any advice for new landlords?

[diat150]

someone gave me a mobile home and I will be setting it up on some property I own in a couple of weeks. anyone have any experience with this and can give me some advice? should I setup an llc? This is sort of a trial run, and if it goes good I will continue adding on more mobile homes. Id like to get up to at least 8 of them.

Id appreciate any advice as this is a new thing for me.

 

[JBP55]

someone gave me a mobile home and I will be setting it up on some property I own in a couple of weeks. anyone have any experience with this and can give me some advice? should I setup an llc? This is sort of a trial run, and if it goes good I will continue adding on more mobile homes. Id like to get up to at least 8 of them.

Id appreciate any advice as this is a new thing for me.

You may want to seek advice from an Attorney, especially concerning the lease/rental contract.

 

[kcinnick]

Don't rent to family, friends or friends of family and family of friends.

 

[sandman7925]

The few people I know that got into rental properties got out as soon as they could

 

[diat150]

yeah, I plan on doing that. Just hoping that someone that is currently renting out would chime in with some pointers so that I can make sure I dont leave any stone unturned.

 

[diat150]

well, thats why I am starting with just one with little to no investment in it. if it goes good for a year or two I will expand, if not ill sell it after I recoup my investment. I think the rental market will be much stronger now with it being a little harer to get a mortgage.

 

[Xenon]

Give them an application that asks for:

Income (it should be at least three times rent). Check their pay stubs.

Length of time with employer (should be at least six months). Call the employer to check.

Social Security number to run a background and credit check. Do so through e-renter.com or youcheck-credit.com for about $25.

Names of the prior two landlords. Call to find out if the renter caused problems. But remember: Turning away folks who don't fit your nonfinancial preferences -- say, families with kids -- violates fair housing laws. Get familiar with the Fair Housing Act

Specify your needs in the lease.

Don't be afraid to write in language that permits you to, say, show the home to potential buyers/future renters if you abide by terms like giving the tenant 24 hours' notice, have entry/inspection rights to the house, who pays utilities, cuts grass, etc. Being upfront about your needs will start you on the right foot...

 

[CEHollier]

someone gave me a mobile home and I will be setting it up on some property I own in a couple of weeks. anyone have any experience with this and can give me some advice? should I setup an llc? This is sort of a trial run, and if it goes good I will continue adding on more mobile homes. Id like to get up to at least 8 of them.

Id appreciate any advice as this is a new thing for me.

First you may want to look into zoning laws. Do a good background check.

 

[aroundlsu]

There is a good landlord for dummies book. Get it. Be prepared to evict for late rent and know lousiana laws regarding renters. It's different than any other state in the union thanks to our french ancestors.

 

[gsneff]

lots of insurance

 

[flamatrix99]

I bought a house in Georiga when I got married the first time. I was in the Navy then and got transferred to California. I rented the place out from 1995 til 2005 (I got out of the Navy then stayed in Cali afterwood) to the same family. Insurance made me have a property manager. I went with a local realtor. They were supposed to frequently inspect the house but they never did. I never got back to that part of the country so I hadnt been back to the place in 10 years. My current wife and I went back and holy sh*t. They didn't take care of anything. Wallpaper that my mom and ex-wife put up in 1992 was being held up with shipping tape. The curtains my ex made when we moved in were still hanging too. Everything outside was so overgrown you couldnt see out of a couple windows. The garbage disposal wouldnt work because it was full of crap and leaves. How the hell do you get leaves in a garbage disposal? It was a mess. We sued them and got some money plus the deposit but not as much as it took to fix the place up. It looked great when we sold it and I doubled my money from when I bought it. That money allowed me to buy the house we have now.

Oh yeah one other thing... NEVER AGAIN!

 

[brfd557]

Give them an application that asks for:

Income (it should be at least three times rent). Check their pay stubs.

Length of time with employer (should be at least six months). Call the employer to check.

Social Security number to run a background and credit check. Do so through e-renter.com or youcheck-credit.com for about $25.

Names of the prior two landlords. Call to find out if the renter caused problems. But remember: Turning away folks who don't fit your nonfinancial preferences -- say, families with kids -- violates fair housing laws. Get familiar with the Fair Housing Act

Specify your needs in the lease.

Don't be afraid to write in language that permits you to, say, show the home to potential buyers/future renters if you abide by terms like giving the tenant 24 hours' notice, have entry/inspection rights to the house, who pays utilities, cuts grass, etc. Being upfront about your needs will start you on the right foot...

Everything he said! Know who or what your renting YOUR property to.

 

[headshot]

I had an attorney draw up a contract for $100. I sit down with the lessees and go through it & make them sign it, then have it notarized. I have NEVER had one problem, from any of my lessees, but I don't take any crap off of them either. Most people will give you up to 2 weeks late on the rent, then start charging late fees. If you ask me, your just setting yourself up for someone being late all the time. I let them know up front that if they are late on rent, there will be no fees. They will be evicted. If they start tearing your property up, keep the deposit and evict them. I am understanding, however, and if someone was late and needed a break once, I would help them out, but like I said, I have never had a problem.

I am saving right now to buy more trailers to rent. It is a great way to make money. Good luck!

 

[olivs260]

My wife's grandparents have rented a couple houses for > 50 years. They've had good experiences, and they've had bad ones. #1 is make sure you screen your applicants- credit check, background check, talk to previous landlord, etc. #2 is make sure you have a solid contract that gives you the opportunity to charge for late payment and evict for serious problems. I'd also recommend having a contract for 6 months or so; that allows you to get rid of a bad tenant without having to evict.

 

[Emperor]

No one said to get a damage deposit yet? And one months rent in advance, so when they trash your place, and split in the middle of the night, you at least have something to show for it.

Attached is a lease I put together for some places I leased in New Orleans. It works, and it's free.

You can stylize it as needed.

View attachment Example Lease.doc

And I agree, No family / friends.

 

[whitsend]

Check out CREonline.com
They have a section just for mobile homes.
http://www.creonline.com/mobilehomes/wwwboard4/

I've bought and read sever books from the guys on CREonline but haven't started investing yet.

 

[diat150]

good advice so far. Appreciate the rental agreement also, looks like a good starting point.

 

[PAPACHUCK]

Coming from someone who is now forced to live among renters, bear in mind what the neighbors of your rentals have to tolerate from your tenants.

#1 on my shitlist is the owner of the 30-40 houses around me that rents to the lowest class people possible. Three visits from the Sheriff just last night due to loud music and partying 'till late in the night, 15ft from my bedroom window.

And nobody went to jail. WTF?

 

[crippy02]

Coming from someone who is now forced to live among renters, bear in mind what the neighbors of your rentals have to tolerate from your tenants.

#1 on my shitlist is the owner of the 30-40 houses around me that rents to the lowest class people possible. Three visits from the Sheriff just last night due to loud music and partying 'till late in the night, 15ft from my bedroom window.

And nobody went to jail. WTF?

This is why I have a "No loud parties" clause in my lease for the house I rent in Baton rouge. All I gotta do is get a call from a neighbor and bam, call sherrif's dept. to get it documented and a week later, my house should be ready to be rented to someone else. Never have had to use it yet, though, guess I got a good renter.

 

[diat150]

ha, my first dilemna. the fricking trailer hitch broke when they were pulling it to my property. had to get it rewelded! oh well, there goes a couple of months rent.