As so many of my clients are planning on renting I'd thought I'd share some observations.
The rental price of a property may have nothing to do with its selling price. Generally, we were told that to find the rental price of a property, you took 75% of 1% of the selling price.
Example: Sales price of a property: $500,000. One percent of that number: $5000. 75% of that number: $3750.
But, I'm not finding that. In fact, I'm seeing rental prices closer to 55% of 1%. In the example above, the rental amount would be: $2750. And, that's what I'm finding. Why? Probably because there is so much competition and owners are tired of paying a mortgage payment on a vacant home.
Also, I'm seeing where the owners expect the tenant to maintain the house, to the extent that the tenant must replace furnace filters; pay for lawn maintenance and repairs. So, expect if you rent a home that you will be taking care of it, as though it was your own!
I've also suggested to my clients that they video the property (with a date stamp) prior to taking possession. And, in addition take pictures of damage to the property when they start their lease. Make two sets of pictures. Send one set, via certified mail, to the owner or management company. Put the other set in a safe deposit box. You don't want to loose your security deposit because you can't prove that the damage was there prior to your moving in.
Expect to pay the security deposit and the first month's rent with a certified or cashier's check. The owners want to know that the money is good. Usually, thereafter, you can pay by personal check. But, again, make sure that your check arrives early. Rent is due on the first of the month, generally. Make sure that your check arrives between the 25th and 28th of the month, or you'll be paying late fees.
And, pet owners. Expect to pay an additional security deposit which may be non-refundable. Some owners will limit the size or weight of the pet to 30 pounds. And, also many towns and counties limit the number of pets per household. In DuPage, the limit is three pets per household.
It's probably a good idea to hire a cleaning crew to clean up before you move in. And, also use them when you move out. Return the property in better shape and surprize the owners.
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