7 votes

Does anyone have any experience in renting their home out and being a landlord?

I am helping my parents rent out their place in Seattle. I posted it on Zillow, we got tons of traffics and interest. I now need to get the rental agreement in order.

Does anyone have an informed opinion on where to get the agreement template from? I see at least 2 good options, please help me choose.

  1. Legal Zoom ($29)
  2. eForms (Free)

9 comments

  1. Akir
    Link
    Contact a lawyer. It sounds trivial, but it will save you heartache. My parents rented out a mobile home twice at practically nothing for two families, and both of them trashed them and made them...

    Contact a lawyer.

    It sounds trivial, but it will save you heartache. My parents rented out a mobile home twice at practically nothing for two families, and both of them trashed them and made them biohazardous!

    10 votes
  2. [2]
    MimicSquid
    Link
    This is an area where having a professional handle the situation is really invaluable. I strongly recommend using a property manager rather than trying to do it yourself.

    This is an area where having a professional handle the situation is really invaluable. I strongly recommend using a property manager rather than trying to do it yourself.

    6 votes
    1. Neverland
      (edited )
      Link Parent
      Well, oddly enough I used to manage the biggest vacation rental company in the Florida Keys. So I do have a lot of experience in that regard. It's mostly a dispatch job, I'll manage it for now....

      Well, oddly enough I used to manage the biggest vacation rental company in the Florida Keys. So I do have a lot of experience in that regard. It's mostly a dispatch job, I'll manage it for now. But in a crazy twist of fate my first showing was to one of these guys.. (Link removed) They have a serious list of maintenance people, and I really hope they rent.

      Is that a dick move to post that link? Decided it was

      3 votes
  3. [5]
    Lawrencium265
    Link
    I've been renting out our previous home for over 3 years now. I found a lease online by searching for "lease (state)" and read through a few to get a feel for what I wanted in there, you'll want...

    I've been renting out our previous home for over 3 years now. I found a lease online by searching for "lease (state)" and read through a few to get a feel for what I wanted in there, you'll want to read up on state and city laws regarding this as they all have different rules, you may need a city permit. You don't necessarily even need a written lease (obviously you should have one) it mostly just outlines the specifics of the property that you're renting out, which utilities you'll cover and what they'll cover, when rent is due, lease term, what payment method you'll accept (I recommend using cozy.co for doing background checks and receiving payments) . The lease I chose is 8 or 9 pages long and I've added things over time to be more specific.

    3 votes
    1. [4]
      Neverland
      Link Parent
      Thanks for the reply. I found the local ordinances, and they should be no problem. We used Zillow for the background and credit score so far, it costs the applicant $29. May I ask what kind of...

      Thanks for the reply. I found the local ordinances, and they should be no problem. We used Zillow for the background and credit score so far, it costs the applicant $29.

      May I ask what kind of items you added to the lease over time?

      2 votes
      1. [3]
        Lawrencium265
        Link Parent
        I had one Tennant get a satellite dish on the roof without asking first and the installer did a pretty bad job, you're not technically allowed to ban satellite dishes, but if they want one they...

        I had one Tennant get a satellite dish on the roof without asking first and the installer did a pretty bad job, you're not technically allowed to ban satellite dishes, but if they want one they have to ask first and it has to be on a pole in the backyard. I clarified the lawn care section as one Tennant would go too long before mowing. I added that Tennants are responsible for drain clogs. I only allow electronic payments through cozy and i was tired of dealing with checks to a p.o. Box.

        3 votes
        1. [2]
          Neverland
          Link Parent
          Thank you very much for those items. And thanks for cozy.co, I had forgotten all about it. I’m torn between them and Zillow for these services.

          Thank you very much for those items. And thanks for cozy.co, I had forgotten all about it. I’m torn between them and Zillow for these services.

          1 vote
          1. Lawrencium265
            Link Parent
            I learned a lot from listening to the 'bigger pockets' podcast. They are mostly full of it, and often try to push their expensive online tools but they have guests on every show and they bring up...

            I learned a lot from listening to the 'bigger pockets' podcast. They are mostly full of it, and often try to push their expensive online tools but they have guests on every show and they bring up all kinds of different things they've encountered. There's also a bigger pockets forum, but i think it's mostly full of people trying to network.

            2 votes
  4. NoblePath
    Link
    I'll repeat: hire a lawyer. States vary in how landlords can get tenants out, what landlords can do with the deposit, what terms can be in the lease, and if landlords get it wrong they can be sued...

    I'll repeat: hire a lawyer.

    States vary in how landlords can get tenants out, what landlords can do with the deposit, what terms can be in the lease, and if landlords get it wrong they can be sued for unfair and deceptive trade practices and worse.

    Downloadable leases rarely handle these issues correctly. And you won't know until you're already in litigation how bad it is.

    Landlord advice:

    Keep good tenants happy, get rid of bad tenants as soon as possible (talk to your lawyer).

    Don't use the cheapest fixtures, but the fancy are a waste unless you are in the real high end (i'd guess 10k 1 bedroom in Seattle).

    real tile can be a pita.

    1 vote