Renting with a Realtor?

[sordjes]

Has anyone ever rented out a property using a realtor? We're thinking about renting our home out and buying something more convenient for ourselves. We don't want to do it ourselves because of all the things you hear about those evil renters. But we're not sure if it would be worth the effort to use a realtor. We definitely plan to go and speak to a realtor but I was just thinking I could get some advise before we go in empty handed.
Thanks,
Sus

[Donner]

we found the house we currently rent through a realtor. The owner lives in another town and didn't want to have to deal with the details so she pays the realtor company to do the leases and show the house and such. Once we signed the papers and filled out the documentation on the shape of the house we were done with the realtor and deal only with the owner. If we need something taken care of, we just call her. When our lease was up the owner just offered to let us go month to month since we hadn't had any issues in the first year.

I think she mostly does it because of the distance. I don't know if that helps or not.

[CaptainTom]

Rather than a realtor, I would try a property management company. They are set up to specifically do what you are wanting to do.

[Cope]

You have a PM.

[L Stegall]

Just check out the company and/or agent carefully. My one experience using a property management company to find me a tenant (instead of doing it myself) resulted in the single worst tenants I ever had in the few years that I owned rental property (i.e., condos that I could not sell when I wanted). They misrepresented that there would be 2 roommates, both out of college and working, when it turned out to be about 5 SMU students hellbent on partying hard. When there were evicted 6 months into the lease for non-payment, they left the place pretty trashed out. I had to sue the agency for misrepresentation (and the tenants). I got a little $ from the agent, none from the tenants, who had none left. It paid for a fraction of the repairs needed to release. Bottom line, I found owning one or two rental properties was a hassle. I found my next tenants myself and they were great and ultimately bought the place from me.

Good luck - hope your tenants are good. There are plenty of good ones out there.

[Big T]

You must be a licensed Real Estate Broker to run a Property management company, and all leasing is done by realtors or a licensed Texas real estate agent, depending on what service that you want, most of the time they charge 50% of the first months rent and then about 8-10% of the rent per month to manage the property, that includes running credit checks on everyone wanting to lease, collecting the rent, getting repairs done when needed, checking on the property now and then, to make sure that the tenants are taking care of your property.

[GypsyHighSide]

I am have my real estate sales license and I am a Realtor. Having managed property for a select few clients, I offer these pointers.

1. Credit checks on all renters are mandatory. While there is no guarantee that the prospective tenant will be a good pay. Logic would dictate that if the tenant has been responsible with their credit then they will be responsible and pay their rent on time.

2. Ask the tenant for rental history and work history. If they have been good renters and good employees then . . . the logic thing again.

3. Get a good size deposit. I usually took deposit that were 75%-100% of one months rent. Stress to the tenant that under no circumstance will any of the security deposit be applied to rents owed. If you find a prospective tenant that is having trouble coming up with the large security deposit, write it into the lease that they will pay 50% of deposit before moving in and the balance with their 2nd months rent payment or within two weeks of moving in.

4. If you don't have a sprinkler system on your property get one. Tenants notoriously don't water the lawn or plants. It can be costly to redo the landscaping. Also hire a professional lawn service or have the management company do the lawn. Be sure to include this in the price of rent. This item is no negotiable. The curb appeal of the property will be zero if the landscaping is not maintained.

I would recommend using a Realtor. Can you do it yourself . . . yes. Are you going to want to drive 20 - 30 miles or how ever far away you are moving to show the house? Do you have the access to credit reports? Have you written many leases? Do you know real estate law? Do you have access to place the advertisement on real estate websites and real estate related print media?

When interviewing a Realtor ask for references of current property owners. Ask for a list of current properties they have under management. Drive by the properties and take a look. Do the properties look good or are they ragged out? You need to look at more than just one or two. Ten would be a representative sample. Ask if they have their own in house handy man or do they hire all services out. Ask for a list of all fees and how they are calculated. All fees are negotiable.

I hope this helps you out.

Rob

[adirty1]

Leasing company. After dealing with 5 rentals that is the only way to go. Personally I would sell it unless you own the house out right. I will only rent what I own from now on.

[sordjes]

WOW! Awesome advice from everyone. It's great to be a part this forum with such helpful people.

Thank you guys and Lisa very very much.