Don't know if anyone has experience - but looking at renting out my townhome in Charlotte next year once we find a home to buy (a little under water at the moment, so selling isn't an option).

We spoke to a representative from My Townhome who said they had a program where they would find a renter for the townhome - they get they first month's rent and, I believe, 8% of the monthly rent until the end of the rental agreement. They will also serve as a go between (So they'd collect the rent, take any complaints, deal with the renters if they miss payments, etc.)

Has anyone used this or think that this is a good deal? It's the difference between basically not being able to 100% cover the mortgage at the townhome versus the headache that it seems playing immediate landlord can give you...

8/4/2010 7:40:21 PM

What about maintenance? How do they handle that? Make sure they're not charging you out the ass if a maintenance issue arises. In fact, if it were me I'd get quotes from a couple of management agencies.

Oh, and just my two cents, but this is probably a bad idea if you can't afford to pay both mortgages for several months without rental income (either through hefty savings, or just making mad bank).

[Edited on August 4, 2010 at 7:52 PM. Reason : .]

8/4/2010 7:50:03 PM

For maintenance, they would get the complaint from the person renting and then tell it to me. So I could either go over there and fix it myself, or hire the contractor myself. They're just acting as a filter of sorts between us.

Yea, we're waiting until next year to look at buying a house so we can build up our savings to pay two mortgages for months if it comes down to it. Definitly advised by both the My Townhome realtor who told us about this portion of their business and our financial advisor.

8/4/2010 8:20:15 PM

if all they do is tell you the maintenance problems and don't get someone to do it, it doesn't really seem that great. either way someone is telling you 1) to come fix something or 2) to hire someone to come fix something

just rented out my condo w/o a management company. $25 < the mortgage payment is the rent BUT written into the contract is that the renter has to do minor maintenance: clogged toilet, drain, disposal, air filter, etc etc. if something happens to an appliance or the AC/Heat then obviously it is something i have to deal with. but after living there 3 years myself, i only had issues when the AC broke (so that is new now), fridge broke (new now) and toilet clogged (which he would be in charge of...cost like $150 to have it fixed).

so it is sometimes worth it to do it yourself because you have more flexibility with the contract and choice of tenant (i don't know, i liked getting to pick who was going to live in my property). AND if you are in the same city, i don't see the benefit of having the complex act as a management company. i guess if your tenant misses rent or something. does the complex front the money for credit checks and stuff on prospective tenants? because that could be a good benefit. security deposit goes to...them? you?

i agree with ^^. i'd check with other management companies in the area and compare before you make your decision being a landlord can be a hassle but so can dealing with a management company :/

8/4/2010 11:24:47 PM

I actually spent the past month or so shopping for a new property management company in Raleigh.

Yours sounds like a rip off. With an 8% management fee I would expect a much lower releasing fee. All they're really doing is putting the place on craigslist and then forwarding maintenance calls to you. Releasing fees can add up if it's in a high turnover place like a college neighborhood where you have a new tenant every year or two, and many places charge a half month's rent or less, though like I said, it's often inversely related to the management fee.

8/5/2010 12:29:11 AM

Quote :

"written into the contract is that the renter has to do minor maintenance: clogged toilet, drain, disposal, air filter, etc etc. if something happens to an appliance or the AC/Heat then obviously it is something i have to deal with. but after living there 3 years myself, i only had issues when the AC broke (so that is new now), fridge broke (new now) and toilet clogged (which he would be in charge of...cost like $150 to have it fixed). "

That is an awesome idea. I'll definitly do that. Leaning back towards not using a management company so we can get as close to paying the mortgage with the rent as possible. Plus, we're going to still live relativly nearby, so it wouldn't be a problem to drive by the town home if needed.

8/5/2010 9:40:58 AM

I have a fair amount of dealings with this as I manage 3 homes. Unless you really dont think you can handle speaking to a tenant, you do NOT want to waste basically 10% of your income letting them manage your property. You DO want to use them to find you a tenant, however. They deal with all the nasty stuff of showing the house, weeding through the bad people, and giving you only the best options. It is well worth the first months rent. But after that, it should stop.

There are plenty of relocation services that will not require you to manage your property. I used Block and Associates for the Raleigh property, and had the place rented in just over 1 month to an awesome tenant that signed a 2 year lease.

8/5/2010 9:54:07 AM

Just saw this on cnn.com:
http://money.cnn.com/2010/07/28/real_estate/renting_out_home.moneymag/index.htm

Which reminds me, talk to your insurance agent and see if your old policy will still offer good coverage even though it's not your primary residence. I found out a few weeks ago that my insurance guy never mentioned that to me, so for several years I would have been completely SOL had my rental burned down, even though I was paying everything on time.

8/5/2010 3:43:55 PM

Well, you actually want to get a renters policy, regardless. Most rental policies will have lower premiums, not protect any of the furniture inside, and will give you 1 million liability (which you definitely want).

8/5/2010 4:51:38 PM

I was just surprised to find out that my insurance agent had my rentals all insured as primary residences, which was a potentially disastrous error.

He is no longer my insurance guy.

8/6/2010 3:54:27 PM

Yeah that could have totally fucked you over.

8/6/2010 4:05:29 PM

Bad investment to buy a lake park condo for ~80-90k and rent it out?

9/28/2010 5:47:16 PM

I work with property managers as part of my job. pm and I'll be happy to talk to you.

9/28/2010 8:01:02 PM