Korean Job Discussion Forums

[FlagWaver]

So we're thinking of coming back to Korea for one possibly two years and would like to know if anyone has had the experience of renting their home out while they were in Korea. What was it like for you? Did you do it through a property management firm or yourself...would do it again or was the headache worth the equity you built during that time? Did you come back to an empty shell?

[Clutch Cargo]

No problems so far with getting an agent to handle it. They take their cut of the rent and send my mail here along with inspection reports. They get back to me quickly when I email a question to them.

[desultude]

I have had a couple of experiences with renting out property from afar. I would suggest that you have a very reputable company handle it for you, and then have a friend or family member keep tabs on the management company. I have had some bad experiences, and personally would have to think long and hard before doing it again.

[FlagWaver]

Thanks for the responses, I'm looking into some property management companies and I am weighing the options of selling now or when we come back from Korea.

Just wanting to know if it's smarter to keep and rent out or sell now and buy later.

[Homer]

We bought a house in Canada back in 1999 and have been renting it since then. It is paying for itself basically.

The issue might become taxes if you rent a house under your name then you will have to pay canadian taxes on your Korean income.

[The Den]

My wife and I rented our home this year to a couple with a family. We were uneasy putting an ad in the paper and renting to just "anyone" so we found a nice family through a person I work with. Anyway now we are having some problems because they are moving out. Even after discussing the situation. Apparently they found a great deal on a house that they just could not pass up. We were a little angry about it because they promised us they were going to live in and take care of our house for us until we go home next August. Now we have to find renters for 7 months and they have to be willing to move in at the beginning of January, the coldest, darkest time of the month where I am from. So I have to agree with other posters. Jack up the rent and use the extra money to hire a property manger to take care of it for you. If we had done that from the beginning we would not be having this problem. I guess hindsight really is 20/20.

[Cuatemoc]

9 months, no major problems -knock on wood. I've got a reliable long-term renter, so I basically employed her as the property manager. I took a pretty sizable deposit, though, which she loses if she bails out or trashes the place. A friend looks in once in a while as well. I spent a few years customizing the place into a low-maintainence rental but I've probably just been lucky.

In the States a great way to lose a lot of money is to buy and sell houses within a short period of time (taxes, commissions, financing costs, and the fact that you don't start touching the principal on your loan for years). Ever notice how real estate salespeople are always saying that everyone should move every 5 years? For a straighter story on the costs of selling try to talk to a property management company that doesn't have a sales division.

I love that equity and with all the spare cash over here it's easy to put some of it into the pricipal on the loan. Check out a loan calculator to see the miracle (from a bank's pov) of compounded interest and the mindboggling amounts you can save by getting into that principal early.

[FlagWaver]

All,

Thanks for your replies. I think for sure I would want to keep the house to rent out through a good management company, my brother also lives in town and I have another homie in the hood up the skreet that can keep an eye on the house while we're in Korea. We built new about 2 years ago so renting out after all the sweat I put into the yard will be depressing, but you're right about the equity. Thanks again for the advice.