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Generally speaking how much would you expect a house to rent for daily versus weekly versus monthly? For example I see a lot of houses rent for lets say $500 daily and $3,500 weekly (no discount). But I see a lot of variations with regard to their monthly rate.
So $3,500 times 4.3 weeks (30 days) time 0.65 = $9,782 month?
And when you see monthly rates on Zillow that are based on long term leases, what kind of monthly price multiple might you expect during the summer? Double the Zillow monthly rate?
I'm gonna start doing the VRBO thing in January. Not sure what a "normal" vacancy rate is for a high end home that would rent for about $3,500 a week.
working up from weekly rate, the formula in my example would be
[Month/30] x 7 x 1.35 = Week. For $3500/wk, the monthly rent would be $11111.
But don't stick strictly to a formula. You will have to look at the comps, if any, and see if you get any bites. If you don't get any, you'll adjust lower. Trial and error.
There is no normal vacancy rate. It is specific to your home, and varies with price and demand.
Since you have never rented out, you can sort of get an idea by seeing how long other homes sit on the market, and compare to those homes that rent quickly.
There is no normal vacancy rate. It is specific to your home, and varies with price and demand.
Since you have never rented out, you can sort of get an idea by seeing how long other homes sit on the market, and compare to those homes that rent quickly.
A knowledgeable realtor in my area told me that I have perhaps about a 50/50 chance of renting my Los Angeles (west side) place for 3 months during the summer. Are 1 or 2 month rentals more common in the Summer home business?
How soon in advance to people start booking summer home rentals? 90 days ahead of move-in?
It's a risk for me because I have about $5,000 in beds, bedding, towels, furniture and other stuff that I need to buy.
Look in your area for what vacation homes rent for. That's your competition. There is no formula. Look at the comps and what you offer that they don't. Or what do they offer you don't.
I have a friend who rents three beach houses. He gets anywhere from 2-4k a week depending on what week. Obviously big holiday summer weeks and summertime is more while winter time is less. But he's pretty much booked for about 6 months in advance. He gives 10% discount for anything two weeks or more.
He's never had a issue. He used to take 1k deposit, But he doesn't take it if you're a repeat customer who left the property in good shape.
Look in your area for what vacation homes rent for. That's your competition. There is no formula. Look at the comps and what you offer that they don't. Or what do they offer you don't.
I have a friend who rents three beach houses. He gets anywhere from 2-4k a week depending on what week. Obviously big holiday summer weeks and summertime is more while winter time is less. But he's pretty much booked for about 6 months in advance. He gives 10% discount for anything two weeks or more.
He's never had a issue. He used to take 1k deposit, But he doesn't take it if you're a repeat customer who left the property in good shape.
This real estate expert told me that houses that are walking distance to the beach, walking distance to stores, and/or that have a great view are in high demand. I'd have a much easier time if I had one of those homes. That's why he thinks I have only a 50/50 shot at a 3 month rental. Maybe I have a better chance with shorter terms.
What are his most in demand rental durations for these beach houses? 1 week? 2 weeks? 30 days? More?
This real estate expert told me that houses that are walking distance to the beach, walking distance to stores, and/or that have a great view are in high demand. I'd have a much easier time if I had one of those homes. That's why he thinks I have only a 50/50 shot at a 3 month rental. Maybe I have a better chance with shorter terms.
What are his most in demand rental durations for these beach houses? 1 week? 2 weeks? 30 days? More?
He turns over weekly during the summer. His rentals are all set up that in the summer they are weekly. He's hever had anyone rent for more than one week in summer
He has one rental that's 9 month lease then it goes weekly during June July August (summer). In fact a lot of rentals there are like that.
Another goes weekly except one customer takes it for 5 months in winter Nov Dec Jan Feb March and the guy has been doing it for 20 years. He gives him a good deal.
One stays available ONLY weekly but it's on the beach and it's premium pricing. But he has premium service
He basically took the time to see what people needed and how to set up to get maximum cashflow for the right times. The only time he goes a real lease is in the "slow" season and that's just good cashflow. Monthly lease run about $2400 a month. When summer hits it runs 2400-4000 a week depending on the property and the timeline
It would seem to me that summer rentals would tend to be more of a 1 or 2 week deal; you'd get the month or longer types in the winter with snowbirds.
When I'm looking for monthly rentals and I see the owner is not giving any sort of discount over a nightly or weekly fee, i.e., if they charge $100 a night and $3,000 a month, I usually pass on those. i feel I should get something in return for guaranteeing the unit will be rented for the entire month.
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