Questions: Renting a house

[Radii]

There is a house nearby for rent. Other than the most basic generalities(size/rooms/square footage, etc), I don't know anything at all yet.

Assuming we see and like the house and decide we could afford it(all big assumptions, but I'm getting to the point, don'tworry)... anyway, assuming all that, what concerns do I need to have in a legal sense when renting a house from a private owner vs renting an apartment. Any big problem areas or key questions we need to focus on? I understnad maintanence issues are a concern(who is responsible for what kind of maintanence, etc), but I want to see if any of ya'll have any experience that might let me go into this with a little more knowledge if we deicde to look seriously.

Thanks

[cartman]

In my experience, if you are looking to rent a house, it is almost always better to use the money to buy a house.

Of course, there are always variables and differences in situations, but there are plenty of zero down payment options (what I used to get my house this year) and similar plans.

In most cases, if you can afford to rent a house, then you can afford to buy a similar house, and even come out ahead at the end of year due to the tax benefits.

But as to the legal questions surrounding renting, have a legal type look over the document before you sign it. If there is anything you are concerned about that isn't spelled out in the rental agreement, have it added.

[cartman]

dola,

unlike apartment rentals, where there is pretty much a standard template for the rental agreement, most house rental agreements are very different, for the reasons you mention.

Yard Work, simple maintenance, and those kinds of things which are almost always covered by the apartment agency may or may not be provided by the property owner.

[Radii]

it is almost always better to use the money to buy a house.

If we can afford to buy this house, then we will be running away within 5 minutes of seeing it :D

Of course, I haven't seen it yet and that is very possible.

[Franklinnoble]

In my experience, if you are looking to rent a house, it is almost always better to use the money to buy a house.

What he said.

It's a little bit more of a pain in the ass in the short run, but in the long run, you'll be much better off.

[Dutch]

I think the rule of thumb is that if you plan on living in the house for 3 or more years to buy it, especially with mortgage rates sooooo low right now.

[Radii]

We have already looked at buying. I qualify for a very large loan, but the mortgage payments to pay for houses in the area we'd like right now are over $800/mo more than we could afford.

That either means that the person that owns the house that would be renting it already owns it outright or put a bunch down(or bought awhile ago before housing prices shot up so much around here) and is still making money charging a bit less, OR the house sucks and we will have zero interest.

Buying is not an option at all right now. All extra money(see my poker dyansty ;) ) goes towards paying down debt and down payment savings, but in the meantime, if we can get into a house as renters at something we can afford we would love to. If not, this apartment is very cramped but will do until we save more.


Anyway, Oliegirl and I are going to go check it out tomorrow, so we'll see then.

[Dutch]

I don't know but the owner will have insurance to cover the home in case of fire or natural disaster. You will have renter's insurance to cover loss of personal property.

Ask if he has a home warranty. That will cover things like the heater/air conditioner/garbage disposal/dish washer and other things like that (I'd have to re-read mine to see what all is included in mine).

But check the contract, it should have it all stated in there just like an apartment renter's agreement would.

[Radii]

Thanks. Since posting this, I found a very helpful site listing Georgia law and a big FAQ for owners and tenants, I feel a lot more comfortable about talking to these guys now if the house is worth discussion.

[GrantDawg]

If they are renting a house in Atlanta under $800, it is going to be a dump. Sorry, but this area is cheaper than your area and I coudn't find a house to rent at that price 3 years ago.

[Radii]

No, it's renting for just over $1000, and yeah, for that there is a solid chance it's a dump.

The area we'd ideally like most, non interest only loans would end up being $1800/mo, that's where the $800/mo number I threw out was... the difference between this house and what I would be paying for a loan at current housing prices. Though to be fair those figures aren't for the exact same neighborhood. The one we like the most is a few miles away.


edit: clarity

[GrantDawg]

No, it's renting for just over $1000, and yeah, for that there is a solid chance it's a dump.

The area we'd ideally like most, non interest only loans would end up being $1800/mo, that's where the $800/mo number I threw out was... the difference between this house and what I would be paying for a loan at current housing prices. Though to be fair those figures aren't for the exact same neighborhood. The one we like the most is a few miles away.


edit: clarity
Sorry, missed that. Of course, my advice is move out a little ways. You can buy much more house for the cash.

[Radii]

well, oliegirl and i were both suprised and impressed, she knew the neighborhood already so she knew what to expect, I didn't. Not a bad neighborhood at all, not shady, lots of kids nearby for our 7 year old to meet. The house we looked at is in the low end of the neighborhood, houses on our side are running $180K or so while there are some 4 bedroom houses in the same subdivision that look to run 220-230K.

House was built in 1996, is a nice 2 story house, 2200 sq feet, 2 car garage, vaulted ceiling in the foyer type area/family room, 2 bedrooms and a really neat open area w/ some shelves and room for our computers and such. Much bigger kitchen than we have now(major plus for Oliegirl, and thus for me as well ;) ). Right now we have an extra bedroom to use for a playroom for the 7 y/o, and when we decide to go for an expansion there's a room all ready for that too(but not yet, so don't ask).

Anyway, Everything looks great, all major things are covered under housing warranty and if there are ever any problems w/ anything not caused directly by us the owner will be responsible in a normal landlord/tenant setting. the owner works for a mortgage company and is going to run my credit and write up a lease. I've gone through this site: http://www.dca.state.ga.us/housing/landlord/contents.html very closely and feel comfortable about things.

We'll be getting a year lease at $1000/mo, a bit more than our current rent but not so much that we still can't work to agressively pay down debt so that we don't have to move quite so far north when we do want a house(right now b/c of the school system we have the boy in moving a long ways north is simply not ok. Maybe in a couple of years we can trek out of Gwinnett County if we need to, but not now).


Looks like this is a potentially wonderful situation for us(I only say potentially b/c it's not an official, done deal yet,still a few more details to go over anda lease to peruse and sign, etc).

Apartment living isn't terrible, but this apartment is just getting waaay too cramped and our son can't go outside and just go nuts and run around, I feel terrible b/c of that, I grew up with a big back yard and could go outside anytime I wanted and play football or basketball or whatever, and I *really* want my kids to have that luxury too, and this is a big step in the right direction.

[Dutch]

Sounds like a great deal to me!

[Eaglesfan27]

Sounds like it is good for you (and your family.) I hope it works out for you.

[Radii]

2 bedrooms and a really neat open area w/ some shelves and room for our computers and such.


that's 2 bedrooms upstairs, our master is downstairs, so 3 bedroom 2 1/2 bath. That wasn't clear at all :) Right now we have a 1200 sq ft 2 bedroom apartment.

[Tom E]

House was built in 1996, is a nice 2 story house, 2200 sq feet, 2 car garage, vaulted ceiling in the foyer type area/family room, 2 bedrooms and a really neat open area w/ some shelves and room for our computers and such. Much bigger kitchen than we have now(major plus for Oliegirl, and thus for me as well ;) ). Right now we have an extra bedroom to use for a playroom for the 7 y/o, and when we decide to go for an expansion there's a room all ready for that too(but not yet, so don't ask)

I just nearly shit myself, after reading this...

I live in Livermore CA, the population when I moved here in 1989 was 29,000. Today the population around 80,000. Livermore, is Bay Area suburb 45 minutes East of Oakland/SF.

I own a 1250 sq foot 3 bedroom 2 bath house, built in I think 1965. If I where to put my house on the market today, the bidding would start between 375,000 and 400,000$

The house market is so crazy right now, people are bidding 25 to 50,000$ over the houses value to ensure that the get the house...

[cartman]

I just nearly shit myself, after reading this...

I live in Livermore CA, the population when I moved here in 1989 was 29,000. Today the population around 80,000. Livermore, is Bay Area suburb 45 minutes East of Oakland/SF.

I own a 1250 sq foot 3 bedroom 2 bath house, built in I think 1965. If I where to put my house on the market today, the bidding would start between 375,000 and 400,000$

The house market is so crazy right now, people are bidding 25 to 50,000$ over the houses value to ensure that the get the house...

I used to live down 580 from you in Dublin. Housing prices were the main reason I decided to move back to Texas after my stint in Europe.

I paid less for my 3 year old, custom built, 3000 sq ft house on 2 acres here outside of Austin, than I almost paid for a 40 year old 1250 sq. ft. townhome in San Jose.

As for the originator of the thread, that sounds like a good deal Radii. Hope it ends up working out for y'all!

[mgadfly]

I'm trying to get/considering taking a job in a little town in Idaho. I hit Realtor.com to check out the housing market. There was a 3200 square foot home on 42 acres for $50,000. I thought it had to be some mistake but the most expensive house listed was a 5700 square foot home on 85 acres for $199,000.

We were going to buy, but the job I'm looking at is only a one or two year term, and we figured we'd never be able to sell the place if we moved. I called some houses listed as for-rent and they are asking $200 per month.

The extremes on housing costs right now is pretty amazing.

[Tom E]

When where you last in Dublin, Guy Houston turned that city into a the areas shopping/entertainment Mecca of the Tri-Valley. In 5 years Dublin expanded by 45%

Of course the down side is, that the beautiful rolling hills I grew up seeing. Are now nothing but houses

I used to live down 580 from you in Dublin. Housing prices were the main reason I decided to move back to Texas after my stint in Europe.

I paid less for my 3 year old, custom built, 3000 sq ft house on 2 acres here outside of Austin, than I almost paid for a 40 year old 1250 sq. ft. townhome in San Jose.

As for the originator of the thread, that sounds like a good deal Radii. Hope it ends up working out for y'all!