Renting an upgraded property

We bought a new construction condo in 2014 and upgraded it nicely - nice hardwood floors, quartz countertops, upgraded electrical options (surround sound wiring, cat5 wiring), nice kitchen backsplash and bathroom surrounds, upgraded carpet, etc etc.

We listed this home for sale, but are now considering renting it. Renting it would make us cash positive, around 200-400 dollars a month. The home has appreciated from 440k to ~600k.

We are worried that this property would get damaged by renters and lead to a major loss. Does anyone have experience with this? Is it mistake to rent this type of property? Would you sell instead?

Thanks in advance!

slizzap said:

We bought a new construction condo in 2014 and upgraded it nicely - nice hardwood floors, quartz countertops, upgraded electrical options (surround sound wiring, cat5 wiring), nice kitchen backsplash and bathroom surrounds, upgraded carpet, etc etc.

We listed this home for sale, but are now considering renting it. Renting it would make us cash positive, around 200-400 dollars a month. The home has appreciated from 440k to ~600k.

We are worried that this property would get damaged by renters and lead to a major loss. Does anyone have experience with this? Is it mistake to rent this type of property? Would you sell instead?

Thanks in advance!

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One of my clients purchased my West Irvine home which was fully upgraded.  They requested a higher security deposit amount of a little over 1.5x the month rent and I helped them screen the tenants. 

depends on the property.  If it's a 2/2, 1/1 you're competing against all the newer upgraded Corp own apartments.  If it's a 3/2 I'd definitely keep

As for the upgrades most you don't need to worry about, the electrical, cat5, countertops etc. they'll be fine.

The upgraded carpet will likely get trashed in a few years. Carpet is a rapid consumable in rentalsl. It depreciates out.

The only piece I'd worry about is the wood floors.  I've had tile guys do repairs on damaged tiles and stone flooring, inexpensive, quick and unnoticeable unless you know right where it isn't looking for it.  I haven't found that for wood.  Any landlords have a good wood flooring repair guy?

Screen your tenants well.  I agree with USCTrojanCPA that you can ask for a higher deposit, and I would add that a high FICO shows somebody that is responsible with their finances, which means they are probably responsible with other things.  Also, call their previous landlords for references.