Tuesday, May 17, 2005
Lease Agreement
This is actaully one of those days where I have almost nothing to say about REI. The only thing that happened was I printed out the Lease Agreement from my agent and read over it. I don't have it with me as I write this, but I can say it sure is heavily one-sided in favor of my agent. If I recall, her payment for services is 100% of a month's rent. The term length is also until mid-Nov (meaning I'm locked into this agreement until then). The agreement also stipulates that if I get a renter or buyer in the property within 60 days after the agreement is up, I still have to compensate her. There were a few other things that caught my eye, but I'm drawing a blank now. The not-so-bad news is that she also sent me rental comps. Unfortunately, none of them were for my exact neighborhood, but they averaged about $0.59-$0.60/sf. This would make the rental on my property about $1,160/month. At that amount, I could cashflow about $50-$100/month, depending on what kind of terms I could get for a refi.
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6 comments:
So, what is this lease agreement for? Is it incase she finds people to lease the house from you? One months rent is pretty steep especially if there is no guarantee that they will be there for any amount of time or that they will actually pay on time. If you decide to lease it, I think I would ditch her first. This may just be the generic form her agency uses and she might not have ever even read it herself, although I wouldnt hold it against her.
nikki - I know what you mean, BELIEVE me. I read the contents of this lease agreement, and just shook my head. I made a deal with her regarding the sale of the house (full 3% commission), but I faintly recall her saying she would only charge me 80% of a month's rent if I lease a house through her. The part that really gets me is that I'd be tied into this contract until November.
ryan - Yes, it's a standard Lease Agreement the Texas(?) Board of Realtors use. It's basically her finding me a tenant. She mentioned briefly about lease/purchases before, but this document seems to only talk about a lease. If I pursue this with her, I'd definately have a list of questions to ask first.
Just find your own tenant, its not that hard.
I agree. Ditch her. You don't owe her any loyalty. This is a business and she obviously can't handle it.
I agree. Ditch her. You don't owe her any loyalty. This is a business and she obviously can't handle it.
Sorry about that. Hit the back button by accident.
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