questions for people who rent their property

AC2717 · 09-11-2007, 12:38 PM

Quote:

Originally Posted by Paugus Bay Resident

There are some tax considerations. You may want to check out this IRS publication, http://www.irs.gov/taxtopics/tc415.html

When you purchase to get a better rate buy as a second home, because if you have intentions of renting right off the bat they will know and you will be forced into a income property mortgage.

Then after decide you want to rent it. Now if you declare the rentals and hit a certain amount on it you have to then declare it a rental property and then you deduct expenses but also declare your income on it. Also when you go to sell it you will have to pay more taxes on it. I have looked into it. Now if you keep it as a second home and "allow" others to use it lets say, then you can keep it as a second home and pay less taxes at time of sale and for how long you own it each year when you do your taxes. You have to weigh both situations and make your own decision here.

ossipeeboater · 09-17-2007, 02:51 PM

Quote:

Originally Posted by AC2717

When you purchase to get a better rate buy as a second home, because if you have intentions of renting right off the bat they will know and you will be forced into a income property mortgage.

.

As long as your intentions are to occcupy it as your second home for most of the year you can rent it a portion of the year without an issue with most lenders. Renting for 8-10 weeks out of the year would be fine. If you were financing it as a second home you could not use the potential income from the rentals to help qualify you for the mortgage.

I've gone back and forth with my wife on renting our place out, looks like we will take advantage of the 14 days the irs let's you rent without having to pay taxes and put some friends in it for 2 weeks next summer to help pay the tax bill.

Weirs guy · 09-18-2007, 12:11 PM

I missed AC2717 question about the key. Right now our neighbors leave a spare key hanging under the porch year round and tell the renters and property maint. company where it is. We've not once had any issues at all (maybe thanks to me watching the place year round, for free, hey, when do I get paid!!!) with duplicates or unwanted guests.

I'd guess that roughly half the people who rent sign up for "the same week next year" before they go, and the going rate (30 second walk to the boardwalk) is $1,200/week.

GrandmaBig6 · 09-18-2007, 02:03 PM

We don't own a house in NH but hope to one day.

We've rented houses for 18 years. A few houses we rented a few years in a row until they were sold, or the owner decided to live year round.

When we left houses they looked better than when we got there. We cleaned everything, vacuumed, dusted, etc. even tho a cleaning person was coming in to do the same thing right after we left.

The key was either under the gas tank of the grill, under a milk can on a front porch, hanging on a hook under the 3rd step. Then there were other times we would rent thru a realtor and just picked up the key from them.

We have brought our dogs (one dog for 14 years and our new puppy this year) and we always got back our security deposits. We have respected other peoples homes because we want to get the house for the next year (except the one we rented this year, that's a whole other story [no dresser in one of the bedrooms, no vacuum, a staircase so steep we had a tough time climbing it and I could go on] needless to say I've got a better house already set up for next year.

Anyway, this is just from a renters pov.

AC2717 · 09-18-2007, 02:21 PM

It has always been a concern for us,
WE used to rent homes or cottages as well and do the same, and then it always comes down to the well you never know.
then I was thinking, they make a relatively in-expensive key pad lock of which you use a code to get into the place. and then I said that is easier for me as well, because then I do not have to worry about making sure the hide a key is outside and then also in case I forget my key as well or loose it int he lake when I go out to the boat. That way as well I can just give a code and then change it if i wanted.

I agree that most that you meet up in the area are nice people and they always want to get in for the next season as well so they are respectful. I guess it runs into like i was saying well you never know. But I am going to go for it next year. It would definitely help with boat storage and mortgage if so needed.

Thank you for the input and please keep it coming on the tips and experiences from renters and from those doing the renting. any and all tips are welcomed. Anything to learn the do's and dont's.

Coolbreeze · 09-18-2007, 02:48 PM

If you don't need the money, don't rent. People trash your place, call you with every little problem and generally don't care about your propoerty. This comes after thirty years of experience.

TomC · 09-18-2007, 03:19 PM

Quote:

Originally Posted by Coolbreeze

If you don't need the money, don't rent. People trash your place, call you with every little problem and generally don't care about your propoerty. This comes after thirty years of experience.

I rent one of my places exclusively (ie I don't personally use it)

I have never had anyone "trash" the house, and i virtually never get calls about problems. The one time I did, the floating dock had broken loose and the renter rightly called to let me know after they did emergency makeshift repairs. Indeed, I think the people do care about the property and treat it as if it were their own..

I maintain the place impeccably. Everything works and my wife keeps the decor inviting. If you are going to hit people with an expensive weekly rental fee (it can amount to $1000's/week for waterfront) its important to give the customer their money's worth.

This also comes after years of experience.

GrandmaBig6 · 09-18-2007, 04:55 PM

Coolbreeze:

Too bad about the renters at your property although not all renters are lumped into the group you mentioned. As I mentioned before I do take extra time in cleaning and effort in keeping other peoples belongs safe.

As for calling all the time, I would hope that property owners would like to know what happens to their house while they are not around and others are staying there. I want my security deposit back and I certainly would not jeopardize that.

Hopefully some day you will give us renters a chance.

Mary

09-18-2007, 12:11 PM	#3
Weirs guy Senior Member Join Date: Feb 2006 Location: Weirs Beach, NH Posts: 1,067 Thanks: 0 Thanked 1 Time in 1 Post	I missed AC2717 question about the key. Right now our neighbors leave a spare key hanging under the porch year round and tell the renters and property maint. company where it is. We've not once had any issues at all (maybe thanks to me watching the place year round, for free, hey, when do I get paid!!!) with duplicates or unwanted guests. I'd guess that roughly half the people who rent sign up for "the same week next year" before they go, and the going rate (30 second walk to the boardwalk) is $1,200/week. __________________ Is it bikeweek yet? Now?

09-18-2007, 02:03 PM	#4
GrandmaBig6 Senior Member Join Date: May 2004 Location: Long Island, New York Posts: 103 Thanks: 10 Thanked 2 Times in 2 Posts	A different view We don't own a house in NH but hope to one day. We've rented houses for 18 years. A few houses we rented a few years in a row until they were sold, or the owner decided to live year round. When we left houses they looked better than when we got there. We cleaned everything, vacuumed, dusted, etc. even tho a cleaning person was coming in to do the same thing right after we left. The key was either under the gas tank of the grill, under a milk can on a front porch, hanging on a hook under the 3rd step. Then there were other times we would rent thru a realtor and just picked up the key from them. We have brought our dogs (one dog for 14 years and our new puppy this year) and we always got back our security deposits. We have respected other peoples homes because we want to get the house for the next year (except the one we rented this year, that's a whole other story [no dresser in one of the bedrooms, no vacuum, a staircase so steep we had a tough time climbing it and I could go on] needless to say I've got a better house already set up for next year. Anyway, this is just from a renters pov.

09-18-2007, 02:21 PM	#5
AC2717 Senior Member Join Date: Apr 2007 Location: Maynard, MA & Paugus Bay Posts: 2,585 Thanks: 755 Thanked 356 Times in 268 Posts	Thank you It has always been a concern for us, WE used to rent homes or cottages as well and do the same, and then it always comes down to the well you never know. then I was thinking, they make a relatively in-expensive key pad lock of which you use a code to get into the place. and then I said that is easier for me as well, because then I do not have to worry about making sure the hide a key is outside and then also in case I forget my key as well or loose it int he lake when I go out to the boat. That way as well I can just give a code and then change it if i wanted. I agree that most that you meet up in the area are nice people and they always want to get in for the next season as well so they are respectful. I guess it runs into like i was saying well you never know. But I am going to go for it next year. It would definitely help with boat storage and mortgage if so needed. Thank you for the input and please keep it coming on the tips and experiences from renters and from those doing the renting. any and all tips are welcomed. Anything to learn the do's and dont's.

09-18-2007, 04:55 PM	#8
GrandmaBig6 Senior Member Join Date: May 2004 Location: Long Island, New York Posts: 103 Thanks: 10 Thanked 2 Times in 2 Posts	Too Bad Coolbreeze: Too bad about the renters at your property although not all renters are lumped into the group you mentioned. As I mentioned before I do take extra time in cleaning and effort in keeping other peoples belongs safe. As for calling all the time, I would hope that property owners would like to know what happens to their house while they are not around and others are staying there. I want my security deposit back and I certainly would not jeopardize that. Hopefully some day you will give us renters a chance. Mary

09-18-2007, 02:48 PM	#6
Coolbreeze Senior Member Join Date: Apr 2006 Posts: 332 Thanks: 0 Thanked 51 Times in 26 Posts	If you don't need the money, don't rent. People trash your place, call you with every little problem and generally don't care about your propoerty. This comes after thirty years of experience.