Choosing whether or not to rent your single family home or townhouse because it isn’t selling or just because you want to wait until the market improves to sell can be a daunting task.  The experience can be either positive or negative.  Plus there are tax implications(consult your accountant).

Tenants are not in favor of accommodating a seller while they are living in the same single family home or townhouse.  Quite simply  they have no vested interest in accommodating showings or keeping the property in proper showing condition.  Tenants can really kill a chance of a sale.  In one extreme case I heard of the tenant required one week’s notice to show.  They had large dogs and needed to get them out of the house.  The agents client flew in to see just that one property and when they got there there was no one home, no key or lockbox, hence no showing.  If your tenant is not clean or tidy and especially if they have animals, be prepared for them to cause delays or not allow showings.  Unlike a seller, they may leave the property a mess which will really turn off a buyer.  Unmade beds, soiled carpeting and walls, dirty dishes in the sink, clothes all over the floor and an unscooped kitty littler box are just a few of my experiences.  Sellers should be prepared when a tenant leaves that their home will not longer be as perfect as they had kept it when they were living there.  Sellers should be prepared to paint, replace carpeting and repair “normal wear and tear” damages. Sure you might have a security deposit but it won’t cover much if there are significant issues.

I am the “queen” of rentals in the Basking Ridge area.  I teach rental classes to other agents and I have several investor owners that own properties in Basking Ridge, Bernardsville, Bedminster, Bridgewater and Branchburg.  The “B” towns I call them.  For as much due diligence you do in the beginning with credit report, verification of income, security deposit etc. you can never be prepared for what happens after the tenant moves in.  The worst case I have ever seen was a tenant that moved into a townhouse in Branchburg.  Credit was perfect, he worked for a reputable company etc. etc.  From the day he moved in he never paid a dime in rent or utilities.  All his initial checks for security rent etc bounced.  The eviction process took almost a year and when the property was finally vancant we saw they had taken everything that was and wasn’t bolted down.  Sinks, toilets, washer, vent coverings, outlet plates.  It was bizzare. their 2 large dogs that they were NOT supposed to have destroyed the carpeting and they left a nice pile of trash on the kitchen floor.  $35,000 later the place was habitalbe again and we sold it.

There are positive experieces as well.  If you do your homework up front, call references, call prior landlords, you will have a positive experience!  Also ALWAYS ask for Bank or Certified checks or Money Orders up front.  Put a clause in the lease that the tenant will accommodate any showing;  that a lockbox can be placed on the property and that the tenant will keep the property in proper showing condition.  The positives far out weigh the negatives, but still be aware the property will not show as nicely as when you were living there with your designer decor!

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