House with previous flooding issues

[Bonnie Hybner]

I recently acquired a house that has flooding issues. Neighbors claim that the house floods a foot of water every December. Previous owner said he only knew of one time water entered the house and he filed a flood claim. Since I am a full disclosure landlord, I feel it would be unethical to omit this information so I am having a hard time finding a tenant and I understand why. Should I just sell this place and move on? I bought it because it was close to the water and a highly desired school district. I am not making too much off it every month after paying back my loan. Thanks for any input!

[Lynn McGeein]

What do the neighbor's say happens every December to make the house flood?  Your flood insurance policy usually provides a report mailed to you that states whether or not there were previous flood claims, so that is something you can use for verification.  I'm not sure what a "full disclosure landlord" is, but I would not use that term as tenants may take it as you've done all the research for them regarding crime, sex offender list, potential school district changes, etc., which I would not hold myself responsible for unless your state requires those disclosures from the landlord.  I doubt it is necessary to disclose neighborhood gossip, and neighbors may have had family or friends that wanted to buy it or just don't want a rental in the neighborhood.  Instead of selling immediately, perhaps offer to pay for a tenant flood policy to cover any loss for the first year.  You are apparently covered with a flood policy as well, and a landlord flood policy that only costs $450 per year should mean low risk.  A good sturdy house on a huge lot in a good school district is likely worth waiting a year to see if the neighbors are wrong.