Many people who buy real estate in the United States may investors do not live abroad, but only invest. Allocating American real estate and then renting out American real estate to obtain stable rental income is the most common investment method. However, due to the different environment and policies, how do you rent out your real estate for profit and management after buying a house in the United States?
For several years, the United States has become a country favored by Chinese people. In the boom of overseas asset allocation, opportunities are already in front of us, but risk aversion cannot be ignored. How to reasonably allocate US real estate, safely allocate real estate, and worry about being a landlord has become a common concern of home buyers.
The U.S. government allows overseas homebuyers to rent out the properties they buy and receive rent from them. So how to rent and manage real estate in the United States? There are only two ways to rent a house, manage it yourself, or let a professional rental company manage it. The former is suitable for investors who live in the United States for a long time; the latter is more suitable for investors who do not live in the United States for a long time.
The rent should be set in line with the market, and the price should not be too high, otherwise the time of the empty house will be lost. There is no normal house in the United States that cannot be rented out. As long as the rent is reasonable, it can generally be rented within a month.
Choosing a tenant depends not only on the tenant's credit, but also on the stability of the tenant's work. Because I am in the United States, I can collect the rent in a timely manner. If there is a breach of contract, I can notify the tenant as soon as possible so that the dispute can be dealt with in a timely manner.
If you choose to manage it yourself, although you can save some costs, you must clearly understand the terms of the real estate lease in the United States, and the housing lease law stipulates that the landlord must provide the tenant with a fixed local address in the United States, so that they can contact you at any time if they have any questions. . Tenants must also be provided with an emergency phone number that they can go to when they need help; landlords need to be aware of changes in local rents, and if a tenant doesn’t pay rent on time, the landlord will take immediate legal action.
For overseas investors, these requirements not only take a lot of time and energy to pay attention to, but also waste a lot of unnecessary expenses such as air tickets and telephone charges. Therefore, for overseas investors, it is more reasonable to manage and rent out the house by a professional house management company.
Advertise your home and find tenants
Advertise the house, find the tenant to draft the tenancy agreement, confirm the rent and the responsibilities of all parties
Conduct credit checks, rental history checks, employment income confirmation, criminal record checks on tenants to ensure landlord interests
Monthly rent is collected and transferred to the landlord's account
Regularly conduct house inspections and report to overseas landlords by email or telephone to assist in handling legal disputes related to renting, such as non-payment of rent; (if the tenant does not pay the rent, a professional lawyer is required to evict the tenant. It takes 3 months, which is one of the risks)
After the rental contract ends, check out
Relist the listing and find new tenants
The landlord and the broker sign an agreement to entrust the lease.
Brokers help find suitable tenants, usually through the MLS listing sharing system, publishing rental information, plus brokers' personal print advertisements and online media to find tenants.
In the application form submitted by all tenants, choose the most suitable one to sign the rental contract, and improve the details of the rental.
After finding a tenant, after the lease is signed, the commission (real estate brokerage fee) for entrusting the rental is generally 6%~8% of the annual rent (depending on the actual situation), and the cost of housing management is generally 5%~10% of the monthly rent . The management company will require the room rent to be paid monthly, and the deposit to be paid for 1-2 months.
It should be reminded that the repair costs of the house (inside and outside) and the lawyer fees required for eviction need to be paid by the owner, and the management personnel are only responsible for implementation. For the usual maintenance, if the owner is not in the United States, the management company can be responsible for looking for the maintenance personnel to quote, and the repair can only be started after the owner decides.