Yes...BUT....What IF.......

By
Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

We have been working with a client who has now decided that their snowbird home will become their only home and now the question becomes what to do with the one in Wisconsin. They have done a snowbirdbeautiful kitchen remodel...have a great attached sunroom overlooking their pool with a deck...a nicely finished lower level...great location and it had been home for many years. They wanted to discuss all their options.

   What IF...they rented out the Wisconsin home what did that look like ?  Having been landlords and sold single family homes that were taken care of by property managers, we could counsel them from experience...ours and other clients.

Yes, the home would provide additional income and while in southeastern Wisconsin, there are few single family homes for rent, we were able to give them an approximate rental income range. Typically, leases are for not less than one year and no...renting the home furnished is not a plus because it means storage of the tenant's furnishings and that is not a popular long term option in this market.

   There is landscaping that must be maintained and a pool besides. Yes, grass cuttingthat can be written in the lease and equipment supplied...cross your fingers that is done. OR as the new landlords, you can hire landscape and pool maintenance and decide how snow is handled...a plowing service or more likely, tenant responsibility.

    We suggested that they speak to their insurance person to get a well rounded estimate of all their costs. Generally, the Landlord continues to pay the sewer/water bill and of course the property taxes so those expenses along with a property management fee would have to be subtracted from the rental income to get to the bottom line.

     The pool is an absentee landlord liability..the "What If's" in terms of accidents have  to play in your head. The landscaping that has been lovingly maintained...may not be...Tenants rarely take care of a house they way owners have maintained a home.

     The homes in the area are getting record sale prices...when a tenant vacates a property...realistically...there is painting, some sort of repair, cleaning etc. that likely will have to be done if the property is to be put for sale or renton the market after they vacate. The other option is to continue to rent it out....same clean and fix applies and the search initiated by the property management person/company for another tenant. That may or may mean gaps in rental income while taxes and maintenance costs continue.

  If you or anyone you know is considering the options or renting or selling...consider ALL the "What if's" and expenses before making a decision

     This has been an informational post brought to you by Sally K. & David L. Hanson, Broker Associates with EXP Realty honored to be of service for all things real estate in southeastern Wisconsin.

Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Rainmaker
2,852,163
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Sally.

Decisions, decisions.  The one thing that stood out to me was the pool.  Big liability, in my opinion

Jun 03, 2019 03:22 AM #1
Rainmaker
1,868,878
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Sally and David - there are so many "what ifs" but going through all of them with this couple will help them make an informed decision.

Jun 03, 2019 03:45 AM #2
Rainmaker
3,140,089
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

Yes, those are "What If's" that must be considered. Living out of state when you have rental properties sometimes isn't the best idea. Like all of a sudden pipes break and oh no...We know this from experience!

Jun 03, 2019 04:18 AM #3
Rainmaker
3,541,762
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning again Sally. I can't imagine keeping a former primary home as a rental in another state.

Jun 03, 2019 05:22 AM #4
Rainmaker
1,518,392
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Ashburn, VA
Alexandria Virginia Homes For Sale

Sally and David, there are so many what if's to consider. The pool would be the only sign I needed to decide to sell. More liability than I'd want with a tenant and the upkeep. I'll be curious to hear what your clients decide.

Jun 03, 2019 06:25 AM #5
Rainmaker
2,477,541
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Is their snowbird home in Arizona?  I know lots of Packer backers that call the East Valley home for the winter.

Jun 03, 2019 07:08 AM #6
Rainmaker
3,210,769
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

YES Brian England it is but they bought it before we knew them or you would have had a referral ! If any of the Packer Backer buddies have a house here...some still keep condos in both places and decide otherwise...always happy to help !

Jun 03, 2019 07:29 AM #7
Rainmaker
3,268,499
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Sally and David - and with each situation, a new question arises and a conversation starts.  "What if" is another wonderful example that explores the many possibilities available to us.  

Jun 03, 2019 10:54 AM #8
Rainmaker
1,521,258
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

It's a good idea to look at all the financial what if's - and then consider the hassle factor. Dealing with problems long-distance would not be fun. Then the emotional side - how tough would it be to learn that tenants had trashed the house and yard you loved?

Jun 03, 2019 12:34 PM #9
Rainmaker
3,210,769
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Exactly 
Marte Cliff ...though I suspect it is the "emotional side" that is keeping them from letting go of the house they have lovingly maintained for years....and called home.

Jun 03, 2019 12:37 PM #10
Ambassador
3,802,790
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

HI Sally and David- it is wise for your clients to enlist your knowledge. When we first moved to Florida years ago, our landlord had a pool. Rather than rely on us (his tenants) to maintain the pool, he built in the pool service into our rent. 

Jun 03, 2019 06:13 PM #11
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
For All Things Wisconsin Real Estate...Call the Hansons
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