The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: neo von retorch on September 01, 2014, 07:58:19 PM
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Should I notify my mortgage lender and homeowner's insurance provider?
Should I try to have my utility bills sent to my new address? (I pay these online, so this isn't a big concern.)
Are there any other changes I should be aware of?
Thank you!
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You will need to change your insurance to rental insurance. No need to notify the mortgage lender. Have the utility bills sent to your address, but the tenant needs to take over the utilities in his/her name when s/he moves in. Your insurance may lapse if the property is vacant for more than 30 days, so get a tenant in there ASAP. Otherwise, you may have to purchase a vacancy rider, which can be expensive.
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Thank you.
- I've contacted my insurance agent to get the changes made (also need renter's insurance for myself at the apartment.
- I'm renting out bedrooms. Do I need to have someone take over utilities? Not just electricity, but also sewer, trash, internet?
- I already have 2 of the 3 bedrooms rented. I have interest in the third, so I'm not worried about the place being vacant.
Is there anything else I should take into consideration?
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I'm renting out bedrooms. Do I need to have someone take over utilities? Not just electricity, but also sewer, trash, internet?
You can keep it in your name and have them reimburse you, probably. Some utility companies won't let you be on multiple properties, some will. That may dictate what you need to do.
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Did you make your tenants sign a lease agreement? What does your lease say with respect to who pays the utilities?
If you haven't made them sign a lease, ummm, you should.
- jnc
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Yes, they sign an agreement. It specifies what is included and says "high usage" will be reviewed as needed. In 7 years, I haven't had any issues with it, beyond people leaving the lights on sometimes or the occasional "damn it's hot in here, let's crank the AC."