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Help me be a slumlord!
Sarcastro
Registered User
Registered User
Okay, so not so much a slum as a two bedroom basement suite here in Edmonton, in a reasonably nice area of town.
I bought the house for this exact purpose, live upstairs, rent out downstairs, and the renos to do so are almost complete.
Problem is, I've never rented out anything in my life. I'm a bit worried about security, but only because I am paranoid. I'm only slightly worried about damage, as the walls and carpet will be replaced after the first year.
I'm kinda worried about getting screwed out of rent, and I'm also a bit worried that I'm getting enough for it. I'm not really out to screw anyone, so much as cover a few of my own bills, help out with the mortgage, etc.
I view this much like getting roommate I never have to see and or share cleaning and groceries with.
Any tips on renting out a place? Ways in which my ass should be covered? Pricing advice? Pretty much hit me with anything you've got; I got a big bowl of nothing right now and I'm ready to fill it.
Thanks!
I bought the house for this exact purpose, live upstairs, rent out downstairs, and the renos to do so are almost complete.
Problem is, I've never rented out anything in my life. I'm a bit worried about security, but only because I am paranoid. I'm only slightly worried about damage, as the walls and carpet will be replaced after the first year.
I'm kinda worried about getting screwed out of rent, and I'm also a bit worried that I'm getting enough for it. I'm not really out to screw anyone, so much as cover a few of my own bills, help out with the mortgage, etc.
I view this much like getting roommate I never have to see and or share cleaning and groceries with.
Any tips on renting out a place? Ways in which my ass should be covered? Pricing advice? Pretty much hit me with anything you've got; I got a big bowl of nothing right now and I'm ready to fill it.
Thanks!
Sarcastro on
Posts
Edit: http://www.lectlaw.com/forms/f091.htm
That seems to be a pretty decent form right there.
get a decent safety deposit (half to one month's rent, generally speaking, here at least)
create a checklist before hand that you go through with the renters, ie windows not broken, walls not marked, carpet is pulled up slightly in x corner, etc. You then go through this list again with them at the end of their rental time and if there are significant damages you keep the safety deposit (again, make this clear in the rental contract and inform them as well, you go through the checklist with at least one renter type)
I thought the checklist was the renter's responsibility if they wanted to guarantee the return of their deposit.
I know going worst case scenario is not the best advice to the paranoid, but it's something you should have thought about.
You really need to do some homework here. Rental laws vary tremendously from state to state. For example, in Washington you have 30 days to refund in full the security deposit or provide very detailed chunk of paperwork for the portion you are not returning. Failure to do so means you can get hauled off to small claims for the amount of the deposit and a pretty hefty penalty on top of that.
Different states have different laws about how much of a deposit you can ask for, what portion is refundable, when and how much you can raise rents, what repairs you are legally required to handle and within what timeframe, when and if you are allowed to enter the dwelling, what penalties you are allowed to apply if rent is late and how much paperwork is required for all of the above.
Most importantly, eviction is an incredibly paperwork intensive procedure and if you mess it up you can get in serious trouble. It might sound like something you will never have to deal with but every landlord needs to know about eviction procedure as if you get tenant who is unable or unwilling to pay it is your only real option. You do not want to end up with a tenant staying on months past when they stopped paying because you didn't provide the proper paperwork or were late on a notice.
Once you know about the laws for your state and the procedures for common tasks (starting rental agreement, dealing with late rent, handling repairs, notices for entry of the apartment, closing a rental agreement and eviction) this is something any organized layman can handle without a lawyer. You probably will want to consult a lawyer though the first time through. Or at least do a lot of research.
Edit: Most important of all remember that even if a client signs a lease and agrees to something that portion of the lease (and, depending on the state perhaps the whole document) is invalid if they agreed to something that is against the law. Again, renters law trumps anything it might say in a lease or contract.
as Riemann mentioned, I'm sure it varies depending on your geography. The first place I lived in, the landlords had a premade list that they just ran through (windows in living room, carpet in living room, windows in bedroom, walls in hallway, etc). They also lived in the upper part of the house, while I was in the basement. I also live in Canuckia, not the states, so obviously there's going to be some variation. It just struck me as a damn clever idea and a good way to avoid some headaches
Since Edmonton is in Alberta, Canada, my rental agreement will have to be local. Pretty clear that I need one, and this checklist business is a great idea. I remember one from my own first rent now that it's been mentioned.
See also; eviction should be easier as I am still in residence and its my house (as in, k, gtfo)... right?
Hrrr, I should learn how to read first posts more clearly. Totally didn't catch the Edmonton thing.
There should be some good info on rental laws and such online as well. Google is thy friend. Read up on that. You in post secondary? Does it have a housing registry or help centre? Our help centre on campus has a few pamphlets on rental stuff... mostly as the rentee but it's still informative. On whatever contract you sign (preferably short, clear and intelligible) mention you have the discretion to evict a tenant for gross negligence or something like that, ie if they do this that or the other thing (light the house on fire, don't pay rent for 2 months, threaten you with bodily harm, etc) so that its in the contract
I only know about rental law in Washinton State in the US but absolutely not. And in fact in many ways once someone starts paying rent in many ways it is not "your house". (again, in WA in the US) renters have a number of rights and it doesn't matter one bit whether the landlord lives in the unit above them or not.
You try and just kick someone out here and you will get your ass arrested.
Again, while it may be different in Canada, in the US even if you sign a contract stating X it doesn't mean shit if the lay says Y. That is, a clause in a contact that attempts to rewrite the laws for how eviction works is not legally enforceable.
and Operation Flashpoint: Red River code to trade/sell
and Halo: Reach code
and Portal 2 code
Oddly enough, they also left almost all of their stuff there. Most people who are evicted or foreclosed on seem to just up & leave, leaving a big mess as kind of a "fuck you, clean it yourself." Which is weird, but whatev.
Anyway, if you meet with new tenants and go off the 'vibe' you get from them, that will go a long way towards helping ease any worries you have. But it's good to find out what the local laws are for being a landlord, because things like how quickly you must replace broken appliances & stuff like that is good to know. If the fridge breaks, can you afford to replace it within 1 day? What about the heat? If the heat goes out, do you know a good electrician/plumber/etc you can call up to have it fixed immediately? And I assume they're on a separate power meter? You'll have to have the power set up in your name, and then probably have them call and change it over to their name once they move in -- at least, that's how it works in the US.
I know of a few instances personally where the house in question is more or less a drug den. The Landlord has been trying to get this person out for months (the person has not paid rent even) and it's well known to those around the house that it is in such a condition. The person is fighting the eviction and is still there today.
Make sure you have a good feeling about who you are renting to. It's your house and your say who lives there. Meet the people more than once. Don't be afraid to judge them, and put stock into any snap judgments or things that kind of stick out to you.
Seems kinda shitty I know, but from my experience (in the southern Alberta area) you'll really want to be careful.