Need Advice On Renting Out House

[BillBrown]

I've been trying to rent out a relative's house for them.
I've ran an ad and had plenty of inquiries, but they've all had the same problem.

They want to sign a lease to lock it up. They don't want to move for another month.
I tell them I need a months rent whether they are in the house or not. I can't let it sit for a month without generating revenue.
They won't do it. I can understand why. They'll be paying rent where they are until they move and they don't want to pay double.

I have ran into this several times.

How do the pros handle this?

Does anyone have any experience at it?

[stodr]

don't ask them for the rent ask them for the damage deposit to hold it

[Gray]

I've been trying to rent out a relative's house for them.
I've ran an ad and had plenty of inquiries, but they've all had the same problem.

They want to sign a lease to lock it up. They don't want to move for another month.
I tell them I need a months rent whether they are in the house or not. I can't let it sit for a month without generating revenue.
They won't do it. I can understand why. They'll be paying rent where they are until they move and they don't want to pay double.

I have ran into this several times.

How do the pros handle this?

Does anyone have any experience at it?

Hire a Realtor to do it and sit back and relax.

[EmmanuelGoldstein]

I've been trying to rent out a relative's house for them.
I've ran an ad and had plenty of inquiries, but they've all had the same problem.

They want to sign a lease to lock it up. They don't want to move for another month.
I tell them I need a months rent whether they are in the house or not. I can't let it sit for a month without generating revenue.
They won't do it. I can understand why. They'll be paying rent where they are until they move and they don't want to pay double.

I have ran into this several times.

How do the pros handle this?

Does anyone have any experience at it?

No, but (no offense) that's not their problem. Maybe you should look into your state's landlord/tenant laws. The way you're putting it here doesn't sound quite kosher.

[BillBrown]

No, but (no offense) that's not their problem. Maybe you should look into your state's landlord/tenant laws. The way you're putting it here doesn't sound quite kosher.

No it isn't their problem. The fact they want to rent the house, tying it up and not paying anything for a month, isn't my problem.
I don't have to do it because I don't have to sign the lease to begin with.
I know the law doesn't make me sign a lease.

[BillBrown]

Hire a Realtor to do it and sit back and relax.
I wish they would have. They're out of the country and I volunteered to do it for them. I shouldn't have.

[curtis123]

I rent out commercial property, mostly to government agencies.

Make sure you know what you're getting into. Spell out what you don't want to happen in the lease. In other words, describe how far you're willing to go on maintenance, otherwise you're going to get called every day to change a light bulb and you'll suddenly realize you have another career.
Also, make sure you charge enough rent to cover reasonable updates and maintenance.

Some rental properties can be more trouble than they're worth. Some of my highest maintenance leases are federal government. They're charged for it, believe me. When I first started, I'd charge them the same as any other rental property, until I discovered how much bull **** is involved with federal buildings and realized I was losing money on them. So now, if it says "federal", they're charged much more, simply because I have to.

[BillBrown]

I rent out commercial property, mostly to government agencies.

Make sure you know what you're getting into. Spell out what you don't want to happen in the lease. In other words, describe how far you're willing to go on maintenance, otherwise you're going to get called every day to change a light bulb and you'll suddenly realize you have another career.
Also, make sure you charge enough rent to cover reasonable updates and maintenance.

Some rental properties can be more trouble than they're worth. Some of my highest maintenance leases are federal government. They're charged for it, believe me. When I first started, I'd charge them the same as any other rental property, until I discovered how much bull **** is involved with federal buildings and realized I was losing money on them. So now, if it says "federal", they're charged much more, simply because I have to.

The lease agreement is based on Texas residential lease law.
It spells out what the landlord is responsible for maintaining. There is about a page of fine print dedicated to that.
I've read it and am satisfied with it.

The rent is plenty high. It's as high as it can be and still be rentable.

[birddog1]

I've been trying to rent out a relative's house for them.
I've ran an ad and had plenty of inquiries, but they've all had the same problem.

They want to sign a lease to lock it up. They don't want to move for another month.
I tell them I need a months rent whether they are in the house or not. I can't let it sit for a month without generating revenue.
They won't do it. I can understand why. They'll be paying rent where they are until they move and they don't want to pay double.

I have ran into this several times.

How do the pros handle this?

Does anyone have any experience at it?

Sounds like you are going to loose some revenue either way you go, either renting and not collecting for a month or simply not being able to rent it at all with that stipulation.

It might be in your best interest to cut someone a deal in that situation and only charge them some kind of deposit to hold it until they move in and start paying full rent.

[BillBrown]

Sounds like you are going to loose some revenue either way you go, either renting and not collecting for a month or simply not being able to rent it at all with that stipulation.

It might be in your best interest to cut someone a deal in that situation and only charge them some kind of deposit to hold it until they move in and start paying full rent.

That's about what I've decided to do.
I can't use the security deposit for that, because the law stipulates what that can be used for.

But you're right, it looks like I have the choice of turning down those deals or not renting it at all.
It's doubtful I'll ever find anyone ready to move in immediately.

[RTchoke]

I've been trying to rent out a relative's house for them.
I've ran an ad and had plenty of inquiries, but they've all had the same problem.

They want to sign a lease to lock it up. They don't want to move for another month.
I tell them I need a months rent whether they are in the house or not. I can't let it sit for a month without generating revenue.
They won't do it. I can understand why. They'll be paying rent where they are until they move and they don't want to pay double.

I have ran into this several times.

How do the pros handle this?

Does anyone have any experience at it?

So they don't do a first month, last month and deposit before you move in where you are? If you want to rent a place for say $500/month it's gonna cost you $1000 plus whatever their deposit is upon signing the papers. Doesn't matter if they don't move in for a month, that month is paid just as the last month they are there they don't pay rent because it was already paid.

[BillBrown]

So they don't do a first month, last month and deposit before you move in where you are? If you want to rent a place for say $500/month it's gonna cost you $1000 plus whatever their deposit is upon signing the papers. Doesn't matter if they don't move in for a month, that month is paid just as the last month they are there they don't pay rent because it was already paid.

Yes we do it.
In effect, what these people want me to do is rent it to them, and forgive the first month's rent. Also not collect deposit money until they move in.

Whoever said it didn't sound "kosher" was right, but not the way they meant it:)

[RTchoke]

Yes we do it.
In effect, what these people want me to do is rent it to them, and forgive the first month's rent. Also not collect deposit money until they move in.

Whoever said it didn't sound "kosher" was right, but not the way they meant it:)

Ok.. I see what you are talking about now. I guess I was cornfuzzled for a minute. :razz:

I would have to say "tough ****" for them then. If that's the way they want to roll, let them find another place. My feeling is they can't find one that is willing to do this deal and are trying to push you into it based on the situation (you're not the homeowner, etc.).

I've never known anyone who rents to forgo the first month's rent nor wait for a deposit. All that had to be in hand before you were given a key and could move in. Period. No exceptions.

Look at it this way. If they are like this with the move in costs that to me are pretty much standard everywhere, how are they going to be as renters overall? If they are being a PITA BEFORE they move in, just imagine the fun AFTER they move in.

Damn, I sound cynical. :razz:

[EmmanuelGoldstein]

Yes we do it.
In effect, what these people want me to do is rent it to them, and forgive the first month's rent. Also not collect deposit money until they move in.

Whoever said it didn't sound "kosher" was right, but not the way they meant it:)

Ok, thanks for clarifying. I read your initial post as you wanted the rent for a month before they were allowed to move in. What you describe here is altogether different.

[RTchoke]

Ok, thanks for clarifying. I read your initial post as you wanted the rent for a month before they were allowed to move in. What you describe here is altogether different.

I was a little :confused: about that too until it was clarified. He's asking for nothing that isn't already standard rental practice.

[BillBrown]

Ok, thanks for clarifying. I read your initial post as you wanted the rent for a month before they were allowed to move in. What you describe here is altogether different.

I expressed it poorly, if that's the way it came across.

[mysticbeauty_nbeast]

I've been trying to rent out a relative's house for them.
I've ran an ad and had plenty of inquiries, but they've all had the same problem.

They want to sign a lease to lock it up. They don't want to move for another month.
I tell them I need a months rent whether they are in the house or not. I can't let it sit for a month without generating revenue.
They won't do it. I can understand why. They'll be paying rent where they are until they move and they don't want to pay double.

I have ran into this several times.

How do the pros handle this?

Does anyone have any experience at it?

First..and this is good advice Bill..is pull up the Landlord/Tenant Laws for Texas. You can usually google them up on your computer. Print it out or order a free copy of the booklet to have on hand. These laws are updated every year...so make sure you have the current year in your possession.

Next: Let's say it's nearing the 15th of the month..and you have a couple who wants to move in on the 1st through the 5th of the following month. By law, you can only charge them for the actual 'rental period' from contract date forward. You can offer to begin the rental period (which saves the property for said couple) on say the 20th or 25th of that month..even though they won't move in until the 1st through 5th of the following month. You would break down the monthly rent by day, and add in that daily rent to cover the few days ending the month ..with a full monthly rent due on the 1st through 5th. (Hope that makes sense)

Now, you can't expect people to pay a month in advance for a property they won't inhabit until the following month. However, you can offer a week or two early at a day to day rate to 'save' the property for that person. It's legal..and usually is fairly normal when renting to people who are moving from one 'contracted' property to another contracted property.

Deposits. You have two ways to go here. You can charge first months rent and a cleaning deposit.....or...first months, last months rent...or...first months rent and a security deposit. Cleaning deposit and security deposit are not the same thing, nor do they cover the same thing. Security is for 'damages' sustained to the property during their tenancy that isn't covered under general landlord maintenance laws of your state. Cleaning deposit is to ensure the property is move in ready at the end of their tenancy..but doesn't cover 'any' damages sustained during their tenancy. If I were you, I'd go first months rent and a security deposit. The security deposit is not to exceed one months rent in total.

Now there are other 'deposits' you can attach to the rental agreement. Like 'Water " furniture' deposit. This is usually the cost of one months insurance for 'water' damage. Pet deposits; this is usually the cost of replacing a room or two rooms worth of carpet...or the cost of a full house deodorizer/stain removal for the square footage of the home. You can also put in a caveat on what 'pets' are allowed on the property during tenancy of residence.

There are other caveats you can place into the rental agreement as well. For instance, in California, it is the landlords responsibility to pay for sewer, garbage, water. In just the last years or so, the landlord has been released to either add in the cost of garbage, sewer, and water to the rental price of the home....or...add in a separate monthly bill for these items that is expected with rent and paid by the tenant.

If your property is ready...meaning, carpets and floors are clean, screens are in good condition and are present on all windows, all door locks work, electrical/gas appliances are in good working condition; and any sprinklers, facets, bathroom accessories, cabinets, flooring other then carpet, walls, ceiling and ceiling implements such as lighting fixtures all work and are in good condition...then your ready to go. You don't have to change a light bulb as that is a usury item that is at the expense of the tenant. Garbage disposal breaks....then that's all your's. Fairly straight forward stuff. Unless the tenant broke the disposal by 'mis-use' of item..then you fix it and charge the repair to the tenant.

Let me know if I can be of help. My Mom has been in property management for over 30 years now...and is also a broker. So there's not much I haven't seen or heard of when it comes to rental property.

~Mysty

[BillBrown]

First..and this is good advice Bill..is pull up the Landlord/Tenant Laws for Texas. You can usually google them up on your computer. Print it out or order a free copy of the booklet to have on hand. These laws are updated every year...so make sure you have the current year in your possession.

Next: Let's say it's nearing the 15th of the month..and you have a couple who wants to move in on the 1st through the 5th of the following month. By law, you can only charge them for the actual 'rental period' from contract date forward. You can offer to begin the rental period (which saves the property for said couple) on say the 20th or 25th of that month..even though they won't move in until the 1st through 5th of the following month. You would break down the monthly rent by day, and add in that daily rent to cover the few days ending the month ..with a full monthly rent due on the 1st through 5th. (Hope that makes sense)

Now, you can't expect people to pay a month in advance for a property they won't inhabit until the following month. However, you can offer a week or two early at a day to day rate to 'save' the property for that person. It's legal..and usually is fairly normal when renting to people who are moving from one 'contracted' property to another contracted property.

Deposits. You have two ways to go here. You can charge first months rent and a cleaning deposit.....or...first months, last months rent...or...first months rent and a security deposit. Cleaning deposit and security deposit are not the same thing, nor do they cover the same thing. Security is for 'damages' sustained to the property during their tenancy that isn't covered under general landlord maintenance laws of your state. Cleaning deposit is to ensure the property is move in ready at the end of their tenancy..but doesn't cover 'any' damages sustained during their tenancy. If I were you, I'd go first months rent and a security deposit. The security deposit is not to exceed one months rent in total.

Now there are other 'deposits' you can attach to the rental agreement. Like 'Water " furniture' deposit. This is usually the cost of one months insurance for 'water' damage. Pet deposits; this is usually the cost of replacing a room or two rooms worth of carpet...or the cost of a full house deodorizer/stain removal for the square footage of the home. You can also put in a caveat on what 'pets' are allowed on the property during tenancy of residence.

There are other caveats you can place into the rental agreement as well. For instance, in California, it is the landlords responsibility to pay for sewer, garbage, water. In just the last years or so, the landlord has been released to either add in the cost of garbage, sewer, and water to the rental price of the home....or...add in a separate monthly bill for these items that is expected with rent and paid by the tenant.

If your property is ready...meaning, carpets and floors are clean, screens are in good condition and are present on all windows, all door locks work, electrical/gas appliances are in good working condition; and any sprinklers, facets, bathroom accessories, cabinets, flooring other then carpet, walls, ceiling and ceiling implements such as lighting fixtures all work and are in good condition...then your ready to go. You don't have to change a light bulb as that is a usury item that is at the expense of the tenant. Garbage disposal breaks....then that's all your's. Fairly straight forward stuff. Unless the tenant broke the disposal by 'mis-use' of item..then you fix it and charge the repair to the tenant.

Let me know if I can be of help. My Mom has been in property management for over 30 years now...and is also a broker. So there's not much I haven't seen or heard of when it comes to rental property.

~Mysty

Thank you, Mysty.
That's exactly the kind of information I was looking for.

BTW- B2 still working here:)

[mysticbeauty_nbeast]

Thank you, Mysty.
That's exactly the kind of information I was looking for.

BTW- B2 still working here:)

Glad I could be of help. Let me know if there is any other questions that you may have...will look them up for you or consult with Mom to find an answer for you.

B2 is still working here too. I can feel the migraine at bay at the base of my head...but it never fully generates into a full on migraine...which means no Imitrex! yeah :clap: Hate that stuff....really really hate it! lol

~Mysty

[BillBrown]

Glad I could be of help. Let me know if there is any other questions that you may have...will look them up for you or consult with Mom to find an answer for you.

B2 is still working here too. I can feel the migraine at bay at the base of my head...but it never fully generates into a full on migraine...which means no Imitrex! yeah :clap: Hate that stuff....really really hate it! lol

~Mysty

That's exactly what my wife says.
She can feel the headache trying to come on, but it never does.
When she feels it she takes another B2 and even that feeling goes away.

[penner01]

That's about what I've decided to do.
I can't use the security deposit for that, because the law stipulates what that can be used for.

But you're right, it looks like I have the choice of turning down those deals or not renting it at all.
It's doubtful I'll ever find anyone ready to move in immediately.My wife is with Coldwell Banker in an office that has a significant rental managment program. I you don't want a lease, it might be tough, but I'd really suggest you at least set down with an agent and let them spell out some options and what you can and can't expect. If you can get them to manage it for you, you will rest a lot easier. And understand, not going with a lease can make it harder for you to get rid of a bad tenent and give you a better expectation of keeping it occupied. Plus, they'll pre-screen the tenants - you know a bad renter can destroy the house.

As for, "I want it next month"....if they won't pony up a deposit you might find they are slow on the rent too. I'd say give them no committment but tell them to get in touch when they are ready to commit.......if it's available you can talk again.

[Pauper66]

I've been trying to rent out a relative's house for them.
I've ran an ad and had plenty of inquiries, but they've all had the same problem.

They want to sign a lease to lock it up. They don't want to move for another month.
I tell them I need a months rent whether they are in the house or not. I can't let it sit for a month without generating revenue.
They won't do it. I can understand why. They'll be paying rent where they are until they move and they don't want to pay double.

I have ran into this several times.

How do the pros handle this?

Does anyone have any experience at it?


Leases are good.

Moving sucks. And paying two rents is tough.Offer them one-two weeks free if they sign a lease. That gives them time to transition to the new place without too much of a burden.

[Samm]

I've been trying to rent out a relative's house for them.
I've ran an ad and had plenty of inquiries, but they've all had the same problem.

They want to sign a lease to lock it up. They don't want to move for another month.
I tell them I need a months rent whether they are in the house or not. I can't let it sit for a month without generating revenue.
They won't do it. I can understand why. They'll be paying rent where they are until they move and they don't want to pay double.

I have ran into this several times.

How do the pros handle this?

Does anyone have any experience at it?

This is really very simple... your position is correct. If someone buys a new house while still living in their old house they must begin making mortgage payments on the new place immediately plus on their old place until it has sold.

However, you must make the choice. Is it better to have the house sit vacant with no rent coming in without a signed lease in hand or with a signed lease? If nobody is willing to rent without the one month grace period, you could be out many more than one months rent. It all comes down to supply and demand... currently it is a renter's market.

[countmein]

Ah Bill, be careful of those that are ready to move in TODAY. From my experience, from managing rental houses, those are the ones usually getting evicted from their present residence.

What's the old saying, a bird in one hand........ if you are seeing this a lot, pick the best applicant and WORK WITH THEM.

Unfortunately, most people who are looking are already in a lease and must give at least 30 days written notice to get out of it. The only way you are going to luck out is coming across someone who is living in their place month-to-month, because their present lease has expired.

Good luck. I manage five houses and at times it can be a pain in the back side. Two weeks ago, I signed a lease, after everything checked out on the app., only to find out that they lied on the app and was being evicted from their present place. I had to go over and change the locks in the middle of the night to keep them from moving stuff in and taking up residency. It all worked out in the end, but not the way that I wanted to spend a Saturday night.

[BillBrown]

Ah Bill, be careful of those that are ready to move in TODAY. From my experience, from managing rental houses, those are the ones usually getting evicted from their present residence.

What's the old saying, a bird in one hand........ if you are seeing this a lot, pick the best applicant and WORK WITH THEM.

Unfortunately, most people who are looking are already in a lease and must give at least 30 days written notice to get out of it. The only way you are going to luck out is coming across someone who is living in their place month-to-month, because their present lease has expired.

Good luck. I manage five houses and at times it can be a pain in the back side. Two weeks ago, I signed a lease, after everything checked out on the app., only to find out that they lied on the app and was being evicted from their present place. I had to go over and change the locks in the middle of the night to keep them from moving stuff in and taking up residency. It all worked out in the end, but not the way that I wanted to spend a Saturday night.


Thanks for the information.
I have already seen that being a landlord is not a job I would like.
People who manage rentals, definitely earn their money.

[curtis123]

I've been trying to rent out a relative's house for them.
I've ran an ad and had plenty of inquiries, but they've all had the same problem.

They want to sign a lease to lock it up. They don't want to move for another month.
I tell them I need a months rent whether they are in the house or not. I can't let it sit for a month without generating revenue.
They won't do it. I can understand why. They'll be paying rent where they are until they move and they don't want to pay double.

I have ran into this several times.

How do the pros handle this?

Does anyone have any experience at it?


You could just amortize a month's rent in with their first year's monthly payments. Say if their payment is 500/mo, have them agree to pay 550/mo for the first 10 months.

You shouldn't have to hold it for them rent free for a month.

[BillBrown]

You could just amortize a month's rent in with their first year's monthly payments. Say if their payment is 500/mo, have them agree to pay 550/mo for the first 10 months.

You shouldn't have to hold it for them rent free for a month.

Thank you for that, Curtis.
I think that might be the best solution.

I think that'll work.