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If you had trouble renting out an apartment, would you consider short term tenants? I don't know if it's the time of year, but I have had an empty unit for way longer than usual, and someone has approached me about renting it short-term until his relocated job calls him to start. He said it could be anywhere from 2 weeks to 5 months which is frustrating for him.
It's not a furnished unit. I'm thinking if I do this, I need to receive more upfront than first and sec deposit.
If you had trouble renting out an apartment, would you consider short term tenants? I don't know if it's the time of year, but I have had an empty unit for way longer than usual, and someone has approached me about renting it short-term until his relocated job calls him to start. He said it could be anywhere from 2 weeks to 5 months which is frustrating for him.
It's not a furnished unit. I'm thinking if I do this, I need to receive more upfront than first and sec deposit.
Advice?
It costs just as much to prep a unit for a 2 week tenant as it does for a 20 year tenant. No way I'd take on a short-term tenant and give them a long-term rent. Double the rent (or more) to cover the uncertainty, and collect a fat deposit in case the tenant leaves the place damaged.. (gonna be hard to collect on someone who no longer lives in the area).
A few places around here do short-term rentals. Zippyman is correct. The rent is substantially higher although not double. A $1000 a month unit usually gets $1600. I'm not sure about the deposits, but I'm sure they are comparable.
These are usually for people who are in the process of buying/building a house, moving because of work, etc. A lot of time work is actually paying the bill.
It costs just as much to prep a unit for a 2 week tenant as it does for a 20 year tenant. No way I'd take on a short-term tenant and give them a long-term rent. Double the rent (or more) to cover the uncertainty, and collect a fat deposit in case the tenant leaves the place damaged.. (gonna be hard to collect on someone who no longer lives in the area).
I totally agree. I was offered double my monthly 1 year lease payment for 3 month lease (applicant was house hunting) and I turned them down. Moving in and moving out tenants (I rent houses) and Realtor fees make it untenable (no pun intended) to rent for less than a year. They eventually came back and signed a 1 year lease, ended up living there over 2 years, just moved late last year after buying the home they sought.
My minimum terms are 1 year lease. I prefer 2 year leases which guarantee tenant no rent increase after one year and guarantee me I won't have to go through the hassle of finding a replacement tenant.
For an apartment lease you would be lucky to find a 6 month lease in many areas, and in big cities probably 1 year. Just bite the bullet and face the fact the price of admission is a 1 year lease.
Yes, if you are having trouble leasing the property due to time of year, then lease it to a highly qualified applicant for 6 months. This re-sets the lease beginning date for your next tenant, to Spring when rental rates are higher and more people are moving. You will still make more, even with make ready and agent commission, than if the house continues to sit vacant.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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OP,you can see it's going to be tough. Posters here are mentioning the very reasons why they don't rent short term that I mentioned. If they do rent out short term , unless its higher end furnished corporate, its under duress of not being able to rent out their place. Quite often this will lead to problematic tenants so most landlords in their right mind will avoid this as evidenced by the other posters here.
The holidays are typically slower to rent because everyone is so busy with holidays and the weather slows things down a bit if it is harsh.
Wait for a few months, things should get better. It's better to be vacant for a few months an lose a small amount now than to get a nightmare tenant that costs you more in the long run.
Yes, if you are having trouble leasing the property due to time of year, then lease it to a highly qualified applicant for 6 months. This re-sets the lease beginning date for your next tenant, to Spring when rental rates are higher and more people are moving. You will still make more, even with make ready and agent commission, than if the house continues to sit vacant.
Great advice from a Realtor. You get paid the same whether it's a 3 month tenant or a 3 year tenant.
My experience goes against the grain of your entire post. I have had no problems renting during any month of the year. I have no motivation to rent until a better season, there isn't any. (Depends on market.)
Every time I re-rent I have to do a move-out checklist for the old tenant, face 1-2 months of vacancy with a mortgage still to be paid, Realtor commissions for finding me a tenant, cleaning expenses and fixing small stuff that needs to be perfect for next tenant. Hassles with contractors if old tenant put nails/screws in walls to hang pictures (I take it out of their deposit but it's still a hassle).
Austin, try being a landlord for a while instead of a Realtor and you'll find out being a landlord and re-renting units is no fun.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by Austin-HomeGirl
Yes, if you are having trouble leasing the property due to time of year, then lease it to a highly qualified applicant for 6 months. This re-sets the lease beginning date for your next tenant, to Spring when rental rates are higher and more people are moving. You will still make more, even with make ready and agent commission, than if the house continues to sit vacant.
It's quite possible they won't make more. Love hound spelled out why and I agree although I'm not sure about realtor bias and commission. In ca we mostly don't use them for rentals, but the costs of turnover versus waiting a few months of missed rent may be quite high.
As far as setting the lease to end in spring, I usually did a 14 or 15 month lease if it was signed in nov or dec so it would end or renew at spring anyways.
....... would you consider short term tenants? ........
I wouldn't. There are a few tenants who leave a unit rent ready, but they are rare, so, no matter how long the tenancy, I am going to have to go in and clean and repair. If you aren't lucky, a slob of a short term tenant could result in extensive expense to ready the unit again.
Plus, after the short term renter is out, you have another vacancy and you are still looking for a tenant, just two months later. You have to clean up again and you have to start showing and interviewing again. No thanks.
The landlords who specialize in short term rentals charge substantially higher rent. That is to compensate for more vacant time and for more extensive repairs and cleaning.
I experimented with it one time and that one happened to work out. A lot has to do with the type of rental. I had a cheap one with a nice big garage and all the calls were from people moving to the area, looking for a place that was cheaper than a motel while they unloaded and looked around.
So I placed an ad that said "Moving to the area? Short term rental" and I priced it 33% higher than the market rate with a note that if they stayed over 6 months the rent would drop. I got a lot of calls and rented it to someone who screened well and who made a special trip to look before they signed the agreement. She happened to stay for several years and bought the house from me and is still there.
Short term rentals don't usually work like that. I consider myself to be exceptionally lucky with that tenant.
I get lots of calls from people who have sold a house and need a place to stay while they find something else to buy. I don't want to deal with it, so I turn them down.
As far as setting the lease to end in spring, I usually did a 14 or 15 month lease if it was signed in nov or dec so it would end or renew at spring anyways.
That's a GREAT idea that never occurred to me, but for a different reason. I'm in the process of phasing out my rental business, my CPA will let me sell only one house per year, and adding a few months would allow me to control which year the lease ends in, which would also be the year I sell the house. I'm going to have to re-rent at least 1-2 properties and I'll use this strategy to gain control over which year the property sells in. Thanks!
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