As I mentioned in a previous post, my first home purchase was a condo just outside Atlanta. It was a great home and I did not want to sell when my husband and I moved to New York in 2012. I had a mortgage on the condo and monthly HOA fees, so I decided to rent out the home. At the time, I was just hoping to cover my monthly expenses.
My goal was to rent the property and spend the least amount of money possible. The move to New York was expensive and the difference in the cost of living from Atlanta to New York was a hard pill to swallow! My husband and I were trying to save every dollar we could. I came up with a strategy to rent the condo on my own, versus using a real estate agent. This strategy took more work, but saved me a lot of money. In order to do this I followed the below steps.
- Research
- Prepare
- List
- Lease
1. Research
First, I researched comparable homes in the area. Since I had a condo I searched for 1 bedroom apartments that had similar amenities like washer/dryer in unit, outdoor patios, swimming pool, tennis court, etc… There were 3 different apartment complexes within a mile radius of the condo. I looked at the photos of the apartments to ensure they were comparable to the condo. Then, I considered the monthly rate for the apartment when deciding on a list price for the condo. I also kept in mind that I had a mortgage, HOA fees and insurance to pay on a monthly basis. The rent I charged had to cover those expenses. Luckily, the apartments in the area were going for a rate that would allow me to pay the monthly expenses on the condo and also pocket a few bucks!
2. Prepare
In order to Prepare the condo for rental I had to ensure it was in a state to rent to a tenant. I made sure all appliances were working, there were no leaks and nothing was in disrepair. A fresh coat of paint can also help give the home a clean look! My husband and I had been living in the condo for three years, so everything was working fine. I did add a handle to the sliding glass door to the patio and repaired the front glass storm door to ensure bugs or debris did not come in under the door. Other than that, the condo was in great shape.
Next, I had the apartment cleaned. It’s amazing what a mess you make packing up boxes and moving furniture! Most of the condo was hardwood and tile floors. I had the carpet in the bedroom and closets cleaned.
Once the condo was presentable, I took photos. The photos were not professional, but I made sure there was good lighting and tried to highlight desirable features of the condo, like the updated kitchen and bathroom. (If you are like me, you look at pictures of the kitchen and bathroom first when looking for a new home!)
3. List
Now that I had decided on a monthly price and had photos I was ready to List the condo. I listed the condo on realtor.com for FREE. A great feature of realtor.com is that you can request that prospective renters complete background checks, at their expense. It took me about 20 minutes to post the condo on realtor.com. I made sure I picked the best picture of the kitchen as the cover photo. Also, I “sold” the condo in the description. I mentioned all the upgrades and amenities, like the swimming pool and tennis courts. Also, the proximity to restaurants, shopping, entertainment as well as being close to two major interstates. When I wrote the description I tried to remember why I bought the condo in the first place. These were the same things renters would be looking for!
Within a week, I received multiple inquiries from prospective renters. Whenever I spoke to them I was clear that the price was non negotiable and I required first, last and one month security up front. I wanted to make sure I was not wasting my time with renters who were not serious. After a few showings I found a great tenant, who has lived in the condo for over 8 years!
4. Lease
After selecting a tenant, I created a Lease on Rocket Lawyer’s website. This cost about $39, but it was worth it to get a lease that covered both myself and the tenant. I used Rocket Lawyer because you can tailor the lease to your needs and it includes all necessary items based on the state where the property is located. (I have used it for leases in multiple states and it is a great tool!)
There were other helpful features that were part of lease, like a move-in checklist that allowed the tenant to advise if there were any issues prior to moving in. I saved this checklist to show that the condo was in good condition when the tenant moved in. If for some reason something was broken during the lease period, it could be taken out of the security deposit. Another great feature is e-signing. The tenant and I were able to e-sign the lease, which saved us both time! Once the document was signed it could be saved as a PDF file. I would highly recommend Rocket Lawyer if you are renting out properties!
I found the above steps to be very helpful in renting out my condo.
Have you ever rented out a property? If so, did you use a different strategy or different tools? I look forward to hearing what has worked for you. If you have found this helpful or have any questions please leave a comment!
Stay Blessed,
Jess
