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We’re Selling Our Home And Moving Into A Rental House

BY Michelle Schroeder-Gardner - 86 Comments

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.

Today, I am posting an update on our decision to move and our plans for the next several months. 

I know I have been all over the place lately when it comes to what 2015 will hold for us. I think we finally have our plan down though!

We have decided that we will be putting our home on the market in the next few months and moving into a rental house somewhere in Colorado. There are quite a few options, so it’s just going to be about finding something that’s right for us.

We have also decided that we are going to put our home buying process on hold so that we don’t feel as rushed trying to determine where we want to buy our next house (since the towns in Colorado that we like are between 14 and 20 hours away). This will be better for us because we can hopefully then move around in case we do not like the town that we originally move to.

Our plan is to find and move into a rental house in Colorado before we put our house on the market. That way we can be completely out of our current home so that it can be clean and dog free for when potential home buyers come and look at it.

This means that we need to find a rental soon.

We have been searching and have found a few places, but are just waiting to hear back.

We also haven’t rented a place since we were 18 (and it was just from a family member so we really didn’t get the full experience), so the thought of going from a home of our own to dealing with property management companies or a landlord is a new experience for us. I know this wouldn’t stress a normal person out, but for me it does!

Below are some of the things we are keeping in mind when we choose our rental.

 

Our budget.

We’ve decided that our very top budget for a rental in Colorado will be $2,000 per month, but we will be hoping for something cheaper. This seems crazy high to us, as we own our current home and our mortgage is only $964 a month including taxes, home insurance, and everything else.

However, we need a rental house (not an apartment) that allows dogs and preferably has a fenced in backyard, so I know our budget has to be higher to accommodate the things that we need.

I do have a question for others about this topic. Do most people tend to negotiate the price of a rental?

 

We will need to declutter more.

Since we might decide to move around a couple of times (one of the many positives of a location independent business!) before we truly settle down again and buy our next home, we want to live a much more minimalist lifestyle.

This means I need to start getting more serious about my decluttering mission as I need to get rid of much more than I originally planned for.

Some of the things we might need to get rid of or slim down include:

  • Furniture. Our current home is full of furniture. We have three couches, a sectional, and a recliner. We will definitely have to sell a few couches, which I am completely fine with because that means MUCH less for us to move. We also need to get rid of some furniture bed sets as both of our guest bedrooms have a full set of bedroom furniture in them. We will keep one though so that my sister has a place to live when she is on break from college.
  • Clothing. I want to get rid of much more clothing than I originally thought. I have items in my closet that I’ve just been holding onto for the “perfect occasion” but I just need to get rid of them.

 

Miscellaneous.

There are many others things we need to think about and/or remember as well when it comes to finding a rental.

  • Renters insurance. We will definitely be paying for this. I’ve heard it’s relatively cheap so I have no problem paying for it as I like having peace of mind.
  • Utility costs. This is a big thing for us to think of when we look for a house rental in Colorado. We had a problem with the house we rented when we were 18 and I do not want to make the same mistake again. I still remember our heat bill being around $400 a month for our tiny 400 square foot rental house, and we even kept the house cold. It didn’t make any sense. This time around, I will try to do as much research and I’ll be sure to ask the landlord what the average utility bills are.
  • We will inspect the house. I don’t want to get charged for the previous tenant’s damages, so we will be sure to take pictures and document anything we find.
  • Is there a guest policy? Occasionally, my sister will be living with us. For example, this summer she will have a few months where she will be living with us until her classes start up again. I need to make sure that the landlord is okay with that.

What tips for finding a good rental house do you have for us? Is there anything we are missing?

 

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About Michelle Schroeder-Gardner

Michelle is the founder of Making Sense of Cents, a blog about personal finance and traveling. She discusses how her business has evolved in her side income series. She paid off $40,000 in student loans by the age of 24 mainly due to her freelancing side hustles. Click here to learn more about starting a blog!

Comments

  1. Sarah says

    January 23, 2015 at 2:05 am

    I’ve never rented a house, just an apartment, so sorry, no advice there. However, good luck with selling and moving. I think this would stress anybody out. Moving/selling/renting are all big deals. Good luck!

    Reply

  2. Cindy Merrill says

    January 23, 2015 at 4:03 am

    We may soon be in your situation- we’re selling our cabin home up here in Owls Head NY- it’s been appraised & insured for $100,000 and by husband says we’d sell for $55,000 , if the whole amount was paid up front. (Were listed as $59,500 in case you know anyone interested).
    We have 2 cats, that complicates things. There’s a few houses for sale around Binghamton NY where my husband’s company is moving to.
    My advice on renting: Try not to get locked into more than a year’s contract.

    Reply

    • Mary says

      January 23, 2015 at 3:15 pm

      Cindy as someone who is from Binghamton, if your buying or renting be sure to ask about local property/school taxes. Everything is a little bit screwy with the large student population and every town/hamlet is so different in the area. Make sure to try Spedies 🙂

      Reply

  3. Kemkem says

    January 23, 2015 at 4:17 am

    Congratulations on pulling the trigger. It is stressful and exciting at the same time. I have been on both sides. Yep, you can negotiate on the price. Our primary house was rented for $350 less than our asking price, netting us $350 per month after every last bill was paid(taxes,insurance,hoa,pool etc). I had put $700 on top of the carrying costs because that was the going rate around there. I went down because the renters had solid credit, has owned a home before (there is usually a different mindset with them, they tend to take care of your stuff better). She had 2 huge dogs, but we were able to deduct damage from their deposit at the end.
    -pick your management company carefully. If they are close to the property, it’s good. I have made the mistake of having far away (like 1.5hrsaway) who are too lazy to show and just give the renters the lock box combo, which is illegal of course. They go in, leave the a/c on etc..and you get an $850 bill at the end of the month. That changed quickly the next go round as l had them put the utilities in heir name, and no lock box. It won’t be bad, you’ll see. A lot of excitement coming up for you! Goody goody..have fun,,and if l can answer any questions or tell you what l did (lessons learned, and what NOT to do.. 😉 ), let me know..

    Reply

  4. Thomas @ i need money ASAP! says

    January 23, 2015 at 6:11 am

    Hey Michelle, I would totally consider negotiating on rent. You’re probably close to the ideal renters (well, except for the pets). Have you checked into vacancy rates? If vacancy is high then definitely consider negotiating a bit. Even better if you have a couple of places you’re considering renting. There’s no harm in trying and it could save you 5-10%. Good luck!

    Reply

  5. Gina Horkey says

    January 23, 2015 at 6:18 am

    It sounds like you’ve got a great handle on the process. Good luck on finding the right place. As far as rental negotiations – everything’s negotiable right? The worst they can say is no!

    Reply

  6. C@thesingledollar says

    January 23, 2015 at 6:46 am

    Negotiating rent probably depends a lot on the place you’re moving to. If the vacancy rate is really low (you’re in New York City, or a very popular resort town, or something) you likely won’t have much luck. However, in a town with a lot of supply, you should be good-looking prospective tenants so they might well be willing to negotiate.

    I promise, being a renter is really not bad! The key is to choose your landlords wisely, and honestly it’s not that hard to do — make sure you meet, in person, whoever you’re going to be dealing with primarily, and see how you feel about them so you can avoid super sketchy people. I’ve never had a really bad landlord experience, though some have been more responsive than others.

    Renter’s insurance — you probably know this but you can usually get a discount on your car insurance if you have it with the same company. I pay I think about $2 more for both together than I would for the car alone 🙂 It really is cheap.

    Good luck! And I know you know this, but really, do try to de-stress. Renting is actually pretty chill because, hey! At the end of the day the most you can lose is your security deposit.

    Reply

  7. Sarah says

    January 23, 2015 at 7:10 am

    Woo-hoo!!! Congrats on this decision!! I bet you are SO excited to get out there!! 🙂 I was so desperate to go by the time we moved to NC…it was hard being in AZ those last few months (we had to sell our house before we could move).

    Definitely a good idea to rent for awhile before buying! Like you guys, our house payment (in AZ) including everything was $959. Our current rent is $1600/month. Our house is bigger here, but obviously it is more expensive per month to rent than own. As a former homeowner, renting has been GLORIOUS! You will love it!!

    You can DEFINITELY negotiate the price of a rental. I will say though – if you’re renting through a company (like Colony America, Invitation Homes, etc) you usually can’t. An actual landlord though is willing to negotiate. We found a rental house we didn’t end up getting but talked him down from $1995/month to $1800/month if we paid by the 25th and if my husband did most of the maintenance. We didn’t negotiate the price of the rental we’re in now because we thought $1600 was more than fair, but we did ask for half off the first month and she obliged!

    Good luck Michelle!! Thanks for sharing your journey with us! 🙂

    Reply

  8. Holly@ClubThrifty says

    January 23, 2015 at 7:31 am

    Wow, what a big decision!

    As a landlord, I have negotiated rent before. I probably wouldn’t with someone who has dogs, though. You will probably find fewer people willing to rent to you in the first place, let alone those who will negotiate. Just being honest! You may also need to put down a bigger deposit. I’m sure you will find something though. Good luck!

    Reply

  9. Betsi says

    January 23, 2015 at 7:40 am

    Hey Michelle ~ exciting times for you guys! We sold our 3500sf home and moved aboard our 47′ sailboat with our two dogs 2 years ago. The best advice I can give you would be to be BRUTAL when decluttering. Go through and sort. Once you have decided what to keep, go through those items a second time. You will be pleasantly surprised what you can get rid off without an emotional attachment! If you are planning to get rid of furniture or other large and bulky items, take pictures and post them on Facebook – I sold EVERY piece of furniture that way within 24 hours of posting it on Facebook! Though we’ve since settled in Florida and purchased a condo we still enjoy the nomadic life ~ what fun new places and adventures are! Enjoy life and embrace this new chapter of yours!

    Reply

  10. Mrs. Maroon says

    January 23, 2015 at 7:46 am

    A huge bonus I see about your plans to downsize furniture and move before you sell is the opportunity to stage the house. Clearing out excess stuff always makes a house look nice, but completely vacant can be jarring too. If at all possible, I’d consider packing up what you want to take and leaving some of the excess furniture in the house until it’s sold. Then offload the furniture afterwards. Logistically might be a little more cumbersome, but could help polish off the house. But I’m no realtor – rely in them. And get a good one!!!

    Reply

  11. Amy says

    January 23, 2015 at 7:55 am

    Congrats on making a decision and starting to move forward with your plan! How exciting!

    I have never negotiated rent, but it certainly can’t hurt to try. And renting definitely has its advantages, especially if you don’t enjoy yard work/home maintenance! Good luck!!

    Reply

  12. Fig says

    January 23, 2015 at 8:03 am

    Exciting! I think renting is a good idea so you can get used to the area and decide what you really want. Renting with dogs does make it harder since you’ll find less available rentals and like Holly said, many won’t negotiate with you. It took me longer to find a rental house that would accept my large dog but I love having a fenced in yard and plenty of space!

    Reply

  13. Shawn Michael Hartwell says

    January 23, 2015 at 8:29 am

    Best wishes with your moving. My wife and I will be working on that In a couple years ourselves and it’s always a hassle. I’ve never rented a house soI can’t offer any advice on that, but I don’t think negotiation is out of the question.

    Best,
    Shawn Michael Hartwell

    Reply

  14. Emily @ Simple Cheap Mom says

    January 23, 2015 at 9:09 am

    We’ve considered renting in a nice walkable neighbourhood near family, but the sticker shock keeps getting me. Like us it seems much more expensive than our almost paid off house in the suburbs. It’s great that you’re making the big move. I’ve never rented, so I can’t give you any advice.

    Reply

  15. Elroy says

    January 23, 2015 at 9:16 am

    The rental market in Denver [not sure where in CO you are looking] is HOT right now. I work with families who are poor and they had to move because their crappy apartment rent went to $1800/month [including utilities]. And by move, I mean to Oklahoma.

    If I were to ever rent again, I would get a video camera and invite the landlord/manager over for a walkthrough. I’d point out every little thing and then compile a list afterwards and send to the owner. I’ve been screwed way too many times by scumbags.

    And of course you can negotiate. The dog doesn’t help your cause, but if you can wave some cash and explain you’ve owned a home before and will treat it like your own, you can probably wiggle them down [assuming they don’t have someone else in line].

    Where are looking to move to?

    Reply

  16. Mrs PoP @ Planting Our Pennies says

    January 23, 2015 at 9:33 am

    As a landlord, the dogs are tough. We have a firm zero dog policy, so e prepared to hear a lot of “no’s” if you are asking to negotiate on that point as I know we’re not alone in it being one of our “non-negotiables”.
    But I think your plan is fabulous. Be up front with your landlord about your sister and it should be great!

    Reply

    • Michelle S. says

      January 23, 2015 at 1:46 pm

      We are only contacting places that allow dogs, and so far have received good responses. I’m hoping we find something that we love!

      We are actually right now talking to someone who wants to meet with us next week. We love the house and the location, and told them that we are self-employed, that we have dogs, and that we are out-of-towners, and they still seem interested. Hopefully they are still interested next week 🙂

      Reply

  17. Hilary says

    January 23, 2015 at 10:01 am

    I think when it comes to negotiating rent, it depends on the market. Right now, in our area, it’s a landlord’s market. We had three full applications submitted, but probably 50-60 inquiries that we didn’t follow up on within about 2 weeks’ time. Since that was the case, we were firm on the rent since there were people willing to pay it.

    The good thing about living in a rented house is that you don’t have to stress about the same issues you do when you own a home. No worries about the HVAC system or the hot water heater or the roof leaking because it’s not your problem! Lol.

    And as for the guest policy, usually your lease will specify. Ours notes that no more than four people should occupy the home at any given time and any guests should not stay longer than two weeks. Our tenants have a grown-up son who lives with them half the time, so we wrote his name into the lease so that he is not considered a “guest” but rather an occupant of the home, but he is not held to the lease contract like the tenants are.

    Reply

    • Michelle S. says

      January 23, 2015 at 1:50 pm

      This is all great to hear! We are not so much interested in negotiating the price of the rent, mainly just that some houses are asking for a huge deposit, sometimes up to $5,000.

      Reply

  19. Lauren says

    January 23, 2015 at 10:10 am

    This sounds like the best idea so that you don’t get tied down to one place, if you aren’t sure about the long term. I’ve never rented a home before, so no tips, but hopefully you can find a great place with a good landlord!

    Reply

  20. Joseph Hogue says

    January 23, 2015 at 10:24 am

    Hey Michelle,

    Congrats on making this decision!
    Great plan, by the way, sounds like you’re on the right track. You might be able to sell your house semi-furnished.
    And yes, definitely try to negotiate on the rent on your new place. Can’t hurt to try.
    Good luck!

    Reply

  22. Kristin says

    January 23, 2015 at 11:40 am

    In my old rental, my then boyfriend practically lived at my house (along with his dogs) and it wasn’t a big deal. As long as I paid my rent on time, property management really didn’t get involved with my life.

    My biggest tip – how involved is the landlord or property manager. I checked out a couple rentals where the landlord lived next door (no thanks – I don’t need big brother!) and another landlord who wanted to do all kinds of projects to the home while I lived there (no way was I going to have him coming and going all the time!) I prefer a property manager because it’s run like a business; everything is in writing, there are laws to protect yourself better, etc.

    Check with properties anyway if they will accept pets, especially fenced in homes! That’s half the point of renting one so you can have pets right?! My old place didn’t and I asked anyways. I had to pay an extra security deposit for my 2 dogs, it was no big deal!

    Reply

  23. Alicia says

    January 23, 2015 at 12:17 pm

    Whoa, that’s a big change 🙂 I personally like renting when I don’t know how long I’ll be tied to an area. Right now we’re renting an apartment (house converted to 3 units), and I love the flexibility of it, though there are sometimes quirks.

    We have cats, and so before I even look on Canada’s version of Craig’s List (kijiji), I filter out properties that don’t allow animals. It’s non-negotiable! It meant we’re in a bit of an interesting unit, but they’re our family, and they’re not going anywhere… soo, it is what it is.

    Reply

  24. Kayla @ Femme Frugality says

    January 23, 2015 at 1:04 pm

    Personally, I hate renting. I like that I “own” my house so I can decorate how I want, paint, put holes in the walls to hang things, not worry about a pet policy, etc. But I can see why you want to rent first to make sure you are happy with the community you move to. I knew I’d be okay in my town because I’m from here and was just moving back after finishing college.

    Reply

  25. Erin @ Journey to Saving says

    January 23, 2015 at 2:31 pm

    I’m so excited for you, and can’t wait to see what you find in Colorado! I’m totally, 100% with you on traveling around to find a place to live. We’re actually taking a trip this summer to another city with hopes that it’ll fit what we’re looking for. I just wish my fiance was location independent as well. Good luck with everything, and don’t stress too much! (Also, I definitely plan on negotiating rent when our lease is up.)

    Reply

  26. Brenda says

    January 23, 2015 at 2:34 pm

    I have been a landlord before and I was an Insurance Agent. Check with an Insurance Agent in CO to be sure as the laws vary from state to state but if you get renters insurance it usually includes any damage that a pet you own might do to the property. Of course with large breed dogs you have liability issues especially with certain breeds. Renters Insurance is very inexpensive and well worth it.

    When I was a landlord I did negotiate price from time to time. Since our home burned down a few years ago we are now living in that rental property. Glad it is paid for! 🙂 We did go from over 2200 sq ft to less than 950 sq ft. At least we didn’t have as much furniture to buy for it. It has been long enough that I can laugh about it now.

    Reply

  27. Nikki Frugal says

    January 23, 2015 at 3:34 pm

    The best advice I have is declutter everything! I moved from the west to the east. Even though I moved myself there is so much stuff I brought with me that now when I look at it I’m like…why? Why on earth did I bring this with me? Furniture can be replaced, Clothes can be replaced. ETC. Obviously some stuff but in the end it’s just…stuff. lol

    Reply

  28. diane @smartmoneysimplelife says

    January 23, 2015 at 3:51 pm

    Sometimes, the hardest part is making the decision. You’ve done that so the rest ought to fall into place.

    My suggestion for you, other than being brutal with the decluttering, is to take a walk around each neighbourhood you’re considering. It’ll give you a feel for the place and the people. Much nicer to live in a community where people pass the time of day with you rather than one where they avoid eye contact.

    One more thing, make sure you double check all ‘For Sale’ images before they’re published. You’d be amazed what you DON’T see before the photo is taken and is glaringly obvious afterward; like a pair of shoes by the front door.

    Good luck!!!

    Reply

  30. Megan @ Megan and Eggs says

    January 23, 2015 at 10:07 pm

    When I moved to Los Angeles a few years ago I stayed with a friend for a few months until I found what area of the city I wanted to live in. I think it is a smart decision for you guys to get out there and live before you make the decision where to buy. Good luck to you. Hopefully you will be able to liquidate a lot of that stuff you are decluttering.

    Reply

  33. Pinterest Addicted says

    January 24, 2015 at 9:00 am

    Thanks for this post! I am about to be in your same situation. We are currently living with in-laws and are looking for a rental in Oklahoma. Since we are young and have not had much experience with renting, this post greatly helped me see what we need to look for. I greatly benefited from the comments on this post as well. Hope you find the rental you are looking for!

    Reply

  34. Mrs. Frugalwoods says

    January 24, 2015 at 9:50 am

    This is so exciting! Congrats on making the move to CO soon! I think you’ve covered your bases with rental considerations. You’re smart to get renter’s insurance and yes, it should indeed be pretty cheap.

    The best rental situation ever for us was when we rented a home that we were essentially house-sitting. The owner lived overseas most of the year and he left the house fully furnished and would come back every few months and stay in the guest room. We took care of the home and did maintenance repairs ourselves. In exchange, our rent was well below market rate.

    Since you two are responsible adults, any landlord with a similar situation would love to rent to you! I imagine you could use your responsible adult status to your advantage in negotiating rent too–it’s at least worth a try! Good luck!

    Reply

  35. Jayleen @ How Do The Jones Do It says

    January 24, 2015 at 1:07 pm

    Utilities are a huge consideration. We had the same type of experience you had with electric. We owned a duplex that was 900 square feet and paid huge electric bills every month, even with a wood burning stove. It was scary to get the first bill in our new house but we were surprised that the amount was a lot less for more than double the space.
    What an exciting adventure you are about to go on!

    Reply

  37. catherine says

    January 25, 2015 at 12:34 pm

    I can’t stress rental insurance enough. While we were renting our apartment it was less than $20 per month. I don;t know how it will work with a detached home though, whatever the cost though it’s a blessing if you need it! Also make sure you do a GOOD home inspection for every tiny thing you may think might bite you in the ass…friends of ours were charged a TON when they moved for repainting even though they didnt hang anything on the walls- previous holes from previous owners they just ignored. Good luck!

    Reply

  38. Mr Ikonz @ Project Ikonz says

    January 26, 2015 at 6:49 pm

    That’s a huge jump in your monthly accommodation budget!! 🙁
    But if you stick to your plan, it’s won’t hurt your finances too much over the long term.

    Good luck with the move! At least you’ll take away some of the headaches of home ownership!

    Reply

  39. James@StartingNegative says

    January 26, 2015 at 10:07 pm

    Nice choice in Colorado. I’m from the Seattle area, so I definitely know the pull of beautiful surroundings and (for me) the mountains.

    I would think that you could negotiate the price of the rental if you’re dealing with the landlord directly. They might just say “the owner won’t let me” or something similar, even if they’re the owner. That’s a tip I read on some landlording site. Regardless, I doubt it would hurt to ask!

    Reply

  40. Jessica says

    January 27, 2015 at 7:56 pm

    This is pretty much what we ended up doing when we moved except we rent out our house and we are in an apartment because that’s all we could afford in Los Angeles… Depending on the rental market where you move you may be able to negotiate. I haven’t had much luck with that here because there’s just so many people looking to rent. It sounds like you guys have a great plan and I wish you the best of luck!

    Reply

  41. Brittney says

    February 6, 2015 at 7:43 am

    This is a big step. I think paying a high rent would get me too because mortgages are so much cheaper. But, you are right, this will allow you time to find the home you really want and ultimately you will be happier with your decision. I hope you guys find exactly what you want.

    Reply

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