How To Score That Rental Home – And Get The Best Price
This is something I am very familiar with. I’m looking to rent a home in my area, and I’ve been shopping around for a couple hours each day to find the home I want. Here’s a few tips for scoring that property at the price you want.
1.Find an Area
Chances are that most places which eagerly seek tenants are some of the poorest choices in the community. There are literally whole city blocks in my town loaded with larger homes converted into two units and some very large homes, one of which was converted into 13 1-person studios. For me, I require a lot more space so I had to look past these kind of properties. I need a home office, so I’m looking for much larger homes, even if they come at a premium.
2.Homes For Rent
Something I have noticed is that many landlords are terrible at finding tenants. They put up a home for rent sign in the front yard, but if you don’t drive by the area, you’re unlikely to ever see it. Check out Craigslist to see available homes for rent.
3.Avoid Collegiate Areas
Homes near colleges are extremely inflated in price and unlikely to make good family homes. $80,000 homes near a private college in this area rent for $1200-$1500 per month, an insane amount of money. The college costs $40,000 per year to attend, so it should only be expected that students have plenty of money to spend on living expenses. A half mile north of the $1200-$1500 homes are larger, nicer homes catered to families that rent for $7-800 per month. A huge difference in price for a very little difference in home quality and location.
4.Find Investment Prop Real Estate Agents
Some real estate agents sell investment properties near exclusively while others hardly touch them. Start making a list of real estate agents that broker investment properties and get their contract details. You see, its much easier to sell an investment property that comes with a contract. Homebuyers would love to swoop in and buy a home with a $600 mortgage that brings in $900 a month in cashflow. Send out a FAX to any investment real estate brokers and tell them what you need, you’ll be surprised at the interest in renting out investment properties.
5.Every Home Is For Rent
In this market, virtually every home for sale is also for rent. Often times even more expensive suburban homes can be rented. Often times the owner has already downsized and is looking to just pay the bills on their other real estate, help them pay the bills and score the home you want. Call up home sellers and ask if they’re willing to rent, leave your contact details and should a sale never come, you might get a home to rent at a distressed price.
6.Rent To Own Is Back
If you’re looking to rent and perhaps buy a home in the near future, rent to own is an excellent opportunity. At least in my local area, sellers are more than willing to rent pending that you’ll make an offer on the home when the lease expires. You might pay a premium to buy the home after renting, but you’re never contractually obligated to buy.
7.Do Some Investigating
Check out your county assessor to see how much the owner paid for the home and at what time the home was bought. If it was purchased in 2001-2003 you’re in luck, interest rates were nothing so monthly mortgage payments are similarly tiny. Run an amortization table to find out how much the owner is paying and look to pay a small premium over that monthly payment.
