finding a tenant for a property

babyfacek

Well-Known Member
Joined
Jun 30, 2014
Messages
139
So this is my first time doing this and i have an apartment i need to rent out. Because of my financial situation i want to use the private property assisted package on their website. Does anyone have any reviews on that and does it work? unfortunately i cant afford an agent at the moment.
 

beefymoocow

Expert Member
Joined
Jun 19, 2006
Messages
1,290
So this is my first time doing this and i have an apartment i need to rent out. Because of my financial situation i want to use the private property assisted package on their website. Does anyone have any reviews on that and does it work? unfortunately i cant afford an agent at the moment.

Remember if you can’t afford an agent maybe consider selling the property. Because if you can’t afford an agent. Can you really afford to evict someone. Don’t think people should go into property if the have cashflow/liquidity problems.
 

Sicilian-Najdorf

Active Member
Joined
Aug 27, 2018
Messages
92
So this is my first time doing this and i have an apartment i need to rent out. Because of my financial situation i want to use the private property assisted package on their website. Does anyone have any reviews on that and does it work? unfortunately i cant afford an agent at the moment.

You could rent it out yourself without an agent. I suggest you get rental insurance. I don't know if these companies are still operating though because of Covid and lockdown.

Like @beefymoocow said, what happens when the tenant doesn't pay? Then you'll have bigger problems than an agent's commission.

If your livelihood depends on the rental income, make sure you have at the very least the equivalent of 3 months rent stashed somewhere. Problem tenants are common....
 

op365

Well-Known Member
Joined
Apr 29, 2010
Messages
208
Agree with @beefymoocow above. Use an agent especially if you are going to be far away from the property.
Negotiate with the agents on fees and value adds.
Right now people credit scores are shot and getting a "good" tenant is difficult.
 

Tman*

Expert Member
Joined
Jul 18, 2012
Messages
4,624
Agree with @beefymoocow above. Use an agent especially if you are going to be far away from the property.
Negotiate with the agents on fees and value adds.
Right now people credit scores are shot and getting a "good" tenant is difficult.
Hold up, there is a big difference in getting an agent to find you a tenant and getting an agent to manage your property.

You can easily find your own tenant and avoid the agent fee by advertising on local websites. I recommend private property (it's free for one property at any given time) then use TPN to do background checks etc.

If you are not living close to the said rental property definitely get someone to manage it.
 

beefymoocow

Expert Member
Joined
Jun 19, 2006
Messages
1,290
Hold up, there is a big difference in getting an agent to find you a tenant and getting an agent to manage your property.

You can easily find your own tenant and avoid the agent fee by advertising on local websites. I recommend private property (it's free for one property at any given time) then use TPN to do background checks etc.

If you are not living close to the said rental property definitely get someone to manage it.

I’m more referring to the fact the op is short on cash. Renting out a property is quite risky. And could cost you allots. I would rather sell at a lower price and buy equities.
 

zerocool2009

Executive Member
Joined
Sep 4, 2009
Messages
7,390
Make gumtree and private property adds! Do research on pricing, and market it!

Do background checks! See it as an interview! Bank statements, call his work, his previous landlord too!
 

joker08

Expert Member
Joined
Sep 4, 2018
Messages
1,819
So this is my first time doing this and i have an apartment i need to rent out. Because of my financial situation i want to use the private property assisted package on their website. Does anyone have any reviews on that and does it work? unfortunately i cant afford an agent at the moment.
How can u not afford an agent ? They charge u 5% of the rental income u are going to receive. Nothing out of ur pocket before hand..
 

Sicilian-Najdorf

Active Member
Joined
Aug 27, 2018
Messages
92
Also keep in mind that you can claim back from tax for any out of pocket expenses for the rented out property...Rental agent commission being one of them.
 

Pineapple Smurf

Pineapple Beer Connoisseur
Joined
Aug 2, 2016
Messages
41,950
Yeah
I would never rent out home property
Too many skelms around
I would rather Air BNB, I know with covid etc its a kak time to rent but thats what I would do.

A friend of mine has a tenant that lives on same property and they cannot evict him. He pays his rent on time but is a total nuisance on drugs running down the streets at night shouting and screaming and talking to himself. Total nightmare for the entire neighborhood. Cops have been called many times but don't do anything.

This has been going on for a year now, maybe a bit more.

Anyways, going off topic here now @babyfacek but my point is if you cannot afford a property rental agent (and believe me they are kak coz all they care about is their 10% commission, someone here said 5%, no idea where that is) but anyways, please don't go ahead with what you want unless you have these 2 things in place:

1) Written rental contract (I know 20 years ago you could buy an off the shelf one at CNA for 50 bux)
2) Stipulate that this is a short-term contract, ie 3 or 6 months. This way you will learn a hell of a lot from renting peoples. As time goes on change it to 12 months. If only my bud had done this then there wouldn't be a problem today for him. You gotta learn from your own mistakes, all the best

Im gonna ping @chrisc here as he may be able to offer advice as he has been letting out his own property for a number of years
 

babyfacek

Well-Known Member
Joined
Jun 30, 2014
Messages
139
Remember if you can’t afford an agent maybe consider selling the property. Because if you can’t afford an agent. Can you really afford to evict someone. Don’t think people should go into property if the have cashflow/liquidity problems.
Cant really sell it now. I will make a bigger loss than if i hold on to it and hope things will level up.
 

babyfacek

Well-Known Member
Joined
Jun 30, 2014
Messages
139
You could rent it out yourself without an agent. I suggest you get rental insurance. I don't know if these companies are still operating though because of Covid and lockdown.

Like @beefymoocow said, what happens when the tenant doesn't pay? Then you'll have bigger problems than an agent's commission.

If your livelihood depends on the rental income, make sure you have at the very least the equivalent of 3 months rent stashed somewhere. Problem tenants are common....
thanks
 

babyfacek

Well-Known Member
Joined
Jun 30, 2014
Messages
139
Agree with @beefymoocow above. Use an agent especially if you are going to be far away from the property.
Negotiate with the agents on fees and value adds.
Right now people credit scores are shot and getting a "good" tenant is difficult.
the few i approached told me finding the tenant is the rental for the first month and 10% for them to manage. They did say they could be wiggle room though not much.
 

babyfacek

Well-Known Member
Joined
Jun 30, 2014
Messages
139
Yeah
I would never rent out home property
Too many skelms around
I would rather Air BNB, I know with covid etc its a kak time to rent but thats what I would do.

A friend of mine has a tenant that lives on same property and they cannot evict him. He pays his rent on time but is a total nuisance on drugs running down the streets at night shouting and screaming and talking to himself. Total nightmare for the entire neighborhood. Cops have been called many times but don't do anything.

This has been going on for a year now, maybe a bit more.

Anyways, going off topic here now @babyfacek but my point is if you cannot afford a property rental agent (and believe me they are kak coz all they care about is their 10% commission, someone here said 5%, no idea where that is) but anyways, please don't go ahead with what you want unless you have these 2 things in place:

1) Written rental contract (I know 20 years ago you could buy an off the shelf one at CNA for 50 bux)
2) Stipulate that this is a short-term contract, ie 3 or 6 months. This way you will learn a hell of a lot from renting peoples. As time goes on change it to 12 months. If only my bud had done this then there wouldn't be a problem today for him. You gotta learn from your own mistakes, all the best

Im gonna ping @chrisc here as he may be able to offer advice as he has been letting out his own property for a number of years
very informative. I will try the shorter term leases as a start.
 

3WA

Honorary Master
Joined
Sep 25, 2012
Messages
16,037
the few i approached told me finding the tenant is the rental for the first month and 10% for them to manage. They did say they could be wiggle room though not much.

Try House.me or Preferental. Much cheaper than traditional agents. I'm with House.me. They're not competent, but they try.
 

beefymoocow

Expert Member
Joined
Jun 19, 2006
Messages
1,290
Cant really sell it now. I will make a bigger loss than if i hold on to it and hope things will level up.

Is it more then 30% loss. If not, if you use the money to buy reit shares. You will be net zero position? The index is down 30% so if you sell your property at a 30% loss. You should be neutral.
 

Tman*

Expert Member
Joined
Jul 18, 2012
Messages
4,624
How can u not afford an agent ? They charge u 5% of the rental income u are going to receive. Nothing out of ur pocket before hand..
I can't afford an agent either.

Based on doing 5min of work to find a crappy tenant and charging a premium.
 
Top