Renting my home, USARMY activated

[mzbmer]

What is the name of your state? Maryland

Hello I am in the Army Reserves and have just been activated, I will be leaving within the next few months for active duty for the next year, I will be located state side (NJ). My next door neighbor has just asked me (1/2 hour ago) if I would be willing to rent out my home to his cousin, I just moved into my home last year (town house). I said I would consider it, however I would need alot of information about and from his cousin and Him (next door neighbor). I guess my questions would be is
1) do I need a Laywer?
2) should I have the neighbor cosign
3) my mortgage is 1375.00 per month he can't aford all of it, what should I charge for rent of my home, if I decide to go along with this. (The Cousin is now living with my neighbor, and the neighbor and his wife are exspecting a 2nd baby in march).

The reason that I would rent is to help out a neighbor and that the upkeep of my property would be maintained.....any help would be greatly appreciated, good, bad, or indifferent

I also Informed the neighbor that I did not want to end up on Judge Judy!!

 

[mzbmer]

You guy's knew I meant Lawyer right?? don't hurt me please

 

[abezon]

Go to your local bookstore & buy a book on L/T laws. Nolo press publishes good self-help legal books. Renting is probably a good idea IF you can find a good tenant. Even if the rent doesn't cover your mortgage, any rent you receive lowers the amount you have to pay on your mortgage.

As for what you should charge -- check the local rental market to see what apts like yours rent for. Be sure to get a lease with a definite start & end date. You might visit a few property management firms & pick up sample leases.

Now, as to who should be your tenant: this cousin is sponging off your neighbor right now. Presumably this is because he can't afford to get his own place. RED FLAG!!! This does not look like a good tenant risk to me. At the very least, get the neighbor to cosign. Be careful of deals where you give a tenant a break on rent in exchange for them taking 'extra good care of the property'. What's 'extra good care'? Also, you may have a bit of difficulty inspecting the place and making sure the tenant is keeping things in good repair & clean.

Don't give a sweetheart deal on rent just because you want to help out your neighbor. If the standard in your area is $1200/month, with 1st, last & security dep up front, you'll have your pick of tenants if you advertise at $1100 and screen them very carefully.

 

[Cvillecpm]

You have a really good web resource at www.mrlandlord.com. Other MD landlords can be responsive to your specific questions for your area in MD...just post on the Q&A section.

Make sure your mortgage company knows you are going "active" and that any mortgage rate is reduced.

Good luck and travel safe.

 

[FarmerJ]

Talk with a proffessional property management company and find out what the fees would be for them to manage the unit for you If it is something you can deal with considering the mortgage as well by all means it might work better for you going that route . they will screen tenants for credit and court historys , and certainly be able to evict a tenant on your behalf alot easier while your away .

 

[mzbmer]

You Guys are awesome thanks for the reply's , your right, I just found our that this person doesn't even have a job yet, and since i will only be in NJ I can take care of my own yard on the weekends

if I do rent i need to find out what the actual rental market is in my community...and I will probaly not rent to this loser!!, because he is now just mooching off of his cousin..hmmmmm well hell thats interesting..I will look at my other options...thank you soooo much and have a happy NEW YEAR!!

I LOVE THIS SITE!!!

 

[mzbmer]

Cvillecpm

Thank you for your immediate reply, Yes all of my interest rates will drop down to 6% until Im finished with my tour of duty!! all of you please stay safe!!

 

[JETX]

One more suggestion.... tenants are notoriusly lousy 'gardeners'. Contract with a local lawn mowing service and include that cost in your rent considerations also. You don't want to lose a couple thousand $$lawn and landscape during your absence!

Oh, and you get to write the cost off as an expense!!

 

[mzbmer]

Thanks JETX, thats a Great idea, I've contacted my Mortgage company and they are willing to work with me on these issues...SOO DA@! INSANE WATCH OUT, HERE WE COME!!