Hey Gang, I'm trying to help my parents out. They have a 4 bedroom house and after this summer after my sister goes off to college they will only be utilizing 1 bed room. They are considering renting out their house instead of selling because the housing market is so bad right now (for sellers). While finding a smaller maybe one story house for themselves to retire in. They are considering using an agency that help you rent out your house but I'm trying to get some information on how they can take care of the issue themselves. I heard that you can find the documents and contracts to rent a house online and other information. Any bit would help. What are your experiences? Thanks.
You should be able to google and find documents specific to the state you live in. We recently found a standard rental contract (for Minnesota) and we are making some adjustments and then will use it. You should also contact their insurance company to see if there is anything they need to be concerned about by having "live-in" renters. Find yourself someone who has just graduated law school and has yet to be licensed to look at the paperwork. Since they aren't licensed yet, they aren't supposed to accept payment.
I would advise them to use a property management company. Do you really want them to have to spend their golden years messing around with trying to screen prospective tenants, collecting delinquent rent checks and evicting tenants? It's a LOT of work and it can really bite you in the ass if something goes wrong. My folks rent out several properties and this is a struggle for them. My step-dad is too nice. He lets tenants walk all over him with paying rent late etc. I’ve been trying to get them to use a property management company for years. A good one will only cost you 10%. Totally worth the trouble, IMO.
