Your home in Kansas City won’t sell so you may decide to become an "accidental landlord"
So you’ve had your property for sale in Kansas City for 180 days and it won’t sell.
So you’ve had your property for sale in Kansas City for 180 days and it won’t sell.
Now what?
While you prefer not to become a landlord, your friends and family tell you that renting it out for a while may be the best option – at least you would have some money coming in.
You haven’t planned on becoming a landlord, it just maybe become the only option.
Before you become an “accidental landlord”, let’s touch on a few issues to give you some guidance on how you might want to proceed if you are in this situation. You will need to think it through and make the decision that’s best for you….but let’s consider your options.
Amp up Your Efforts to Sell Your Home
First, you now realize that it will take more than just putting a sign in the yard and keeping your home cleaned to get it sold. Give yourself a little more time and amp up your marketing and staging. Place ads and list your real estate agents phone number (don’t forget to let them know). Make sure the marketing is saturated on the internet. Use Craigslist, Facebook and twitter to reach potential buyers.
Maybe make a price adjustment or offer a bonus to the buyer’s agent? Real estate agents have tricks to increase exposure. Are they using them?
Are you helping by keeping the house clean and available for viewing? I have had sellers who refuse last minute showings or showings on their days off. Be flexible. Use some staging techniques to get home buyers emotionally attached to your home. Re-touchup photos on the mls and on the internet marketing.
Go the extra mile. If you have defects, address them up front like a decorating allowance or a credit for new appliances? These all cost money, sure, but otherwise, you’ll end up being a landlord.
It’s especially important to step up your efforts if you’re moving out of Kansas City — you really don’t want a rental property so far away from you . Especially if you’re new at this. Remember if you choose to rent your home out there are cost. You have a management fee and repair cost. Also, don’t forget that a renter will probably never take as good of care of your home as you would so when you do decide to sell, it may have deferred maintenance. So, amp up your efforts to sell your home first. If you decided to become an “accidental landlord” look at your options.
If the Landlord Option Seems Inevitable, here are your two options
Since you’ve had no luck selling your home, let’s make some some smart choices that will help you in your first landlord assignment. You have two choices:
Hiring a Manager to Professionally Manage Your Home
Since you do not have experience with this, hire someone to manage it for at least the first year. The typical cost are 7-10% of the rental income, plus re-rental fees for new tenants. When that happens, the management company can advertise it, show it, take rental applications and do credit checks, draft the lease, do the proper move-in and move-out procedures – so you don’t have to. The professional property managers work hard for their money.
If you work full time, not handy, moving out of the area, or have never been a landlord before – a professional property management firm is the way to go.
Make sure to interview several management firms, get references, call them, and review their insurance. Don’t forget: you get what you pay for!
One thing you can and should do to help, is place rental ads yourself for your property – just put the management company’s telephone number on them. Flood the Internet with ads and include nice pictures on Craigslist, etc. – it certainly can’t hurt, and most sites charge very low prices, or are free! Also promote on Facebook.
Choosing to Manage Your Property Yourself
Managing yourself can work well too, just make sure to educate yourself as much as possible. You maybe on the internet reading alot and trying to stay ahead of the property management game.
A few items to consider are the time it takes to show the property, draft a lease and get it signed, and evaluate potential tenants based on their credit, income, legal and rental history. Talk to experienced property owners to learn the ins and outs. Then monthly, you must collect rental checks, pay bills and handle issues about six times a year. It can be a lot of work – but you will learn over time what works for you.
If you choose this option, you may want to read up on Landlord - Tenant Law. Also keep in mind that if a tenant has your phone number, they will call you day and night about problems in the home like disposal clogged, stool over flowed, screen torn an more.
In Conclusion if You Decide to Become an “Accidental Landlord”
The key to making life easier and earning money is to get good tenants to stay. If you charge the highest rent you will have a slimmer pool of rental applicants.
In 22 years of doing real estate, I have encountered a few homeowners who have become “accidental landlords.” Most have regretted their decision because of the hassles of managing a rental property. A few have sold their homes after a year or two and were quite surprised at the inspections. Most who have chosen this path chose it to ease themselves out a difficult situation but found themselves in a more difficult situation later.
The secret for success is keep your property in good shape, respond to problems promptly, and treat tenants with respect.. All of the above are what most long-term, individual rental property owners have learned over the years.
Consider these options and educate yourself as much as possible to make the right choice for you – America’s newest accidental landlord.
While you prefer not to become a landlord, your friends and family tell you that renting it out for a while may be the best option – at least you would have some money coming in.
You haven’t planned on becoming a landlord, it just maybe become the only option.
Before you become an “accidental landlord”, let’s touch on a few issues to give you some guidance on how you might want to proceed if you are in this situation. You will need to think it through and make the decision that’s best for you….but let’s consider your options.
Amp up Your Efforts to Sell Your Home
First, you now realize that it will take more than just putting a sign in the yard and keeping your home cleaned to get it sold. Give yourself a little more time and amp up your marketing and staging. Place ads and list your real estate agents phone number (don’t forget to let them know). Make sure the marketing is saturated on the internet. Use Craigslist, Facebook and twitter to reach potential buyers.
Maybe make a price adjustment or offer a bonus to the buyer’s agent? Real estate agents have tricks to increase exposure. Are they using them?
Are you helping by keeping the house clean and available for viewing? I have had sellers who refuse last minute showings or showings on their days off. Be flexible. Use some staging techniques to get home buyers emotionally attached to your home. Re-touchup photos on the mls and on the internet marketing.
Go the extra mile. If you have defects, address them up front like a decorating allowance or a credit for new appliances? These all cost money, sure, but otherwise, you’ll end up being a landlord.
It’s especially important to step up your efforts if you’re moving out of Kansas City — you really don’t want a rental property so far away from you . Especially if you’re new at this. Remember if you choose to rent your home out there are cost. You have a management fee and repair cost. Also, don’t forget that a renter will probably never take as good of care of your home as you would so when you do decide to sell, it may have deferred maintenance. So, amp up your efforts to sell your home first. If you decided to become an “accidental landlord” look at your options.
If the Landlord Option Seems Inevitable, here are your two options
Since you’ve had no luck selling your home, let’s make some some smart choices that will help you in your first landlord assignment. You have two choices:
- Having the Property Professionally Managed – Recommended!
- Renting and Managing it Yourself – Not Recommended especially if you are moving out of Kansas City!
Hiring a Manager to Professionally Manage Your Home
Since you do not have experience with this, hire someone to manage it for at least the first year. The typical cost are 7-10% of the rental income, plus re-rental fees for new tenants. When that happens, the management company can advertise it, show it, take rental applications and do credit checks, draft the lease, do the proper move-in and move-out procedures – so you don’t have to. The professional property managers work hard for their money.
If you work full time, not handy, moving out of the area, or have never been a landlord before – a professional property management firm is the way to go.
Make sure to interview several management firms, get references, call them, and review their insurance. Don’t forget: you get what you pay for!
One thing you can and should do to help, is place rental ads yourself for your property – just put the management company’s telephone number on them. Flood the Internet with ads and include nice pictures on Craigslist, etc. – it certainly can’t hurt, and most sites charge very low prices, or are free! Also promote on Facebook.
Choosing to Manage Your Property Yourself
Managing yourself can work well too, just make sure to educate yourself as much as possible. You maybe on the internet reading alot and trying to stay ahead of the property management game.
A few items to consider are the time it takes to show the property, draft a lease and get it signed, and evaluate potential tenants based on their credit, income, legal and rental history. Talk to experienced property owners to learn the ins and outs. Then monthly, you must collect rental checks, pay bills and handle issues about six times a year. It can be a lot of work – but you will learn over time what works for you.
If you choose this option, you may want to read up on Landlord - Tenant Law. Also keep in mind that if a tenant has your phone number, they will call you day and night about problems in the home like disposal clogged, stool over flowed, screen torn an more.
In Conclusion if You Decide to Become an “Accidental Landlord”
The key to making life easier and earning money is to get good tenants to stay. If you charge the highest rent you will have a slimmer pool of rental applicants.
In 22 years of doing real estate, I have encountered a few homeowners who have become “accidental landlords.” Most have regretted their decision because of the hassles of managing a rental property. A few have sold their homes after a year or two and were quite surprised at the inspections. Most who have chosen this path chose it to ease themselves out a difficult situation but found themselves in a more difficult situation later.
The secret for success is keep your property in good shape, respond to problems promptly, and treat tenants with respect.. All of the above are what most long-term, individual rental property owners have learned over the years.
Consider these options and educate yourself as much as possible to make the right choice for you – America’s newest accidental landlord.
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Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty
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