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  1. #1
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    Default Renting out your house

    So we bought a house about 18months ago. We had about a 5 year plan to stay here and then look to move away, but DH has gotten sick of his job and I've been ready to leave since we got here lol so now we are leaving. I'm trying to decide what to do with our house. I'm leaning towards renting it out, means that we will always have the house to fall back onto if we do decide to come back to where we are.

    I just want to hear about you good and bad stories about renting your houses out? and if given then chance would you do it again?

    I plan to have lots of insurance if that makes a difference.

  2. #2
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    I had a good experience overall. I suddenly found myself single with a huge mortgage only a few years after building a new home, and hadn't built up enough equity to make selling it a feasible option. So I rented to a young family for a few years before finally selling so I could buy my next place in a more convenient location.

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    I wouldn't do it. Especially if you would be relying on the rent to make payments. My experience has been ALL bad over a period of about 5 years... (multiple agents and tenants too). Having said that, it works great for some. You also need to weigh up the loss of stamp duty if you sell and the cost of capital gain if you don't among a million other things :-)

    Good luck with your decision.

  4. #4
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    Depends if you can cover the shortfall between the rent and your mortgage repayments plus the other costs.
    If you are negatively geared you can reduce your tax liability.
    If there is an army / Air Force base near you you could look into renting to DHA. They pay a bit less than market rent but you have the security of a longer term lease.
    Good luck.


    Me 39 DF 35
    DD ICSI April 2011
    DD natural November 2013

  5. #5
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    We are about 1.5hours from an Airforce base so don't think that's an option. We will be moving somewhere that a house is supplied so will be able to cover mortgage repayments if the house were to be empty or in between tenants. I think we may possibly be able to rent it for slightly more then our repayments but I'm not entirely sure at the moment. Do you know if you can get a real estate agent into work out how much you could rent it for?

    If we sold it now we'd be selling for a loss, I don't think it'd be a major loss but would definitely not be gaining anything. It's possible that in 5 years we might like to return where the house is since it's where all my family is, but I don't know that we'd come back for sure.

    Why were the reasons some didn't like the renting out experience? Bad tenants? Non payers etc? or another reason entirely?

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    Hi we are kiwis residing perm in australia and we left behind our house in nz nearly 7 years ago and its the best decision we ever made by renting it out under an estate agency just too hard to deal with the things that might need to be fixed. Over time we changed our agents to a company that just dealt with rentals and we found they were excellent and their tradies great too.

    But def you must get at least 3 agents etc to give you and your dh prices on rental income etc and make sure you enquire about inspections because some places charge you for this service and also something which we feel comfortable for is any repairs under $200 should be automatically dealt with.

    But question everything and even if you decide to manage the house yourself please get a credit check on every tenant this is extremely important because it can all go pear shaped if you have a tenant who decides not to pay their rent on time.

    Good luck.

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    Be prepared for the tenants not to look after the place like you do. It's so disappointing to see your home (yes I was emotionally attached to our house) slowly deteriorate. It's all little things, like the gardens, but it's frustrating. Also be prepared to be contacted for everything. We will get maintenance requests for all sorts of things, things that we would just fix ourselves if we were renting a property. For us the maintenance requests are never ending.... The thing that annoys me for example is as the landlord we have to clean the flue for the fire place.... They use it, they clog it up and then we have to pay to have it cleaned. So annoying! I see it like an oven - they use it they clean it, but apparently it's our responsibility. Sorry for having a vent, but there are so many things we weren't aware of when we rented our home out and to me it's not worth it. But we would have lost money if we sold it..... Oh well fingers crossed it lays off in the end.

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    I am in a similar situation. We would lose money if we sold but I cannot bring myself to rent it out. It is a brand new house and the thought of people mistreating it kills me.

    The market is supposed to pick up in a couple of years but hopefully I will have settled in by then.

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    Sounds like a bit of a no brainer to me - definitely rent it out if you are going to make a loss and are capable of covering the payments if/when you are without tenants. It's good to be aware of the downsides (the law is geared towards supporting the tenants rather than a landlord in most situations) but I'd say the downsides are better than losing money in a quick sale.

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    Quote Originally Posted by Shebes View Post
    Be prepared for the tenants not to look after the place like you do. It's so disappointing to see your home (yes I was emotionally attached to our house) slowly deteriorate. It's all little things, like the gardens, but it's frustrating. Also be prepared to be contacted for everything. We will get maintenance requests for all sorts of things, things that we would just fix ourselves if we were renting a property. For us the maintenance requests are never ending.... The thing that annoys me for example is as the landlord we have to clean the flue for the fire place.... They use it, they clog it up and then we have to pay to have it cleaned. So annoying! I see it like an oven - they use it they clean it, but apparently it's our responsibility. Sorry for having a vent, but there are so many things we weren't aware of when we rented our home out and to me it's not worth it. But we would have lost money if we sold it..... Oh well fingers crossed it lays off in the end.
    I am a single mum with 6 kids still at home and I receive letters after inspections thanking me for taking such good care of the property. The owner of my house fixes nothing at all. ever. You also may find the tenants were not allowed to fix anything . I am not allowed. If there is something that needs fixing I must contact the agent and if I fix it myself and the owner feels it isn't ok I will need to pay him compensation. Tennants find it just as hard to find a decent owner who looks after good tenants. I have a great record for renting so its not all bad.
    Its a shame not all owners are told what we are told about not fixing things our self as this may have given you more understanding also.

  11. The Following 3 Users Say Thank You to Crazyfamily For This Useful Post:

    Ashram  (16-08-2014),LaDiDah  (16-08-2014),Pusheen The Cat  (16-08-2014)


 

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