questions for people who rent their property

[LivingtheGoodLife]

Hi,

My wife and I love Lake Winnipesaukee and would love to buy a cottage on the lake. The only way I can see making this work is by renting the cottage at least part of the time. So I am looking for some info from those who rent our their properties so that I can make sure I am making reasonable assumptions and not shooting for the moon.

Thanks to all for any advice and time.

Pat

How many weeks do you rent out your property?

Do you do use a property management firm or do it yourself?

Do you live locally?

thanks again.

[Weirs guy]

I'm not a renter, but I baby sit the next door neighbors rental for them so I'll see if I can help:

How many weeks do you rent out your property? They rent as many as they can and then base their visits around the open weeks.

Do you do use a property management firm or do it yourself? They use a local property management firm and me to handle their maintenance year round. Check the classifieds section of this site, I believe theres some listed there?

Do you live locally? They actually live in Mass. and Georgia, guess thats what I'm for. I would recommend having a helpful neighbor though, helps the new load of renters get used to the area (where to eat, park, play, ect.) and helps with the minor issues.

They post through an on-line rental site and have no issues with getting renters. This year we've had families from Chicago and Michigan along with the usual New England states.

Good luck!

[AC2717]

Originally Posted by Weirs guy

I'm not a renter, but I baby sit the next door neighbors rental for them so I'll see if I can help:

How many weeks do you rent out your property? They rent as many as they can and then base their visits around the open weeks.

Do you do use a property management firm or do it yourself? They use a local property management firm and me to handle their maintenance year round. Check the classifieds section of this site, I believe there's some listed there?

Do you live locally? They actually live in Mass. and Georgia, guess that's what I'm for. I would recommend having a helpful neighbor though, helps the new load of renters get used to the area (where to eat, park, play, etc.) and helps with the minor issues.

They post through an on-line rental site and have no issues with getting renters. This year we've had families from Chicago and Michigan along with the usual New England states.

Good luck!

My Wife and I wanted to start renting our place next year just for some extra scratch.

One thing I cannot wrap my head around is the whole Key issue how do you handle passing the keys and getting them back hoping they are not duplicated or anything like that. I have thought well I will give a door knob key but not a deadbolt key.
Is there an easier way though? I trust people but when I am gone for months at a time during the winter my mind gets the best of me. This is what I get for growing up in the city and having things stolen from me before. In fact the other day I was coming out of Bjs Wholesale club in North Attleboro MA and I was filling my truck with goods, next thing you know I turn around and my milk that I had on the shopping cart child seat was gone, some one stole it while I head my head in my trunk shifting things around, can you believe that! I know I had it because When I was putting things in boxes I did put that in a box because we had a 15 minute drive home and it was really hot in the trunk so I made sure it was not going in the trunk.

On a side note though, an I am sure you have thought of this LivingtheGoodLife, if you have to rent it be able to afford it might not be the best. My wife and I played with that idea and decided it would be too risky so we lowered our price ranges to get something we can afford to pay if we do not want to or cannot get renters. Works out great, we never have to worry about renting if we do that is cash in the pocket for boat storage and gas. If not oh well!

Please others please keep the pointers coming I am looking for any and all rental tips and pointers as well.
thank you

[LivingtheGoodLife]

Thanks Weirs Guy!

[Weirs guy]

Any time LivingtheGoodLife.

[Paugus Bay Resident]

There are some tax considerations. You may want to check out this IRS publication, http://www.irs.gov/taxtopics/tc415.html

[AC2717]

Originally Posted by Paugus Bay Resident

There are some tax considerations. You may want to check out this IRS publication, http://www.irs.gov/taxtopics/tc415.html

When you purchase to get a better rate buy as a second home, because if you have intentions of renting right off the bat they will know and you will be forced into a income property mortgage.

Then after decide you want to rent it. Now if you declare the rentals and hit a certain amount on it you have to then declare it a rental property and then you deduct expenses but also declare your income on it. Also when you go to sell it you will have to pay more taxes on it. I have looked into it. Now if you keep it as a second home and "allow" others to use it lets say, then you can keep it as a second home and pay less taxes at time of sale and for how long you own it each year when you do your taxes. You have to weigh both situations and make your own decision here.

[Bear Islander]

We purchased our place with plans to rent it out. Then we never did because we couldn't give it up. I have talked to others that have done the same. We use renting to justify the expense and make the numbers work, then don't.

[DREAMS]

Location and secondly price will be a major dictator to the results of renting your property and your potential income. Island rentals are very attractive for many people who have a boat and have comfort with the tranquility and peacefulness of island living. As an owner, you are undertaking much more challenges in maintenace and transportation of everything from mainland - however well worth every challenge! Generally, you purchase island property for less than mainland and the rentals are less on islands verses mainland property. I have had personal experience and success with handling my own rentals and servicing the rental guests. A great experience however living locally makes that economically feasable compared to living out of state. I regards to your concerns of theft and keys, the quality of rental you provide dictates the quality of your guests. However, I certainly beleive any folks willing and able to pay your rental fee will have no desire or plans to steal from you. If they like your rental and location, they will do as much as possible to please you and have the opportunity to return another season.

If you find a place or have any more quesitons, private message me and I would be glad to offer any help as a local! Lake Winnipesaukee is the only true life to live!

[SAMIAM]

If it were me....I'd go by the numbers.Ok,..let's see....Take 500k for 30 years at 7.5%.That would be around $3,500 monthly or 42K annually.Now add 8 or 10 k in taxes and your up to 50K or so.Insurance for a rental is fairly steep and there would be some maintenance.Let's say,around $54,000 per year in expenses.
Now,let's see what's coming in on the other end.If it's an attractive place with lake access,you should get $1,000 weekly. Lakefront will bring in much more,but double the mortgage.
Anyway,my guess would be that you'd be lucky to take in $15,000 and out of that you'd have to pay a fee to the agency.
Bottom line is that little love nest will cost you nearly $40,000 a year.Certainly not good as investments go, but certainly one that would hold it's value.
I'm not a realtor,I just took those figures out of my head......just guesswork.

[ossipeeboater]

Originally Posted by AC2717

When you purchase to get a better rate buy as a second home, because if you have intentions of renting right off the bat they will know and you will be forced into a income property mortgage.

.

As long as your intentions are to occcupy it as your second home for most of the year you can rent it a portion of the year without an issue with most lenders. Renting for 8-10 weeks out of the year would be fine. If you were financing it as a second home you could not use the potential income from the rentals to help qualify you for the mortgage.

I've gone back and forth with my wife on renting our place out, looks like we will take advantage of the 14 days the irs let's you rent without having to pay taxes and put some friends in it for 2 weeks next summer to help pay the tax bill.

[Weirs guy]

I missed AC2717 question about the key. Right now our neighbors leave a spare key hanging under the porch year round and tell the renters and property maint. company where it is. We've not once had any issues at all (maybe thanks to me watching the place year round, for free, hey, when do I get paid!!!) with duplicates or unwanted guests.

I'd guess that roughly half the people who rent sign up for "the same week next year" before they go, and the going rate (30 second walk to the boardwalk) is $1,200/week.

[GrandmaBig6]

We don't own a house in NH but hope to one day.

We've rented houses for 18 years. A few houses we rented a few years in a row until they were sold, or the owner decided to live year round.

When we left houses they looked better than when we got there. We cleaned everything, vacuumed, dusted, etc. even tho a cleaning person was coming in to do the same thing right after we left.

The key was either under the gas tank of the grill, under a milk can on a front porch, hanging on a hook under the 3rd step. Then there were other times we would rent thru a realtor and just picked up the key from them.

We have brought our dogs (one dog for 14 years and our new puppy this year) and we always got back our security deposits. We have respected other peoples homes because we want to get the house for the next year (except the one we rented this year, that's a whole other story [no dresser in one of the bedrooms, no vacuum, a staircase so steep we had a tough time climbing it and I could go on] needless to say I've got a better house already set up for next year.

Anyway, this is just from a renters pov.

[AC2717]

It has always been a concern for us,
WE used to rent homes or cottages as well and do the same, and then it always comes down to the well you never know.
then I was thinking, they make a relatively in-expensive key pad lock of which you use a code to get into the place. and then I said that is easier for me as well, because then I do not have to worry about making sure the hide a key is outside and then also in case I forget my key as well or loose it int he lake when I go out to the boat. That way as well I can just give a code and then change it if i wanted.

I agree that most that you meet up in the area are nice people and they always want to get in for the next season as well so they are respectful. I guess it runs into like i was saying well you never know. But I am going to go for it next year. It would definitely help with boat storage and mortgage if so needed.

Thank you for the input and please keep it coming on the tips and experiences from renters and from those doing the renting. any and all tips are welcomed. Anything to learn the do's and dont's.

[Coolbreeze]

If you don't need the money, don't rent. People trash your place, call you with every little problem and generally don't care about your propoerty. This comes after thirty years of experience.

[TomC]

Originally Posted by Coolbreeze

If you don't need the money, don't rent. People trash your place, call you with every little problem and generally don't care about your propoerty. This comes after thirty years of experience.

I rent one of my places exclusively (ie I don't personally use it)

I have never had anyone "trash" the house, and i virtually never get calls about problems. The one time I did, the floating dock had broken loose and the renter rightly called to let me know after they did emergency makeshift repairs. Indeed, I think the people do care about the property and treat it as if it were their own..

I maintain the place impeccably. Everything works and my wife keeps the decor inviting. If you are going to hit people with an expensive weekly rental fee (it can amount to $1000's/week for waterfront) its important to give the customer their money's worth.

This also comes after years of experience.

[GrandmaBig6]

Coolbreeze:

Too bad about the renters at your property although not all renters are lumped into the group you mentioned. As I mentioned before I do take extra time in cleaning and effort in keeping other peoples belongs safe.

As for calling all the time, I would hope that property owners would like to know what happens to their house while they are not around and others are staying there. I want my security deposit back and I certainly would not jeopardize that.

Hopefully some day you will give us renters a chance.

Mary

[ApS]

Originally Posted by LivingtheGoodLife

"...I am looking for some info from those who rent our their properties so that I can make sure I am making reasonable assumptions..."

Maybe I've been lucky, but I've only had one "iffy" tenant.

At my question of "how many will be staying", a young NY couple failed to advise me that they had a small child. (It is possible to fall twelve feet to the ground here, after crawling through the railings.) Upon arrival, crawling into the railing was exactly the first thing the child did!

That moment rated a "time-out". They also left a large baggie behind a couch that had a brown weedy substance in it!

Sometimes you just don't know how responsible your tenant will be—with their children and with your stuff. Your rental agreement should include a prohibition of illegal activities.

Another liability would be to allow any boat on your property to be available to the renters—IMHO.

[Coolbreeze]

Well, I guess for the length of time our family has rented the place, alot of bad experiences seem to stand out in your mind. They act like a lesson learned and help allow us to make decisions regarding who we rent to.
The rental reality for our family is a necessity to keep the house. The investment aspect of the property value, both in emotions and in dollars is well worth the down side of renting. We are now exclusive to certain families who have made our house a traditon in their family vacation. These are the folks we want as renters, it just took us a long time to get a good list of them.

[Weirs guy]

And one last side note of complaints. If you have a friendly neighbor willing to keep an eye on the place, stop renting it after labor day. Give the neighbor some time to enjoy the area to themselves.

If I go home to one more renter on my street during "my time" I'm burning the renters place down.

(OK, not really, but give me a break!)

[tis]

And don't forget the state wants their 8% Rooms and Meals Tax!

[SIKSUKR]

Originally Posted by tis

And don't forget the state wants their 8% Rooms and Meals Tax!

Except on a 6 month off season lease.