What to do with my house while I am away on biz

[RT66Rider]

My wife and I are moving to Europe for a few years and I need some advice on what to do with our house.

We will be there for a minimun of 2 years, and a maximum of 5, and we really don't want to sell it.

We owe nothing on it but really prefer not to keep it vacant for that long.

 

In the Oklahoma City area there is not much in the way of Property Management Companies.

 

And ideas/suggestions ?

[Gregori]

The three obvious choices are to: (1) Sell it. (2) Winterize it and pay someone to maintain it. (Things like mowing the lawn, making sure it doesn't get damaged/vandalized, etc...) or (3) Rent it out.

 

You've said you don't want to sell it, so take that off the table.

 

'Storing' and maintaining the property can be doable - find a property preservation company who does it for banks (ie- foreclosed properties) and you may be able to find someone who will check on it once or twice a month, and keep it from looking abandoned. Shouldn't cost a fortune - maybe $100-150 a month. Add your property taxes, insurance (very high for an unoccupied home), and probably something nominal for electricity. and maybe a monitored alarm. So, maybe $300-400 a month?

 

And then there's renting it. Obviously, finding a tenant who's going to treat it like you would is going to be close to impossible. However - as long as you have someone in there paying the rent, you should have some actual income from the property every month, instead of an expense. One possible alternative to a standard residential lease is rent it out on a rotating short-term basis - something like airbnb (LINK: http://www.airbnb.com/ ) might be a great alternative that you hadn't considered. You'd need to find someone local (and reliable) to come in and clean up after each guest. The cleaning cost is built into your airbnb fee, and it could be a neat way to make a little cash, without the issues of a long term tenant who may not wish to move out when you come home.

Obviously, you'll still have to maintain the property (to a higher degree than you would if it was in 'storage') but you'll most likely be recouping that (and some) by renting it out. Especially if it's a unique home or located in an interesting area.

 

Another renting option is to find a relocation company who'd want to rent it to folks moving into the area before they find their own place.

 

Should you ultimately decide to sell it - I'd be happy put you in touch with a top Realtor in your area. (I am able to research their track record, references, and training before you ever pick up the phone to call them.)

[DaveTheAffable]

Consider renting or donating the use to a university or foundation?

 

Some friends of ours allowed a Christian University to "rent" their home for a few hundred dollars a month. Way under market value. The university in turn, maintained it, cared for it, and used it for intern professors, visiting scholars, etc. It was well cared for.

 

I'm NOT suggesting that "Christians" would care for it better then others (before anyone beats me up). It's just the example I had to share.

 

Consider -

- Local childrens hospital?

- Other types of educational institutions?

- Philanthropic organizations?

- A veterans suppoprt group?

 

It could be a win-win. Helping someone, while the responsibility lies with the organization, and not this months renter.

[bmw_rider]

Most Realtors will also take on Property Management arrangements.

[Albert]

Be very careful concerning insurance. I was speaking to several local friends recently who had elderly parents who moved into temporary housing or with relatives during rehabilitation, thus leaving their homes empty. In one case their home owners insurance was promptly dropped when the company found out. In another they raised their premiums to astronomical levels.

[Gregori]

Most Realtors will also take on Property Management arrangements.

 

Not so! Many realtors WILL take on a listing to help find tenants - but very few of them will actually do the hands-on year round management duties. (Some may claim to, but I have yet to see one who actually does so.) FWIW - only about half of the 70+ agents in our four offices will handle rental listings, and NONE of them do property management. Rentals are a niche service category, and the skills and knowledge required (to do it well) are vastly different from doing residential sales. We personally only take rental listings from clients that we've done other business with, as a way to provide continuity and customer care.

 

If done correctly, property management is FAR more than simply finding tenants. A REAL property manager will make sure the property is kept up (several visits a year to check the property) as well as arranging upkeep. (Including services like grounds care, contractors, repair people, cleaning and preparation for new tenants, etc.)

 

A property manager will take 10-15% of the rent every month, and usually also charge for finding a tenant. (in addition to billing you for the advertising.) But it means that you as an owner are completely hands-off. The only time the management company will call you is when there are major issues. They take care of everything and you just get a check in the mail. You may never even meet the tenants if you don't care to.

 

 

[Mike]

Most Realtors will also take on Property Management arrangements.

 

Not so! Many realtors WILL take on a listing to help find tenants - but very few of them will actually do the hands-on year round management duties. (Some may claim to, but I have yet to see one who actually does so.) FWIW - only about half of the 70+ agents in our four offices will handle rental listings, and NONE of them do property management. Rentals are a niche service category, and the skills and knowledge required (to do it well) are vastly different from doing residential sales. We personally only take rental listings from clients that we've done other business with, as a way to provide continuity and customer care.

 

If done correctly, property management is FAR more than simply finding tenants. A REAL property manager will make sure the property is kept up (several visits a year to check the property) as well as arranging upkeep. (Including services like grounds care, contractors, repair people, cleaning and preparation for new tenants, etc.)

 

A property manager will take 10-15% of the rent every month, and usually also charge for finding a tenant. (in addition to billing you for the advertising.) But it means that you as an owner are completely hands-off. The only time the management company will call you is when there are major issues. They take care of everything and you just get a check in the mail. You may never even meet the tenants if you don't care to.

 

 

This may be somewhat regional. bmw_rider and I are in the same area and there are at least a few Realtors around our area who also do property management work. I suspect that this has become a little more prevalent around here because of the decline over the past few years in the R.E. market.

 

However you find them, I think it's probably the best approach. If I were in the OP's shoes, I'd rather have some income and the knowledge that someone was in the home on a regular basis, as opposed to it being unoccupied.

[RT66Rider]

Thanks very much for all of the good advice and suggestions.

I had not thought of renting the house out to a university/organization, but I like the idea.

 

Cheers

[Glenn Reed]

However you find them, I think it's probably the best approach. If I were in the OP's shoes, I'd rather have some income and the knowledge that someone was in the home on a regular basis, as opposed to it being unoccupied.

 

What he said.

 

I used to work for a mortgage company, and even when the owners were way behind in their payments, they were encouraged to stay in the home and maintain it, as opposed to just giving up and moving out. When I naively asked why, I was informed that an occupied house had a much better chance of retaining value than an unoccupied dwelling. So even though the payments weren't coming in, the house was retaining it's value for whoever ended up with it. I realize this is not the same situation that the OP asked about, but it seems somewhat relevant, at least in the discussion of occupied vs. unoccupied.

[Harry_Wilshusen]

BMWST Party House?

 

Most good sized real estate companies have a property management division or at least an agent who specializes in it.

 

A friend of mine rented to the son and daughter-in-law of one his neighbors. Basically just charged enough to pay expenses. Daddy down street made sure the property was maintained.

 

Everybody wins. Young couple just starting out gets cheap rent and can save. Owner gets expenses paid and a neighbor to keep an eye on things.

 

This was a 2 year arrangement.

 

 

[bmw_rider]

Most Realtors will also take on Property Management arrangements.

 

Not so! Many realtors WILL take on a listing to help find tenants - but very few of them will actually do the hands-on year round management duties. (Some may claim to, but I have yet to see one who actually does so.) FWIW - only about half of the 70+ agents in our four offices will handle rental listings, and NONE of them do property management. Rentals are a niche service category, and the skills and knowledge required (to do it well) are vastly different from doing residential sales. We personally only take rental listings from clients that we've done other business with, as a way to provide continuity and customer care.

 

If done correctly, property management is FAR more than simply finding tenants. A REAL property manager will make sure the property is kept up (several visits a year to check the property) as well as arranging upkeep. (Including services like grounds care, contractors, repair people, cleaning and preparation for new tenants, etc.)

 

A property manager will take 10-15% of the rent every month, and usually also charge for finding a tenant. (in addition to billing you for the advertising.) But it means that you as an owner are completely hands-off. The only time the management company will call you is when there are major issues. They take care of everything and you just get a check in the mail. You may never even meet the tenants if you don't care to.

 

 

This may be somewhat regional. bmw_rider and I are in the same area and there are at least a few Realtors around our area who also do property management work. I suspect that this has become a little more prevalent around here because of the decline over the past few years in the R.E. market.

 

However you find them, I think it's probably the best approach. If I were in the OP's shoes, I'd rather have some income and the knowledge that someone was in the home on a regular basis, as opposed to it being unoccupied.

 

Mike - you got your reply in before I could. But the same points-- different in different localities, and the economic impact since 2008 has them looking at 'non-traditional' but related sources of revenue.