Author Topic: Short Term Furnished Rentals  (Read 2864 times)

AlmostIndependent

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Short Term Furnished Rentals
« on: July 25, 2014, 09:48:37 PM »
I have a lot of experience with unfurnished long-term rentals. I would like to travel for a while and want to rent out my house (preferably furnished so I don't have to move all my stuff) while I am gone.

I'm sure someone out there has done this; where should I begin? What resources do I need to start looking at?

totoro

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Re: Short Term Furnished Rentals
« Reply #1 on: July 25, 2014, 10:49:52 PM »
You should take out any items you would care about being lost or damaged and inventory the contents.   You need to have a written agreement (the same as with your unfurnished - just modify_ which provides liability for damage to furnishings and should have the inventory attached.  Look at what other furnished rentals are going for and post it for rent at or below this price. It is a bit of work to set up at first but nowhere near moving and storing your stuff.

SnpKraklePhyz

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Re: Short Term Furnished Rentals
« Reply #2 on: July 26, 2014, 05:25:47 AM »
I did this recently.  I put a lock on the basement door and put anything "valuable" in the basement.  I don't have much valuable - just family stuff.  I took my jewelry with me. It has worked out well for me but the rug took a beating.  I'm hoping I can get it clean with the steam cleaner.

I found tenants on CL and vetted them myself first.

CanuckExpat

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Re: Short Term Furnished Rentals
« Reply #3 on: July 26, 2014, 11:04:53 AM »

AlmostIndependent

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Re: Short Term Furnished Rentals
« Reply #4 on: July 26, 2014, 11:29:00 AM »
Thanks everyone! This is a good start. It seems like a little more work but with the potential to make a decent amount of money.

escolegrove

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Re: Short Term Furnished Rentals
« Reply #5 on: July 26, 2014, 09:28:26 PM »
This is the next frontier we plan on entering when we are stationed in an "vacation" area again. I plan on writing in the ad that the garage is not for use OR buying a cheap trailor to keep all of our items in. I am leaning towards a trailer because that way the entire house can be rented.

malacca

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Re: Short Term Furnished Rentals
« Reply #6 on: July 28, 2014, 11:25:19 PM »
My last three homes I live in, I turned into fully furnished rentals. Just like you, I didn't want the hassles of getting rid of everything - or putting it in storage. I also have 4 other fully furnished rentals. I am fully in the furnished rental business.

I get great returns. I am netting double what I would if I rented it unfurnished.

I also find that the tenants I get are much better. 99% are home owners who are traveling on business. They all have good jobs.

Most rent from 1 to 6 months.

All utilities are included but with caps. All utilities stay in my name.

There are some websites that cater to this. VRBO.com and Homeaway.com (same company). About $300 for a listing for a year. Then there is Craigslist - also good.

I first vet people on their story. If it is some long drawn out saga, I say no.

Rules:

1. Tenant must have a place to go back to - own or rent. Otherwise they can just squat in your place and you are stuck with the bills and no rent. Rental laws don't cover fully furnished places well.

2. Must have a real reason to want a furnished place. Divorce isn't one of them.

3. No pets (unless you had them). Ever. Not even a "small house-trained blah blah". People will say anything when desperate.

4. No more than 30% of income to rent. Remember, they have another mortgage or rent back home.

5. Very cautious on locals wanting to rent. Why would someone want a fully furnished place? They could just go buy some used furniture and rent a place more cheaply. I do rent to people who sold their home too quickly and need a bridge while shopping. Or people who are building a home.

6. Get several deposits. One for damage. One for utilities. And get the last month's rent as well.

7. For rentals 3 months or less get all the rent up front (this is customary in the industry). If they can't come up with that amount they have no business renting a fully furnished place.

8. No large families. Kids are OK - one or two. Any more and the parents can't watch them. They will do all sorts of shit to your property - stuff you don't realize until they are long gone.

9. Go the extra mile to please your tenants. They are spending a fortune to rent - so a few hundred dollars will go a long way in how they treat your property.

10. Depersonalize the house - get rid of everything "you".

FYI:  Air BnB is a great service but not for longer term rentals.

You can store your stuff in the attack & garage.

I also figure some of the furniture will need to be chucked out. And the carpet will need to be replaced after 3 or 4 years. It helps if you understand this from the get go.

Let me know if you have any questions.

AlmostIndependent

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Re: Short Term Furnished Rentals
« Reply #7 on: July 29, 2014, 02:47:45 PM »
malacca, that is great info. Just what I was looking for. Why do you say rental laws don't cover fully furnished places well? What is the difference legally?

totoro

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Re: Short Term Furnished Rentals
« Reply #8 on: July 29, 2014, 02:54:55 PM »
You'd have to check your state. 

Where I live the residential tenancy laws do cover furnished rentals. 

Seems like they do in Alaska too:

http://www.law.state.ak.us/pdf/consumer/landlordtenant09_web.pdf 

totoro

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Re: Short Term Furnished Rentals
« Reply #9 on: July 29, 2014, 03:30:28 PM »
What is not covered are stays of less than 30 days.  Those fall under contract law so have a written agreement.