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Thinking of renting - Here is what you should know

By
Real Estate Broker/Owner with JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 10491201242

Thinking of renting - Here is what you should know

These days in the Dutchess County area there are many homes or apartments for rent.  The rental inventory has been added to by homeowners who have not been successful in getting their property sold and are  now resorting to the rental option.

Why people rent:

  • Increasing foreclosures and short sales leave displaced households still needing a place to live.
  • People wanting to buy are unable to qualify for a mortgage.
  • People moving to the area are opting to rent as they watch to see how the present economic condition plays out.
  • Divorce.
  • Many colleges continue to have the need for off-campus housing.
  • Temporary relocation.

Terms you will encounter in the rental market:

The owner will be called the landlord or lessor.

The person renting is the tenant or lessee

In some cases the landlord will request a guarantor- this is more common where students are involved.  This person will pay past due rent or damages in the event the student fails to do so.  Parents are usually the guarantors.

When renting an apartment or other property, the landlord will request a rental application that will ask for references.  Your authorization will also be requested so that a credit check can be made.

If your application is accepted a security/deposit will be requested.  This will usually be 2-3 months of the agreed upon monthly rental.

The lease options should also be discussed.  Some landlords will do a month-to-month rental however the norm is for at least a years lease.  These days, because of the present housing market conditions we are noticing more leases with the option to purchase.

If you intend to paint the apartment or are considering making any type of improvement you must consult the landlord.

The landlord should provide you with disclosures.  If the house was built prior to 1978, you should get a lead disclosure.  Make sure that there are also fire and carbon monoxide detectors present in the unit.

It is important to discuss upfront who pays for utlities as well as what maintenace will be provided by the landlord. This should all be written into the agreement.

You should also be told what the penalty is for being late with the rent,  returned checks, as will as how the termination of lease will be handled.

Before moving in you should walk through with the landlord to note any problems, such as broken windows, damage to walls etc.  It might be a good idea to take a before picture or video to cover yourself.

Keep in mind the landlord's insurance will not cover your personal property so it is a good idea to get your own renter's insurance.

One major concern for many looking for a rental is finding a house or apartment that is pet friendly. This can be a real challenge.  Some landlords will not accept pets because in some cases it affects the cost of the property insurance.  One idea is to let the landlord know what type of pet it is and sometimes a small pet is acceptable.

Jennifer Fivelsdal -Licensed Real Estate Broker

JFIVE HOMES REALTY LLC    845-758-6842

 www.jfivehomes.com or www.midhudsonhomevalue.com   jennifer@jfivehomes.com

 

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  copyright © by Jennifer Fivelsdal all right reserved-Thinking of renting - Here is what you should know

Comments(22)

Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Jennifer, Good post. I receive many calls from people with pets and find it difficult to help find a pet friendly place.

Nov 16, 2008 10:48 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Cynthia - I am sure some of these renters will eventual buy, some are just watching the market at this time.

Bill - That is so true.  I see more agents concentrating on this sector of the industry.

Gita - Rental and pets continue to present a challenge; and it is not only because a landlord don't like pets sometimes it is a cost issue in the form of higher insurance. 

Nov 16, 2008 11:00 PM
Paddy (Patricia) Pizappi
Better Homes and Gardens Rand Realty - Pine Bush, NY
Real Estate Associate Broker Hudson Valley NY

Great explaination Jennifer.  We are seeing a lot of rentals lately. 

Nov 16, 2008 11:07 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Paddy - That is the case ,and more people are looking for rentals.  Have a great day.

Nov 16, 2008 11:30 PM
Donna Paul
Keller Williams Realty Gold Coast - Dix Hills, NY
Long Island Home Specialist,All About Real Estate

thanks so much Jennifer.. I love how you made it simple for everyone to make a decision on wheather to sell to rent....

Nov 17, 2008 12:33 AM
Kim Sellers
Lake Arrowhead, CA Coldwell Banker - Lake Arrowhead, CA
Lake Arrowhead Realtor - BRE#01412099 - Lake Arrow

Great information Jennifer.  It is a unfortunate thing with so many people losing their home and knowing what to expect is a must.

Nov 17, 2008 06:42 AM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Donna It is my hope this will be helpful.

Kim I couldn't agree more.

Nov 17, 2008 08:34 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jennifer, it has been a long time since I have rented so thanks for all the info.  These days with the interest rates as low as they are, and house prices being good, they might want to compare the rent on a unit to what they would be able to purchase for the same amount.

Nov 17, 2008 08:36 AM
Leander McClain
North East, MD
Cecil & Harford County Realtor

Jennifer - excellent information.  For some people renting is the best option.  Thanks for providing this valuable information.

Have a great day

Leander

Nov 17, 2008 11:25 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

George - That is a good point however many are not in the position to do so even with lower mortgage rate and falling home prices.

Leander -That is so true, for many this is the only option.

Nov 18, 2008 03:45 AM
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker Associate ,CRS,GRI,SRES, Brea,CA, Orange Co

Hi Jennifer,

Good info of anyone looking to rent, or for owners who are thinking of becoming a landlord. Our rental inventory has increased quite a bit here, owners who can afford to keep their home and not sell are landlords by default. I just had this discussion with another agent this afternoon.

Nov 18, 2008 02:28 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Lynda - I think the rental market is changing and the inventory will continue to grow because the housing inventory is not moving fast.

Nov 18, 2008 09:21 PM
Karen Rice Keller Williams Real Est
Keller Williams Real Estate - Hawley, PA
Northeast PA & Lake Wallenpaupack Home Sales

This is helpful info.  We do not handle long term rentals in our area (well a few agents may).  I suspect that we should head in that direction, as many people are looking to rent. 

Nov 18, 2008 10:49 PM
Jennifer Mallory
Keller Williams Hudson Valley Realty - Nyack, NY
Nyack NY Real Estate Broker Associate

Jennifer; In the past few years, I haven't done too many rentals in Rockland County -- everyone wanted to buy. I have been talking with owners who are saying, "If it doesn't sell, we'll just rent it." I don't think that's a great strategy for my market, if an owner isn't committed to holding on to the house for at least another 5 years. It will be interesting to see what happens to the rental market in the next year as foreclosures start to hit Rockland. Landlords want people with great credit...but if you had great credit, why wouldn't you buy in this market???

Nov 20, 2008 12:44 AM
Yvette Smith
LONG & FOSTER - Williamsburg, VA
Realtor In Williamsburg VA, Homes for Sale

HI JENNIFER!

Now, this is a post worth a re-blog.  Too many times, folks just think nothing of renting, when they should be crossing t's & dotting i's.

Thanks.

Nov 21, 2008 01:59 PM
Liz Moras Migic
Chilliwack, BC
Chilliwack, British Columbia - Realtor

what a terrific list for renters and landlords - fantastic Jennifer!

Nov 21, 2008 03:59 PM
Sandy Fenton
Keller Williams NY Realty * Licensed Associate Broker - Mount Kisco, NY
ABR, ASP, CDPE, GRI -Westchester NY - Condos to Luxury Homes

Hi Jennifer - this is a great post! 

I've done my share of rentals and the issue that keeps poping in my head is - how can we as agents make sure the landlord/owner is current with his mortgage?  I suppose as landlord agents we can just ask and hope they tell us the truth but, as tenant agents, I wonder how much we'll be "held responsible" for if our tenant client has to move out of a foreclosed home.

I've heard stories of people paying rent and having the house foreclosed from under them.  I read something recently about making banks give tenants 60 days to move once they acquire a foreclosed home, but have no details.

 

Nov 22, 2008 06:42 AM
Jon Wnoroski
America's 1st Choice RH Realty Co., Inc. - Green, OH
Summit County Realtor

Good advice.  Some sellers who are unable to get there home sold in this market have turned to renting it out.  At least, when they are able to get a renter, they are able to cover the costs they would have (mortgage) with it sitting vacant.  I have had some do this to get out from under having two mortgage payments.  Their thinking tends to be that they will rent the home until they can get it back on the market and sold.  Of course, there are some tax issues related to this approach but most tend to feel they'll deal with that when the time comes.

Nov 22, 2008 06:48 AM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Karen - I think the need for rental will be greater as people lose their home.

Jennifer - I think sometimes renting is the only option as money is hopefully coming in to offset the expenses.  This is especially true if the seller has already relocated and the home is left vacant.

Yvette - Thank you, it is a compliment to have it reblogged as this will give it a wider readership.

Liz - Thank you.

Nov 22, 2008 09:59 AM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Sandy - I have seen those stories of tenants getting evicted because of the landlord's failure to pay the mortgage.  I really don't know how an agent could prevent this, the hope is that this will not happen often, another sign of how crazy everything has become.

Jon - That is a great point there is a tax issue.  The advice to a client would be for them to consult their accountant before taking this route.

Nov 22, 2008 10:07 AM