Author Topic: Weekly Rentals  (Read 1874 times)

Overseas Stache

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Weekly Rentals
« on: November 27, 2014, 01:54:32 AM »
During my searches for properties to invest in I have seen a couple that rent the units out by the week. It seems like this would probably be more hassle than its worth, and if a management company was used I'm sure it would cost more than the standard 10%. Does anyone have any examples of weekly rentals that they have that have either worked or completely became a headache?

Overseas Stache

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Re: Weekly Rentals
« Reply #1 on: November 27, 2014, 01:57:16 AM »
To clarify i'm talking about multi-unit residences. Not vacation homes or Air BnB rentals.

GrayGhost

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Re: Weekly Rentals
« Reply #2 on: November 27, 2014, 12:00:14 PM »
I looked into a condo that's in a complex that allows for weekly rentals. With all expenses said and done, ROI was similar to what you'd get in a 1% rule SFH, but naturally you have to advertise, coordinate cleaning, and all that other garbage... I say forget it, unless ROI is high enough to make it worth the trouble of more active management. And there are properties like that--vacation rentals and such--but demand a high ROI for these troublesome sorts of investments, as they're really jobs AND investments, not purely passive at all.

totoro

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Re: Weekly Rentals
« Reply #3 on: November 27, 2014, 12:04:58 PM »
To clarify i'm talking about multi-unit residences. Not vacation homes or Air BnB rentals.

What is the difference between a multi-unit residence rented out by the week and an Airbnb?  I would expect that the multi-unit would be run exactly like a weekly vacation rental or Airbnb unit(s) and similar analysis applies except you might be able to access management services more easily.

Overseas Stache

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Re: Weekly Rentals
« Reply #4 on: November 27, 2014, 02:28:19 PM »
To clarify i'm talking about multi-unit residences. Not vacation homes or Air BnB rentals.

What is the difference between a multi-unit residence rented out by the week and an Airbnb?  I would expect that the multi-unit would be run exactly like a weekly vacation rental or Airbnb unit(s) and similar analysis applies except you might be able to access management services more easily.

Maybe I should further clarify Lol. These units are in low income areas of a city not a vacation place and not Air BnB quality. Mostly low income renters who pay weekly but are often long term renters. sort of like people who pay weekly to stay at a hotel but instead these are 1 bedroom apts.

Rural

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Re: Weekly Rentals
« Reply #5 on: November 27, 2014, 02:36:34 PM »
There's a fair bit of that kind of rental around here because the factories pay weekly. I don't know if I'd want to get into it because of turnover, frankly, but there are sometimes steady tenants with jobs at the factories who stay for years, so it varies. The majority of weekly rentals here are trailers, but there are some apartments and a few duplexes.

totoro

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Re: Weekly Rentals
« Reply #6 on: November 27, 2014, 02:49:55 PM »
I wouldn't do it just because it doesn't appeal to me and investing is not a purely financial decision for me.    You need to get the numbers and analyze the turnover rates.  Find someone who is doing this from a distance and ask questions there - might be someone on this board.  I don't have that type of experience.