in there for a couple of years now. Quote Link to comment Share on other sites More sharing options...
Sebastian (a lady) Posted April 20, 2011 Share Posted April 20, 2011 We currently own two homes next to each other; we live in one and rent out the other to friends. They have been there for 5 years and don't want to ever move. We have accepted a job in Alaska and have found renters for our current home. The wife grew up next door on the other side of us, and her parents still live there. She is THRILLED to move next door to her mom and to have our house. I'm sure she will be a great tenant too, since her mom is Type A about housekeeping and gardening. They want to stay here several years. So, the renters are settled about as well as any renters could be. :tongue_smilie: With both renters, we have asked for below-market-rate rent in exchange for greater responsibility for upkeep. Our current renters clean their own gutters, snake their own toilet, trim the trees, etc. and it will be the same for the new renters. Save a leaky roof or major disaster, we don't want to be called. They're all fine with this. My real question is collecting rent. There is no bank in our new town (not even a store) so they can't mail it to us. We have family here who could collect rent and deposit it for us. If renters are late, we want to enforce a late fee. Does anyone have suggestions for what to do and what NOT to do? We've been out of town landlords for about seven years. We have a property manager who handles new applications, rent, deposits and most importantly repairs. You might want to look into this. It has saved us a ton of headaches to have her on the other end, calling repair guys or purchasing new appliances on a day's notice when something broke in an emergency situation. We pay about 10% of the monthly rent for this. I think you need to have specifics of who they will contact if there is a problem that needs fixed. If there is a plumbing problem beyond snaking or the roof does leak (ours not only leaked, but leaked again after a new roof was put on). Or if the stove breaks a couple days before Thanksgiving. Does the lease codify "major"? Is there a price or specific instances for which you are responsible for upkeep? I think it helps to have this spelled out when you aren't right there to answer questions same day. We were several time zones away from our rented house. It would have been quite difficult for tenants to work well with us. You may not have a bank branch in your town, but you will still be doing banking. Can you have the tenants set up an automatic deposit to your bank (this is what we're now doing as renters). Or give them the bank address and a deposit slip so that they can mail it in to the bank each month? (Though the auto deposit would cut down on lateness.) Quote Link to comment Share on other sites More sharing options...
SonshineLearner Posted April 20, 2011 Share Posted April 20, 2011 There are things like "quick pay"... ask your bank. I had a system like "paypal" for my account, where people could put money in straight to my account, without being part of "our bank"... It's doable. :) Quote Link to comment Share on other sites More sharing options...
CanaryMelody Posted April 20, 2011 Share Posted April 20, 2011 You may not have a bank branch in your town, but you will still be doing banking. Can you have the tenants set up an automatic deposit to your bank (this is what we're now doing as renters). Or give them the bank address and a deposit slip so that they can mail it in to the bank each month? (Though the auto deposit would cut down on lateness.) We use our bank's BillPay system. This would probably be an easy option for accepting rent. I don't know if you have a "grace" period in your lease. With us being renters, we ask for about 5-7 days grace. We get paid on the last day of the month. I go and pay my bills in BillPay but depending on who the bills are going to, it can take up to 5 days or so for the recipient to receive payment. Quote Link to comment Share on other sites More sharing options...
ondreeuh Posted April 20, 2011 Author Share Posted April 20, 2011 We'll be in a village on the Prince William Sound with only 88 people. (I'd rather not name it here because it is SO tiny, but if you look at a map you can find it.) Quote Link to comment Share on other sites More sharing options...
KatieJ Posted April 20, 2011 Share Posted April 20, 2011 We have been out of town landlords for 20 years now. Our city REQUIRES that there be a local property manager. Currently our PM does not have access to our checking account, except to deposit checks. It is a credit union and they simply go to the CU and make a deposit. Late fees is really not high on my list of things than can go wrong. I would personally have someone, a friend or relative not related to the renters agree to do a drive by every once in a while and periodically get inside the house to look around and see what's up there. If you get back there ever, you should definately plan a trip thru the houses. Remember that travel expenses will be deductible for you should you choose to do business with your rental when you get back. Keep in mind as you set the rental fees that taxes and insurance rates are different than if you live in the home. Your taxes will be non homestead and therefore much higher. We have had our taxes professionallly done by an accountant since we turned the first house into a rental 25 years ago. I highly recommend it. He keeps track of appliances and carpets and new roofs and such things that can not be directly deducted as expenses, but rather over time. Can't think of the word right now. Just last year we set up a LLC for the rentals. Quote Link to comment Share on other sites More sharing options...
.... Posted April 20, 2011 Share Posted April 20, 2011 (edited) We have been out of town landlords for 20 years now. Our city REQUIRES that there be a local property manager. Our city doesn't require a property manager, but they do have occupancy codes and you have to have a city and fire inspection every time someone moves out. So, yeah, that's a good thing to keep in mind, too. Also, when you move into a house/apartment in our city (in MO), you have to go to city hall and fill out an Occupancy Application. I really have to add this...be careful with property management companies. We fired ours after about 3 months. Also, the rental house we live in now (in TX) is run by a property management company and they didn't give a ^%$ about the property. There was trash everywhere in the garage, mold in the garage, there were holes in the walls throughout the house from the doorknobs, the house was filthy, etc. They weren't willing to fix/clean any of it and I'm sure the owner (who lives out of state) has absolutely no idea the state of this house. Oh, yeah, the dining floor is really messed up - we had to go out and buy a rug to cover it. There's probably some good ones out there, but just be careful if you decide to hire one of those companies. Edited April 20, 2011 by starrbuck12 Quote Link to comment Share on other sites More sharing options...
KatieJ Posted April 20, 2011 Share Posted April 20, 2011 I really have to add this...be careful with property management companies. We fired ours after about 3 months. , but just be careful if you decide to hire one of those companies. I agree totally. We have fired many in 20 years. Quote Link to comment Share on other sites More sharing options...
Cera Posted April 20, 2011 Share Posted April 20, 2011 We are renting from out of town landlords. They set up an account just for rent and gave us a stack of deposit slips when we moved in. I just go to the bank and deposit our rent into their account every month (we agreed to rent payment by the 5th to give me some leeway as to which day I go). Quote Link to comment Share on other sites More sharing options...
EJCMom Posted April 20, 2011 Share Posted April 20, 2011 What we did when we lived out in the Alaska bush was we signed a limited power of attorney over to our accountant to collect rent and enforce fees and stuff for our renters. It was also nice because he could deal with other banking issues and stuff that came up that might have required someone to be present in person. We didn't always have reliable internet access when we were out there (it was satellite internet and with the weather the satellite reception could be sketchy), so it was nice having someone physically here who could deal with all that stuff in person. You never know what might come up and it can be really frustrating to be out in the middle of nowhere where there is literally nothing you can do when stuff comes up. Quote Link to comment Share on other sites More sharing options...
ondreeuh Posted April 20, 2011 Author Share Posted April 20, 2011 Very good point. DH wants to do it ourselves but I will show him this. Thanks! Quote Link to comment Share on other sites More sharing options...
Sebastian (a lady) Posted April 20, 2011 Share Posted April 20, 2011 Wow, that does underscore how great my manager is. The last time the house was up for a new lease, her walk through included a huge batch of photos of every room, showing problems and condition. We are using the rental side of a local real estate company. We happened to know a realtor who worked there. But I also interviewed several before going with this company. One thing that I like about our PM is that she not only has a good nose for potential tenants and tenant problems, but is willing to tell us when we really do need to spend money on the property (like replacing A/C units). Quote Link to comment Share on other sites More sharing options...
Laura Corin Posted April 20, 2011 Share Posted April 20, 2011 Can you send in cheques to your bank? There is no branch of our bank near where we now live; the bank provides pre-paid envelopes for us to mail in any cheques we receive. We have a property manager for our house in London - they deal with emergencies for us and have done a pretty good job for thirteen years. Laura Quote Link to comment Share on other sites More sharing options...
.... Posted April 20, 2011 Share Posted April 20, 2011 Wow, that does underscore how great my manager is. The last time the house was up for a new lease, her walk through included a huge batch of photos of every room, showing problems and condition. You must've found a good property manager! I wish we could've found a good one. Quote Link to comment Share on other sites More sharing options...
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