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Posted: 10/13/2013 9:52:08 AM EST
Looks like I will be moving out to southwestern Kansas for a year or two for work.

So, we are thinking about renting our house in KC for that time.

We are thinking of going through a property management company, so any recommendations or tips for that?

We already have a lead on some renters, friends of friends. We are debating on trying to just find a basic contract, and go that way.

Either way, how does insurance work on a rental? We want them to have renter's, of course, and our homeowner's policy will be on it.

Does one need like a Landlord permit or something?

(We don't want to sell at this time. two reasons: A) selling a house seems to take a few years in our neighborhood. B) we are planning on coming back in a year or two, and want to come back to our own house.)

Some other questions I have about renting property, but living out of state:

Residency: I assume I lose my MO residency? I'm still a property owner paying taxes, but things like licensing the cars and my CCW will have to be redone in Kansas?

For tax experts: I've been in KS for a couple months, and will be here through the end of the year living in hotels. So...I am betting my taxes are going to be FUBAR'ed this year?

Anybody have any other advice on this kind of deal? I keep flip-flopping on moving out here. (gawd, do I hate moving!! it's why I bought a house in the first place!!) But, I like this particular job, and the money is crazy. We're talking a good $25K raise, with overtime taking it close to 6 figures. Hard to pass that up.
Link Posted: 10/13/2013 10:43:36 AM EST
Originally Posted By ARinKCMO:
For tax experts: I've been in KS for a couple months, and will be here through the end of the year living in hotels. So...I am betting my taxes are going to be FUBAR'ed this year?

Anybody have any other advice on this kind of deal? I keep flip-flopping on moving out here. (gawd, do I hate moving!! it's why I bought a house in the first place!!) But, I like this particular job, and the money is crazy. We're talking a good $25K raise, with overtime taking it close to 6 figures. Hard to pass that up.
View Quote

I dunno about the rest of the stuff - other than renting is a PIA and I'd never do it. I've heard horror stories of people getting their houses just trashed by renters who have no respect for other peoples properties? As for your taxes, I think it won't make much of a difference. I used to work in KS, live in MO. I remember I had to file both MO and KS taxes, but you didn't pay both MO and KS. You pay your MO taxes, and then you use that to deduct from what you owe from you KS taxes. So if KS tax is higher, you pay nothing. If it is lower, you pay the difference, which is usually quite small.

And what filed are you in - I need to get something like that.
Link Posted: 10/13/2013 11:04:10 AM EST
[Last Edit: 10/13/2013 12:18:10 PM EST by ARinKCMO]
Railroad. Left the IT field a year and a half ago, and now here I am, already a Mainline Signal Maintainer. It's a good job with good pay, benefits, and retirement. Just wish this particular position was about 5-6 hours to the east...

And yeah, renters trashing the place, costing us an arm and a leg in repairs, etc have me very concerned. A very big part of me doesn't want to mess with it, and just stay there...
Link Posted: 10/13/2013 2:17:52 PM EST
Which railroad? Dad is about to retire from UPR next year. Hopefully your results will vary because other than the pay he has hated that job as long as I can remember.

DON'T rent out anything you care about. Renters destroy anything they don't own. I have several friends who thought it would be a good idea. If they weren't fixing something, they where spending time and stress on the eviction process.

If it's family or friends, maybe, if they are the type you can have that kind of relationship with.... otherwise I'd talk anyone I know out of it.
Link Posted: 10/14/2013 12:13:01 PM EST
you can deduct your motel and travel expense's for up to 1 year then where your job is becomes your permnant work location. you will have to fill out both kansas and missouri income tax . I travel for work all the time and if I am so far I cant drive home I deduct everything . just keep the reciepts . I have had up to 6 w2's from 5 states in one year
Link Posted: 10/14/2013 3:54:27 PM EST
you will be upset when you come back and see how your house was treated. Even "friend of a friend" will wreck things. Sorta knowing what has happened with your house in the past, and having done the "live in another zip code for an extended time, I would be inclined to say cut the losses and sell the house. If its not the perfect place you want to stay forever, I think you'll be better off being free of it, saving money while you're in 'nowhere KS' and buying a new place when you get back. Of course the risk with that will be the uncertain future of interest rates loan, and that sort of thing.
But knowing how renters treat places, and the difficulty collecting rent, especially when you can't knock on the door and give them a "pay up sucker" my inclination is to sell and save for later.

Link Posted: 10/14/2013 5:42:40 PM EST
Property management is a good deal if you're not going to be fixing anything yourself, or do not have the time to bother them for the monthly rent. You just pay the percentage and they handle all the BS, repairs under a set amount, etc......you just get a check every month. I'm part of a great one in STL, but do not know anyone in KC. Just make sure you find one that is licensed--they're usually part of a real estate brokerage (that's the way ours is.)

Insurance will actually be cheaper since you're not insuring all your stuff inside the house--just the building, liability, etc. The rent will have to have their own policy to cover all their crap. You don't have to require it as they might not be able to afford it. Not your problem. And if the place burns down, they're going to sue you anyway.

Check with your local municipality or fire district on the occupancy permits and things like that. You might have to change a few things to CYA if they're not to current building/fire code. Smoke detectors, CO detectors, etc.

You need to tread lightly around your mortgage, because you most likely signed a document saying you were going to occupy the property and not rent it. They could technically say you breached it and call the loan, but that's not going to happen in this market.

It doesn't matter where you own property, it's about where you plan to stay. If you're living in hotels, you can still maintain residency in MO. You need to talk with a CPA to take full advantage and a "out of town / travelling" worker. There are ALL kinds of deductions. Laundry, hygiene products, meals, etc. Travelling nurses clean up on this. If you're subject to any DOT limitations, you can claim 80% rather than 50% too.

Get all the details together and find a really good CPA. They'll be able to tell you the best course of action.

Link Posted: 10/15/2013 2:30:59 PM EST
cool, thanks guys, keep it coming! Knowledge is power and all that....
Link Posted: 10/16/2013 10:30:33 AM EST
Link Posted: 10/16/2013 10:40:08 AM EST
With not being in town, it would probably be a good idea to check out a property management company. Call Classic Property Management at (816) 436-9099. I'm sure they can answer any questions that you have. I'm not affiliated with them in any way. Get an idea of their fees and what services they offer in exchange for it, and see if it seems worthwhile.

I'm in the mortgage business and I know many people with rental homes. The general consensus is if you get good renters, you're golden. If you get bad renters, you're screwed. Keep in mind all of the potential issues, damage to your home, not paying on time, etc.
Link Posted: 10/16/2013 6:49:49 PM EST
You still on the South Side?
Link Posted: 10/19/2013 7:39:02 AM EST
Yup, down in Belton.
Link Posted: 10/19/2013 7:04:22 PM EST
I'm gonna give you a website to go to. It ain't fancy.


And no, you don't need a Landlord's license.

The biggest secret to landlording is this: Screen your tenants.

If you get good people in, you get a lot fewer problems.
Link Posted: 10/19/2013 7:26:32 PM EST
Hire a screening service, then charge the tenants for the screen. That way the service has all their personal info, NOT you. And also, they'll give you a "recommended", "not recommended", etc. That way they can't hit you for discrimination if you say NO!! Screening company said NO, not you.
Link Posted: 10/20/2013 4:14:51 AM EST
When think about renting my house and buying another, I picture the gal I saw at the Dollar General parking lot. She opened the tailgate of her Tahoe, grabbed the Rugdoctor carpet cleaner by its cord, and the handle, dragged it back until it simply fell out of the truck, she uprighted it on its wheels, and rolled it inside to return the unit.

I have two friends that have or had rental properties.
One friend got his finances in order so he didn't need renters in his property to pay his own bills. He was patient and found the right tenants. (Most were young adults going to grad school). 10 years later, I think he's got 5-6 properties now.
Friend 2 needed the renter's payment to pay his own bills. He let anyone in (couldn't afford to wait for the right tenant), they didn't pay, friend two declares bankruptcy.
Link Posted: 10/29/2013 7:09:41 PM EST
I currently own 3 rental properties and have owned and self managed up to 6 at once. The most important thing is tenant selection! The 2nd most important thing is being WILLING and ABLE to do repairs yourself. Many times that can mean the difference in a property cash flowing or not. Since you are going to be far away I would carefully select your tenants. The 2 worst tenants I've ever had were both employees and one was also the sister of a childhood friend. Get good tenants enjoy rental property, get bad ones hate rental property.

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