Finding Renters

I disagree with the entire premise. In my markets, the rental market is VERY tight and rents are increasing.

This makes sense to me as all the foreclosed homeowners have to live SOMEWHERE. Some are probably doubling up but the majority are renting.

Wmark. I appreciate your follow up on the information given.

I did not list that, specifically, in your area and your market you would need to be competitive. I did state that I have had conversations with others, not you, that have had the concern that I am addressing. I have asked the question as a way to drum up answers and ideas to think about.

We don't have the problem of competition, but one thing I like to do for our tenants is give them an annual state park sticker for Christmas. We have some beautiful parks here and I don't think that is something they buy for themselves. Everyone has been very appreciative. Also, I like to let them make a "wish list" (especially long-term tenants) of things they would like to see improved. It gives them a sense of ownership and any improvements we make also benefit us.

Rina I had not thought of that but I can see the upside to it as well.

Thanks, Anita.
It works well for us.

Rina

What I like to do and it is working well is, I offer to anyone renting a single family home from me that if they pay rent on time and they take very good care of the property for 12 months I give them the option to do a rent-to-own on the property. This way their mindset is that they are going to buy the property so they want to take good care of it, they do landscaping most of the time, pay rent on time, and fix all of the minor things themselves. It works well.

CBR, do you offer this on all your single-families or do you only plan to sell certain ones? Do you have some that you want to keep long-term, or doesn't it matter when you have a large number of them?
Just thinking ahead.

Thanks,
Rina

I have a question on this as well. Do you require up front option money on the conversion? Or do you just roll them over into a LO?

I like that idea....."annual state park sticker" puts the relationship on more of a personal level.

D

Hi cbr, when you do a lease purchase on one of your own homes, what do you usually ask for up front, like 10% or more? Cindy

Here is what I do. I give them the option to buy as a rent-to-own after 1 year of on time payments and no problems. After one year then they would have to give me an option payment of 3-5% (I count their deposit as part of that) and then their rent would adjust accordingly (up) and we negotiate a rent credit. I would set the price of the home fairly by getting a BPO. One house I bought was a mess and needed carpet and paint and a lot of fix up. So rather than me doing the rehab I just sold it on a rent-to-own handyman special. The couple came in and rehabed everything and now the house looks very nice. I marked up the house $12,000 over what I paid which still left them with $10,000 in equity. They got to own their first home on a rent to own and I got free rehab done. Everyone wins. If they decide not to exercise their option I keep the house and rent it out or sell it again. I hope they keep the house though, they are a really nice, hardworking couple.

Thank you cbr, that makes alot of since. Thanks for your input, i really appreciate it. Cindy