This is the last step in your mission to avoid foreclosure on your home and quite possibly to enable you to never have to worry about that being a threat to the security of your home ever again. You may well be setting up yourself for more than just that, by bringing in and setting up a house trailer. This could turn out to be income you need later on in retirement, and as long as you are able to keep it in good shape could last many years to come.
Get yourself a copy of the Landlords & Tenants Act Handbook. I found mine at the local legislative office in town. You may find it at your library or at the state’s housing office. This guide tells you everything you need to know to protect yourself from tenants destroying your property or not paying rents owed to you. You will learn all you need to know in the little handbook about developing a satisfactory lease agreement between you and your tenant. The next step is to develop the lease and make yourself several copies. You will need to also obtain several copies each of the notices described in your handbook. You will find where to find them in your state’s handbook.
Be a good judge of character and interview as many potential renters as possible. Check references and call employers to see how long they’ve been on the job and what kind of employee they are. Ask if they would rent their home to them, are they trustworthy, these types of questions. If possible call the former landlord as well. There’s really no need to check references as anyone can get friends to do this for them.
Now you have to figure out what amount the rent needs to be in order for you to make your regular payments on the house and stall the foreclosure on you home. Get out pen and paper and begin to figure up what this amount needs to be. Take your bank mortgage payment and add to it the estimated part of the tenant’s utility bills if you are tied into the house and sharing them. I am able to add the entire utility payments onto the tenants rent amount. You may be able to get this nice little added ‘extra’ as well. Add up your taxes and fire insurance. No extra insurance is needed in my state for renters. They are responsible for obtaining their own ‘renter’s insurance’. You may want to check with your insurance company just to make sure. Add any extra expense you will be charged for your tenant to live in your home onto the rent amount total.
I decided to offer free dish satellite TV by leaving my satellite connections in place and having the company technicians come out and wire it up to the trailer for me. It costs me very little extra, less than $20 a month. You can offer garbage pick up service, by adding one more can to your account for less than $15.00 a month. All these little charges you have, add them all together and come up with a total rent amount you need to get for your house. You really don’t want to try to make too much profit here. It will behoove you to keep your rent as low as you can so hopefully your tenant will pay his rent on time every month. You don’t want to over price or under price your rental. Take it all into careful consideration.
There’s more to do before you get there, but you’re getting closer to finally being free from the threat of foreclosure on your home, hopefully forever! The next article will take you closer to fulfilling that dream!