1st snowbird winter in AZ--Renting home furnished

[rldself]

Preparing for our first winter in AZ. Renting home fully furnished for 6 to 9 months. Anyone rented their home furnished? What did you store? Pictures left on walls? Knick Knacks left on shelves? Working hard preparing and purging lots of stuff. Any advice welcome.

[lizzie]

It is always interesting to see how the nay-sayers love to get into bursting somebody's bubble. This is an RV forum. Look for legal advice, information about rental insurance and liability elsewhere. If all of this stuff were true, nobody would ever rent anything, anywhere. Since 1962 we have had rental property of all kinds; apartments, townhouses, single-family dwellings, beach cottages, and seasonals. We consult our CPA, our insurance agent, our attorney, and we are up-to-date on the tax codes that apply to us. We deal with the "emotional" aspects ourselves. This is not rocket science. The OP sounds like a thoughtful person who has sense enough to work through whether or not he wants to rent his home.lizzie

[DownTheAvenue]

Three issues not discussed. One is the emotional aspect. Do you want to come HOME to where someone has been sleeping and you know what else in your own bed in your own bedroom? Eating out of your dishes and spilling food and drinks on your personal chair? Finding your favorite cooking utensil missing? You have essentially transformed your personal space into a part time residence you share with others. Do you really want that?

Another issue, speaking as an attorney, is the potential for gigantic legal problems. Check with your insurer. Your home insurance will have to change, and it may not include personal property (household furnishings) when you convert to rental property. You will need at least a 2 million dollar umbrella policy to protect you from liabilities that you now do not have. Another point is if the renters declare bankruptcy while renting from you, you may not be able to evict them and they may not have to pay rent. The process could take two years before you could have YOUR house back. Do you want that risk?

The third issue is taxes. By renting out your primary residence, you have instituted significant tax consequences including paying capital gains tax on an asset that was exempt from that tax. Any gains from the rental (the rental income minus actual expenses) is taxed, and could increase the tax you also now pay on other income.

My recommendation is to buy a rental house if you want to be a landlord, but keep your primary residence out of a rental arrangement. The risks and tax consequences do not make it as lucrative as it seems on the surface.

[drsteve]

fj12ryder wrote:
^^^^^^^I can't imagine a call to "to their boss or corporate somebody" is going to give you any kind of access to their financial records of any kind. Seems very unlikely.

Yup. All you'll get from most employers is confirmation that the person works/worked there, and hasn't killed anyone or burned the building down. Privacy laws are a thing.

Most employers, current or former, aren't going to stick their necks out to give a prospective landlord a heads up about ANY possible negatives, because it is of no benefit to them to do so. Giving someone a bad reference can lead to unwanted trouble for the giver.

[Naio]

fj12ryder wrote:
^^^^^^^I can't imagine a call to "to their boss or corporate somebody" is going to give you any kind of access to their financial records of any kind. Seems very unlikely.

No, it's perfectly normal. I've been in the business all my life. Only once that I can remember has the employer even asked their employee to give (verbal) permission first.

Employers do this all the time for work references. Rentals are just the same. You call and say, 'I am a landlord and X has applied to rent a place from me. I'm calling to verify employment.' Then you can ask if they work full or part time, how long they have been there, how much they make, if the employer plans to keep them on, etc. Depending on the job you can ask if they are tidy,responsible, etc.

[fj12ryder]

^^^^^^^I can't imagine a call to "to their boss or corporate somebody" is going to give you any kind of access to their financial records of any kind. Seems very unlikely.

[Grit_dog]

rockhillmanor wrote:
I'd think real long and hard before you rent your house to someone you don't know especially if you are not in the area to watch over it.

I'm an ex-landlord and I have seen the horrific damage that even the best dressed, wealthy renters can do to a home they are renting. 😞

While the damage thing from seemingly rich people is possible and true, I've noticed a pattern. Only tenants who have messed stuff up were families with little kids. Also my experience may be jaded because 2 of the bad tenants were also deadbeat tenants during the recession, they didn't give a f..... And were just playing the system to keep a roof over their heads and we got played!
The thing you need to sort out, is if you're doing a seasonal rental in a college town, it will need to be available based on the school schedule. 6 months won't cut it, and since you'll need to rent it out for 9 months basically, why not dump it and buy a house in AZ where you will be living for 9 months? Also, your tax deductions for, if you qualify for those, will only be 75% (9mo) of whatever you're deducting. Just things to think about based on your situation.
Another piece of advice, I don't mess around with credit checks. You can assume whoever is renting has shatty credit or they'd buy a house and if they have good credit it just a bonus. Do a quick public records search to make sure your not renting to an axe murderer or meth head and REQUIrE proof of income. If I can't see the previous year's 1040 and current pay stubs with a call to their boss or corporate somebody they don't get the keys. Period.
Maybe learned from our deadbeat tenant phase...

[rockhillmanor]

I'd think real long and hard before you rent your house to someone you don't know especially if you are not in the area to watch over it.

I'm an ex-landlord and I have seen the horrific damage that even the best dressed, wealthy renters can do to a home they are renting. 😞

[rldself]

Thanks everyone for your input! Really appreciate it!

[Naio]

I have done this and plan to again. Of course you will store whatever is precious to you.

As for what to keep in the house, different tenants want different things. Just ask them. And tell prospects, when you show the house, that what you leave is negotiable. Some people want sheets, towels, cookware, artwork, etc. Some have their own and want space for them.

[samsontdog]

I would never rent our private Home but I do rent out my Park Models in AZ. I only rent for the Snowbird Season { 6 months} to Seniors , no smoking and no animals. I leave nic naks, pictures etc out or on walls. I have been a Landlord for 15 yrs with very few problems to speak of

[K_Charles]

We rent out the house next door and I don't think I would rent our house out unless we knew the people very well. We have had good and not so good tenants. Our daughter started renting it a few years ago so she watches this place when we are away

[Bob_Olallawa]

Wow, if it were the home in AZ you were renting that would be one thing. Since it is your primary home I would think anything you want to stay private should be locked down, either at the home or in storage. I wouldn't do it with the primary home but would with a winter home...

[rldself]

Lizzie, that is exactly what I am finding about prioritizing all of our stuff. Ever bag or box removed makes me feel freer and ready for our adventure. The kids are delighted because it will be less stuff to sort for them when we pass on. If we love this new RV life we may completely downsize and sell the house. If we don't we come home, unpack and have less stuff! Do you leave pictures on the wall? This is an academic town and our applicants our professionals with the university. NOT students.

[lizzie]

We rent our NC home on a seasonal basis when we are not using it. Our nearest neighbor manages it for us. It is completely furnished and in four years we have not had any problems: We have a downstairs shop, a bathroom closet, and a garage cabinet that locks. We went through the house and removed everything that we felt we would really regret losing/breaking, etc, and locked it up in these places. We also purchased a fireproof file cabinet for the shop to store private papers. (Think about what you would grab if your house was on fire.)Getting the house ready to rent was one of the best experiences of our lives. It helped us to prioritize, downsize, and move toward living simpler. lizzie

[Lwiddis]

I would not rent my home. To each his/her own.