[5-DayForum] 5 day rent?

[Bill Effros]

Paul,

We have been renting using the 5-Day Method for 13 years.  You get the 
highest possible rent along with the best possible tenants.  We offer 1 
year leases with automatic renewals and cost of living increases.  We 
take 2 months security (which is not the first and last month's rent) 
plus the first month's rent.  People able to pay 3 months rent tend to 
be quite secure.  We use a daunting application form taken from a 
Co-Op.  We check everyone out.

I only wish we took as good care of our own place as our tenants take 
care of our rental units.  After 13 years they all look brand new, and 
people can't believe they were lived in by a succession of renters.

I don't favor elaborate lease/purchase options.  I think I can get more 
money on each side of the option if I leave a lease as a simple lease, 
and a purchase as a straightforward purchase.

The purchase option won't be exercised unless the market goes back up.  
And if that happens I know I can sell any property for top dollar in 5 
days.  Also I can rent any property for top dollar in 5 days.

So can you.

Bill Effros



pwmaples at comcast.net wrote:
> Joyce,
>
> Don't forget with renters you are not just getting rid of the property, you are gaining a tenant.  High bids do not always make the best tenants.  
>
> You may consider a lease with an option which will considerably decrease your exposure in that the renters will be eventually buying the property (hopefully) and these types of people usually take better care of the home.  Also, the deposit (if done properly) is non-refundable since it is there "option fee", giving them the option to purchase the home by a set date.  I would typically ask for 10% more than appraised value to purchase in 2 years.  If they back out you keep their deposit and do it all over again.  Attempt to get 3-5% for an option fee, although that varies by how the market is.  You may only get 2% in a slow market.
>
> Good luck.
>
> --
> Paul Maples
>
>
>
>  -------------- Original message ----------------------
> From: "Joyce Carpenter" <joiceanne at msn.com>
>   
>> Dionne,
>> Just a thought.  Do you have a realtor in Ca. that you "like & trust"?  If 
>> so, I've heard of a realtor handling a rental home for the owner when the 
>> owner lives out of state.  As far as the 5-day renting, I haven't a clue.  I 
>> live in Missouri and just sold it, myself, $65,000. less than the appraised 
>> value, so I can understand your spot.
>> Joyce
>>
>>
>>     
>>> From: "Schetzel" <schetz19 at msn.com>
>>> Reply-To: How To Sell Your Home in 
>>> 5-Days<5-dayforum at mailman.howtosellyourhomein5days.com>
>>> To: "'How To Sell Your Home in 
>>> 5-Days'"<5-dayforum at mailman.howtosellyourhomein5days.com>
>>> Subject: [5-DayForum] 5 day rent?
>>> Date: Thu, 31 May 2007 08:22:56 -0600
>>>
>>>
>>> Hi there,
>>> I saw on this list a few days ago mention of selling other things via 5
>>> day sale.  I was wondering if you thought it might work for getting a
>>> good price on a rental home?  The situation is this: I posted earlier
>>> about hour home in the Temecula/Murrieta, CA area.  We bought it in Aug
>>> 05 for $475k and now it is worth less than $420k.  (It's been sitting on
>>> the market since Aug '06)  In addition, our current mortgage has
>>> increased by over $1000 per month (don't get me started!) which means,
>>> factoring in realtor fees, that our down payment of over $100,000 is
>>> almost gone!  We can't bring ourselves to sell it in this market and so
>>> are considering refinancing and renting it out for at least a year.  We
>>> would need to get it rented quickly and we currently live in UT, which
>>> makes showing it difficult.  Instead of paying a management company to
>>> rent it out for us, I wondered if we advertised that we would rent it to
>>> the highest bidder, hold it open for two days, when we can be there in
>>> person to meet people, perhaps that would be a better solution.  The
>>> higher the rent they pay, means the higher the rent we can pay here in
>>> UT on a rental home while we wait this bad market out.  I fear it
>>> sitting unrented for months and us having to lower and lower the rent
>>> until we get someone in there we don't want.  Might this work?  If not,
>>> what is the flaw??
>>>
>>> Thanks!
>>> Dionne in UT, home in CA
>>>       
>>     
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>>>       
>>     
>
>
>   
>
> ------------------------------------------------------------------------
>
> Subject:
> Re: [5-DayForum] 5 day rent?
> From:
> "Joyce Carpenter" <joiceanne at msn.com>
> Date:
> Thu, 31 May 2007 16:39:51 +0000
> To:
> 5-dayforum at mailman.howtosellyourhomein5days.com
>
> To:
> 5-dayforum at mailman.howtosellyourhomein5days.com
>
>
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