Mark -
<font color="blue">You might actually get to go and relax on you weekend trips. Can you handle that?</font color>
Don't laugh! I'm having to completely re-think my agenda when we go up now. My immediate thought is to spend more time with the kids 'cuz they've been complaining that all I do is work and there's nothing for them to do. I see a lot of fishing, hiking, gold panning, etc. in our future.
Reminds me -- the new caretaker loves to fish and is anxious to clean up the pond and hopes I'll let him stock it with fish other than the bass and catfish that seem to naturally live there. Told him I'd think about it (as if I couldn't wait myself). [img]/forums/images/icons/wink.gif[/img]
<font color="blue">My only practical question is whether you have looked into any insurance issues</font color>
Boy, howdy!!! This couple has a 2-year old boy, which was almost a deal-breaker for us. What we've now done is we've gotten an umbrella liability policy. We had to meet some requirements, but managed to get $1 million worth of coverage for $250 a year. We realize it wouldn't be enough if the unthinkable happens, but our agent said it was a reasonable precaution.
We also had them sign a disclaimer whereby they acknowledge that the property has many potential hazards (and we listed a bunch of them) and that they understand and take responsibility for the risks. Never know what could happen if we wind up in court, but figured it might help.
We also required them to install a safety enclosure (we settled on a chain link fence) around their yard for the child, and a few other things we could think of to improve the situation. We paid for the materials -- he did the labor.
Are we still concerned? You bet, but they seem like excellent parents, and they see this as a great opportunity for their child to live in such a beautiful environment. What would you do?
EJB -
<font color="blue">I'd be careful about having some sort of legal agreement and/or lease worked out</font color>
Couldn't agree more. I spent nearly a week hammering out the contracts which covered their fannies as well as ours. As far as the work-for-rent issue goes, the basic agreement is that it my responsibility to maintain prioritized list of things to do, and it is their responsibility to keep records of what they have done.
We wrote up a fairly standard tenant lease agreement which includes a specific rental fee. We also added a clause that all or portions of that fee may be offset by the terms of the caretaker agreement, which is a whole separate contract.
Paul -
<font color="blue">How do you determine the value of the work performed </font color>
The caretaker writes up a contract for each chore (his idea), as if it were one of his regular jobs (remember, he has his own business). When/if I agree to the terms, the value he bids is applied towards the rent. We kinda do these in batches so we can both stay ahead of the game.
Should I feel that I'm not getting my money's worth, or he feels that I'm asking too much, the contract states that a neutral arbitrator, agreed upon by both parties, be called in to settle the dispute. I'm actually a pretty lenient guy -- as long as the place is being well looked after and maintained, I ain't gonna complain. He also seems to take great pride in his work, so I think we're off to a good start.
<font color="blue">What about utilites?</font color>
Basically, the contract gives them a utility "allowance" (a pretty generous one, if I say so). If they exceed the allowance, they are liable for the overage. They like that arrangement.
DumbDog -
<font color="blue">I am sure that they can not keep the pace up that they are at</font color>
Remains to be seen. This guy has already built up almost 3 months worth of rental credit which I am obviously very pleased with. Part of the burden is on me to make sure I provide him with a list of things to do, and part of the burden is on him to complete them in a timely fashion (as per the contract). The contract cuts them some slack to allow for the rainy season, illness, injury, etc. They can fall behind a full month due to such circumstances, but then an attempt to catch up must be made over the ensuing 3 months.
This fella is an admitted hyper-active ball of energy (his wife rolls her eyes and mutters, "you got that right"). I once sent him an email very late at night, and I was surprised the next day to see that he had replied at about 3:30 a.m. Turns out he goes to bed around 8:30 pm and gets up at 3 am, at which time he does his contracts, bids, billing, etc. By 4:30 or 5 am he is usually out on the job, and frequently works until sunset.
I'd forgotten about this bizarre schedule he claimed until this last weekend when we were at the property. I got up at my usual 6 am and started my usual routine. It's still dark around here at that time, and at 6:15 I happened to notice the light was on in the garden shed (actually a nice little building). Figured I or he left it on the night before by mistake. When I went out to turn it off, you guessed it, he was in there installing new outlets and wiring fixtures (part of making it into his shop). Since he was almost done, he must've been out there for at least an hour or two. [img]/forums/images/icons/crazy.gif[/img]
DourBob -
<font color="blue"> I hope your new caretaker is with you for a long, long time.</font color>
Fact is, Bob, it feels like this is just too good to last. These young folks (late twenties) tell me that this is their big chance to save up to buy their very own house. She estimates 5 years, and he thinks it will take longer. Either way, my property is gonna look a whole lot better than it has in recent years. [img]/forums/images/icons/smile.gif[/img]
Read the replies to your post earlier and felt I had nothing to add other than the T&C concerns. I had a property in another state for several years on a similar setup rent/repair credits, unfortunately it was not successful but with the right people it works, and sounds like you have the right people.
It certainly appears you have covered all the bases and then some with this couple and it's refreshing to hear of yours others success. Keep us posted on the progress.
Harv,
<font color="blue">How do you determine the value of the work performed </font color>
In my case this was handled by the rental agency. I did pay my neighbor 50 dollars a month for the first year to be on stand by in case I needed any maintenance done. Never used him so I cancelled that agreement.
When work was performed by the renter he gave me the receipt and I sent him a check. Labor was never a factor as these were small projects. The larger projects were handled by the rental agency.
<font color="blue">What about utilites?</font color>
Utilities are in the name of the renters. That includes, telephone, electric, cable, etc.
PJ
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