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Old 08-31-2010, 06:44 PM
 
Location: SoCal
657 posts, read 2,317,742 times
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For all you landlord that own property and are renting them out, how are you finding the ability to find renters in our down economy?

How long, on average does it take to find a renter for your units in LV?
Are there large turnover rates in your units when they are rented?

Would you say it's better to get a long term rental in Vegas or a own vacation rental in this economy?

I'm thinking of purchasing an investment property, but not sure how long it would stay empty. With a vacation rental, I can charge quite a bit more, and also have a place for myself when I travel to Vegas. As well, I'm reasonably sure the vacation rental would be rented most of the year as there really isn't a low season in Vegas .... or is there?

Any thoughts are appreciated.
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Old 09-01-2010, 02:00 AM
 
Location: The North
4,962 posts, read 8,675,201 times
Reputation: 3831
Hard to say because I have two houses in high demand areas. I had an agent put them on MLS and priced them a little bit below what appeared the market for comp properties. The first in Silverado Ranch drew I think 10 applicants in the first weekend and it yielded a good tenant over the last year who is still there and who I have heard from once. Second in Rhodes Ranch was crazy, priced it about $30 under market and the phone was ringing off the hook. I had five applications within the first week and finally got one acceptable to me I think it was 6 days after listing. I just got off the phone with him and some lady in the house at the moment was begging me to consider her, but I was happy with the tenant's bio and credit. He's been great in the 4 months so far, sending in his check two weeks before rent's due!

But just be prepared for some horrendous credit applications in the current conditions. These people must think landlords are desperate. I had one applicant who had been sent to collections by his apartment and all utilities three months prior and it didn't appear to be cleared up yet, but that didn't stop him from applying for a house with rent $400 higher than the apartment.
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Old 09-01-2010, 06:27 AM
 
2,038 posts, read 3,648,425 times
Reputation: 3165
Quote:
Originally Posted by mricu View Post
For all you landlord that own property and are renting them out, how are you finding the ability to find renters in our down economy?

How long, on average does it take to find a renter for your units in LV?
Are there large turnover rates in your units when they are rented?

Would you say it's better to get a long term rental in Vegas or a own vacation rental in this economy?

I'm thinking of purchasing an investment property, but not sure how long it would stay empty. With a vacation rental, I can charge quite a bit more, and also have a place for myself when I travel to Vegas. As well, I'm reasonably sure the vacation rental would be rented most of the year as there really isn't a low season in Vegas .... or is there?

Any thoughts are appreciated.
I'm not sure if income production or a vacation home is your primary priority, but it can be a huge challenge to have a property serve both needs. Also, being a long distance landlord is never a good idea.

Recent legislation was passed designed to curb people from renting "party houses." If I understand correctly, you can no longer rent your property in Clark County for less than 30 days unless it is a location with on-site property management, which will end up costing you even more.

Your ROI for a year can also get killed by a bad AC repair, or other HOA assessment, and two months of unoccupancy if you are financing the place. And don't even think about appreciation for a few more years IMO. Make sure you have quite a bit in reserves (9 months worth should work for most contingencies) and that this is a long term investment.

And if you are in a position to buy the place with cash, would having it wrapped up in a property present an opportunity cost for you?

I prefer REIT's at this point. Much less hassle. Either that or perhaps you might be better off being a local landlord in San Diego and using your ROI for a few blowout weekends in Vegas.

Last edited by Spraynard Kruger; 09-01-2010 at 06:52 AM..
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Old 09-02-2010, 12:12 AM
 
Location: The North
4,962 posts, read 8,675,201 times
Reputation: 3831
To clarify, you can't rent a house for under 30 days unless you have a lodging license. Has nothing to do with on-site property management. They did it to protect the hotel industry and more specifically to benefit the long-term stay places who are run by a lot of very politically connected people.

I think there is a huge opportunity for income rentals right now, but financing is tough and one has to expect some bumps in the road. That being said rents are relatively high in Vegas and haven't come down all that much even in the bad economy, if you can reset at today's house prices and get financed its a screaming deal with ROI's very high with of course some concerns about vacancies and credit quality of clients.
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Old 09-02-2010, 12:00 PM
 
1,347 posts, read 2,111,241 times
Reputation: 483
Quote:
Originally Posted by Willy702 View Post
I think there is a huge opportunity for income rentals right now, but financing is tough and one has to expect some bumps in the road. That being said rents are relatively high in Vegas and haven't come down all that much even in the bad economy, if you can reset at today's house prices and get financed its a screaming deal with ROI's very high with of course some concerns about vacancies and credit quality of clients.
When I rented my place out last summer I got a call from the PM who was pitching me the profile of a potential tenant he had lined up - a recently divorced mom with two kids. I had a few questions for him, one of which was "what does her credit look like?" He replied, "her credit is horrible...but everyone's credit is horrible in Vegas". lol.

That said, her references checked out well and she's been in the place for over a year now without a single late. Knock on wood.
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