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My understanding is that rental listings on Zillow are based on 12 month leases.
I'm looking to rent a furnished home for no more than 6 to 9 months. But for a 6 month lease, how much more would you expect a place to rent for? 3%? 5%? 7%? 10%? I know you realtors have a rule of thumb as a general starting point.
And how much extra does a furnished house command in rent rate?
I'm in Los Angeles on the West side. At 12 months my place would rent for approximately $6,500.
You should contact a local agent as all of these questions are area specific. I go up between 10% to 30% on 9/6/3/1 month options because I want tenants to sign a year lease every year.
You should contact a local agent as all of these questions are area specific. I go up between 10% to 30% on 9/6/3/1 month options because I want tenants to sign a year lease every year.
So if a home rents for $9,000 a month then it might rent for $8,150 for 3 months and $7,400 for 6 months? That's 10% increases from 6 mo to 3 mo to 1 month.
I have a real good idea how much my furnished place rents for 1 month on VRBO. It's hard to tell how much a furnished house rents at 3 and 6 months because all of the listings in my area on Zillow are 12 month and unfurnished.
Best bet is to list it at a price point you think is fair and see what response you get. Figure out what you are comfortable with for a 12 month lease and go from there. If you think a 12 month is $6,500 then on your listing just list the rates. Since you are talking about a vacation rental so you aren't going to get a premium for monthly vs 6 month like I will on a single family home.
Best bet is to list it at a price point you think is fair and see what response you get. Figure out what you are comfortable with for a 12 month lease and go from there. If you think a 12 month is $6,500 then on your listing just list the rates. Since you are talking about a vacation rental so you aren't going to get a premium for monthly vs 6 month like I will on a single family home.
The problem with my area is that there's low demand for my high end, more away-from-the-city place. There's really only about 4 or 5 good comps like my place in the entire city here. Two of these have been listed for 3 to 6 months. None of them are readily furnished. At least if someone wants a readily furnished 6 month I'm maybe the only game in town.
The problem with my area is that there's low demand for my high end, more away-from-the-city place. There's really only about 4 or 5 good comps like my place in the entire city here. Two of these have been listed for 3 to 6 months. None of them are readily furnished. At least if someone wants a readily furnished 6 month I'm maybe the only game in town.
Sounds like you can't ask any premium and your comps are also over market value.
I'm not understanding your math, but look at it this way...when a unit turns over, it generally costs the owner/landlord 2 months rent to turn it over. One month to do the work and get it rented, one month's worth of rent in work - carpet cleaning, painting, etc.
So, you figure in the loss of 2 month's rent per 12 months. You have to compete with that.
I hope that made sense.
One thing about CA units that are furnished - landlords can ask 3 times the monthly rent in deposits for a furnished unit. And from a landlord's perspective, most renters will want some of the furniture removed, so there's a cost in moving stuff out and storing it, etc.
If you're trying to figure out how to negotiate, keep those things in mind. A landlord is in the business to turn a profit, and dealing with tenants and showing/screening, etc., is a pain. So, you have to make an offer that is attractive, if you're the tenant.
If you're the landlord, figure all of the above into your costs. Short term rentals are in high demand, but you need to know how to turn a profit on them. They're a pain in the rear, so your pricing should compensate for that.
What I always told them was that if they don't like what I have to offer, they're welcome to rent at the local Extended Stay Hotel.
People looking for short term housing, are trying to find a cheaper deal than the local extended stay options. Know that going in. Why would I rent to you at a price that will lose the owner money? Sorry, hon, but there ain't no way to get around the fact that short term housing is expensive. That's what I'd "nicely" say to people trying to get me to rent at a 12 month rate, for a 3 month rental. Nope. Ain't gonna happen.
So if a home rents for $9,000 a month then it might rent for $8,150 for 3 months and $7,400 for 6 months? That's 10% increases from 6 mo to 3 mo to 1 month.
I have a real good idea how much my furnished place rents for 1 month on VRBO. It's hard to tell how much a furnished house rents at 3 and 6 months because all of the listings in my area on Zillow are 12 month and unfurnished.
You can't use VRBO as a guide. It's a different type of rental. You're trying to translate daily weekly biweekly monthly vacation rental to a regular lease 6/12 month rental.
Quote:
Originally Posted by Big-Bucks
The problem with my area is that there's low demand for my high end, more away-from-the-city place. There's really only about 4 or 5 good comps like my place in the entire city here. Two of these have been listed for 3 to 6 months. None of them are readily furnished. At least if someone wants a readily furnished 6 month I'm maybe the only game in town.
Those other two rentals that are languishing may be too high priced. And you may have a hard time finding someone who wants a furnished 6 month lease at that price in a low demand for rental area. If you can wait around till that's tenant comes along great. It might take you 6 months to find him/her because you're looking for a needle in a haystack.
You can't use VRBO as a guide. It's a different type of rental. You're trying to translate daily weekly biweekly monthly vacation rental to a regular lease 6/12 month rental.
And basedon other threads, it's not being regularly rented on VRBO either.
Quote:
Originally Posted by Electrician4you
Those other two rentals that are languishing may be too high priced. And you may have a hard time finding someone who wants a furnished 6 month lease at that price in a low demand for rental area. If you can wait around till that's tenant comes along great. It might take you 6 months to find him/her because you're looking for a needle in a haystack.
I don't mind waiting. It is a low demand area. I'm not gonna give the place away so I'll price as low as I can reasonably go.
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