Job Discussion Forums

[Serious_Fun]

sawas dee krup:

I have posted this question on other forums here on Dave's site (without response) in the past...and I am doing so again in the hopes that someone may have some new insight or direction(s) for me.

Do any of you, or anybody that you know, rent out their home while teaching overseas? I do not want to sell my home when I leave for another overseas stint in TEFL/TESL...

I appreciate any URLs or comments that you may have.....

[prairiemaker]

Hello, I do not know if you will see this as it is an older post. This is my first post on here. And I do not know enough about how it works to know if you will see.
I have been teaching since August last year in Korea. I rented out my house and also already have some rental houses. It can be done. I have been a property manager for many years so I felt okay with this. Here are the things I did to make it smooth as possible in my while I am gone.

1. I prepared all my properties as well as possible so that they were in great shape before I left.

2. I made sure I had vonage phone before coming and set up a toll free number so renters could always call me.

3. I made sure I had a list of really good contractors I trusted and contacted them (actually took some to dinner) so they would do the work for me if problems came up and I called them.

4. I made sure renters had plenty of deposite slips and set up online banking with a good bank that would take international drafts. This way I cam monitor when renters pays and also deposite money and make payment to contractors over seas.

5. I think the most important thing I did though, was lower the rent about a fourth of market value. In exchange for this, renters keep and eye on things for me, with each renter watching my other rentals as well. They also keep the places clean and mowed and raked for this amount. I also have other people watching the properties. The renters are required to send me, every four months digtal photos of inside and outside. The renters seem to take pride in the places and there is no turn over becuase I am renting them for three fourths the market value. Of course this only works if you are selective and have good renters to begin with. Credit checks, and rental references, for last two rentals, that can be verfied, is best way to do this. Make sure you are talking to a real manager or property owner when you do this, so you are not talking to their aunt Sally.

I hope this helps. Best Wishes,
Mark

[tedkarma]

I have properties in Phoenix and Tucson and have been an investor since about 1976 - and the very best advice I can give you is to NOT attempt to manage the property yourself.

Hire a pro - they know what they are doing - they know how to evict someone if need be - they know how to keep you away from lawsuits - only they can get the toilet unclogged at 2am your time when an irritable tenant calls you - only they can handle all that needs to be done if you have a fire (I actually had a major fire in a property a couple years ago - NO WAY I could have handled all the paperwork and rebuilding from overseas - right - it doesn't happen often, but are you prepared to quit your job and hustle home to handle it? It took months to get it all done).

There are so many things to consider.

I do agree with prariemaker about keeping your rent a bit below market. Turnover is VERY costly - not so much in vacancies but in repairs and marketing. Better to keep the income stream coming in and minimize maintenance and repairs.

Make sure you get a REAL property manager. Preferably a decent-sized management company - NOT a real estate company. In RE companies the new agents who aren't bringing in any business are usually assigned to do the management headache and you'll find you have a new manager every six months or less. I've had one of my property managers for 15 years - and frankly I worry about when he retires. (But his daughter is taking over - thank God!)

Most property managers charge about 10% of the gross income of the property - so they are motivated to keep it rented. No renter = no income for them too. A good one can save you a fortune and will do all the credit checks, references and will even check criminal history.

I managed my own property for years and frankly, it was such a pain in the *ss - I almost quit investing. Since I've been using property managers (the last fifteen years) I look at it more as a business (which it is) than as a part-time job.

[Serious_Fun]

hey! thank you for the responses...I was surprised to see them after so many months.

I am using a property manager ...it is working out well so far.

thanks again.