The rent will be determined by what the market is willing to pay. Tenants don't care what your expenses are.

Seems to me finding out the market rent will be an important factor in deciding if he wants to 1) keep the house as a rental 2) sell it at a liquidation price, or 3) let the bank have it back (strategic default).

I'm opposed to 3) for a variety of reasons, but it happens all the time.

I'm sure there is an honest and competent property manager in the area who can tell you what rent and expenses to expect. Finding that person would be my highest priority if I were the OP.

If a liquidation price results in a short sale, you are going to want to find out from your lender if they can/will come after you. Depends on your bank and the terms of your mortgage. If a short sale, the bank is going to have to approve it.

Unfortunately, many people have been hosed by the downturn in the RE market and face these tough decisions. My area has lost about 55% of value since the peak. Anybody who bought near the peak or took out big home equity loans or 2nd mortgages is so far upside down it's not even funny.

 

I'll just add that the rental market seems on a high right now, probably due to the downturn in property values that have left people reluctant to buy - even though interest rates on mortgage loans are at an incredible low. So, I would not expect to see your home staying vacant if the rent you ask for is reasonable.

As far as finding a good property manager, they exist. If you know anybody in Real Estate, they are a often good source for a referral. If you insure with USAA, you MIGHT get some information from them. They used to have USAA certified realtors in the various communities, so they MAY have something like this in rental agents.

DO NOT walk away from your mortgage!

- Jack

 

While market conditions can vary dramatically by location, here is a recent article showing a strong market for rental homes in Colorado. Looks like low vacancy and rising rents in counties around Denver.

http://insiderealestatenews.com/2011...ancy-rate-2-6/

 

I have both been my own property manager and used a property management company for my units. It is by far easier and less stressful to get a good property management firm unless you are retired and are doing it as a full time income producer.

Just as a note, I've been out of the landlord business for 10 years now and couldn't be happier.

 

I moved 2 hours away from my home for a new job.

I rented it out to a family immediately, that just moved out today, after 15 months of living there.
Luckily I had family that was 2 blocks away that took care of it for me, the tenants didn't even have my number.

I wouldn't wish it on anyone that is not immediately near their property. Besides the feeling that I was causing a burden on my family, they didn't mind, It was also stressful for me. Always wondering if something was going to go wrong, if there was going to be a storm there, alot of uncertainties.

I now have it up for sale, hoping that i don't resort to renting it again.

Much respect for those that are able to handle it.

 

It is a business venture of sorts and has its risks.

 

I can't offer advice as someone renting out property, but I can say from being someone that still currently rents, it's good to have a decent property manager/firm to be able to contact when something breaks/goes wrong and you, the owner, are unavailable or busy.

Make sure to get an idea of who the tenants are before renting out. I wouldn't rule out college kids entirely (when I was in college, many many houses were non-student only even though they were less than a 5 minute drive from campus making it a huge pain in the *** for clean, well kept students like myself to rent a place) but if you spend 10 minutes talking to potential tenants, you can get a decent idea of the type of people they are.

 

Hey FX41 do you have a home in EP already? I have a house that will be available for rent by the end of the month. If interested let me know. Take care and good luck with the other home.

 

I do, but do know of some guys that are still looking, so if you want to, PM me with the info, and I can pass it along.

 

Never, the people who did that are the ones that are going to cause me to make little to nothing on a house that I have spent the last 1.5 years upgrading and improving, when we even bought the house with equity.

 

Castle Rock.

 

Nice area! Close to Denver and, close to the mountains!

- Jack

 

I'd love to get back.