Comments on: Would You Ever Rent Out Your House?

By: Janis Mara

Janis Mara — Thu, 07 Aug 2008 00:19:00 +0000

Oh! Many thanks, Red! Hmmmm … I am rethinking that idea of renting to people I know. You have a point; I see what you mean about thinking you should take care of them. Might be best to stick to people I don’t know. For example, embarrassing and awkward to ask colleagues or friends for previous landlord references and credit reports, I’m thinking – whereas with a stranger, no biggie.

Huge damage deposit – YES! Seems like that would either (a) make it less likely the tenants would trash the place, (b) soften the blow if they do.

Thanks!

By: Red

Red — Wed, 06 Aug 2008 20:36:49 +0000

Before you rent to anyone, and particularly someone you know:
Get a credit report and references; work, previous landlords – and check them.
Deposits are first, last, and big damage deposit.
Written rental agreement, with penalty for late payments. Strictly Business when it comes to your investment.
Friends and Family can be the worst tenants, they often believe that you should take care of them if there is some little problem they are having.

Have I experience? um, yeah, brother in law…

By: Janis Mara

Janis Mara — Tue, 05 Aug 2008 23:40:59 +0000

Thanks, good points, RJL! I am actually thinking about doing this myself, but it scares me. Maybe the best policy is to rent to people you know AND ask to see their credit report … what do you think?

By: R.J. Lum

R.J. Lum — Tue, 05 Aug 2008 23:27:26 +0000

Yes. I sure would. The key word is “vetting,” and there’s lots of help available for screening potential renters. I would be more likely to rent to folks I knew through professional channels than to people with whom I do not share any link. Having said that, it is important to be realistic about the responsibilities of being a landlord.