2 of our rentals had leases that expired in Dec. The former rent rate was $1025/mo. We put the house back on the rental market in January and got 16 applicants right away. The highest bids came from people who walked away from their homes and accepted foreclosure.
The only thing on their credit was the 90 and 120 day lates on their mortgages. Our prop manager did disclose to us that the applicants got foreclosed upon. However, they offered $1450/mo for the available house. We accepted and they put up 2 months rent as deposit.
My second property went to another “walker” that begged us to consider a rent-to-own/lease op. This one also offered above the asking ($1300/mo). With this one, we decided to do a 6 month lease to be replaced with a lease op as long as he pays on time.
The walking away phenomenon is working out great for me, as a landlord – so far. I’ll let you know in a few months if I get walked away from myself, but so far, so good.
