Author Topic: Drawbacks to a 5 Bed SFH Rental  (Read 788 times)

kenmoremmm

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Drawbacks to a 5 Bed SFH Rental
« on: September 20, 2018, 10:50:52 AM »
We found a good deal on a 5-bed SFH near a military base in OKC. The price and rents are right for us to pull the trigger, but I am now concerned about having a 5 bed unit. It was previously 3 bed with a garage, but the current owner converted the garage to 2 additional bedrooms. I believe their goal in doing this was to attract higher Section 8 rental prices.

So, is there an inherent drawback to this many bedrooms? I could see it attracting larger families which, thereby implies more chaos (generally).

Another Reader

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Re: Drawbacks to a 5 Bed SFH Rental
« Reply #1 on: September 20, 2018, 11:58:45 AM »
Drawbacks:  No garage and Section 8.  Have you done Section 8 rentals before?  Not my cup of tea.

YttriumNitrate

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Re: Drawbacks to a 5 Bed SFH Rental
« Reply #2 on: September 20, 2018, 12:06:36 PM »
I recently upgraded my 3 bed SFH rental to a 4 bed SFH by installing an egress window. My experience was that following the upgrade (to both the house and rental price) there was slightly less interest in the property, but not by much. I did notice was that there was a lot more interest from families with three generations living under one roof, and that offset most of the loss in interest from other groups.

Blindsquirrel

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Re: Drawbacks to a 5 Bed SFH Rental
« Reply #3 on: September 23, 2018, 09:06:20 AM »
Positive= not very many 5 bedroom houses for rent anywhere, once rented folks tend to stay a long time.
negative- not that many families need that big a house.

frugalone

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Re: Drawbacks to a 5 Bed SFH Rental
« Reply #4 on: September 23, 2018, 10:25:02 AM »
How many bathrooms?  I have a few large 4 bedroom SFHs and they bring in great rent.  Most people go crazy over a large home as they are not available in most searches.  Make sure to check out the family situation and make it clear the house is A: Not a flop house for homeless family and friends and B: Not an AirBnB C: IF they didn't understand A or B make sure the lease specifically states subletting is a violation of the lease. 
« Last Edit: September 23, 2018, 11:31:57 AM by frugalone »

Alanwatts

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Re: Drawbacks to a 5 Bed SFH Rental
« Reply #5 on: September 24, 2018, 01:44:54 AM »
Yes!! Make sure to check out the family situation.

Villanelle

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Re: Drawbacks to a 5 Bed SFH Rental
« Reply #6 on: September 24, 2018, 02:58:37 AM »
I would want to put limits (assuming it was legal to do so) in the lease about both subletting and roommates.  You do not want 5 single airmen renting your place as roommates.  If legal, include some kind of limit on houseguests. 

Also, assuming your primary rental pool is military (and maybe it isn't) you can check the housing allowance for the area.  (Google "BAH 2018 calculator. Enter the zip code of the base and then you can search different ranks--use the "with dependents" rate.)  Most people want to spend either at or under BAH. For families that large, it is most likely going to be senior officers or senior enlisted, so I'd look at the BAH for an O-4 and an E-7. If the rent is way off from that, you might have trouble finding a military tenant.  Also know that most military families don't stay in an area more than 2-3 years, sometimes less, and then can legally break a lease with 30 days notice and a set of orders.  Again, not catastrophic, but something to keep in mind.  (I assumed that because you mention the base, you were planning to target military families.)

 However, most families that large are probably going to want a garage, especially in a place that gets winters, so I'd be afraid the place would be hard to rent to anyone but someone with a very large family desperate to find a place.  And there's not anything inherently wrong with that, but it's a much smaller rental pool. 

Of course, if you want to go the section 8 route, feel free.  I did it and did not have a good experience, though it wasn't the worse.  (Tenant just took bad care of the property so it needed a ton of cleaning and small repairs.)