Author Topic: renting out your home for $2k/day  (Read 8678 times)

sol

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renting out your home for $2k/day
« on: December 04, 2014, 11:37:09 PM »
My house is located about a mile away from a major tourist draw that is going to bring many more people here than can possibly find hotel rooms.  There is suddenly a secondary market in people renting out their private homes to out-of-towners for very short (like days) durations.  I'm tempted.

On the one hand, my house is mine and it feels weird to let strangers stay in it.  On the other hand, if they're going to pay me $2,000 per day and rent for two weeks (not unreasonable), there are very few things they could do to it that I couldn't fix with their payment and still profit.  I guess they could break all of my windows and destroy all my carpets?

I'm seriously considering just taking the family on a camping vacation and trying to cash in.  Has anyone else done anything like this before?

UnleashHell

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Re: renting out your home for $2k/day
« Reply #1 on: December 05, 2014, 03:50:31 AM »
I have not. But I have a friend of mine that had a nice apartment near Wimbledon and would let it to a sports management company for the Tennis for two weeks each summer. He made more than his monthly salary for that rental. He now lives in a very nice house with the deposit paid for by those rentals..

kpd905

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Re: renting out your home for $2k/day
« Reply #2 on: December 05, 2014, 04:36:54 AM »
I'd sleep in my car to get $2k/day, indefinitely.

Another Reader

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Re: renting out your home for $2k/day
« Reply #3 on: December 05, 2014, 04:40:49 AM »
I know people in Phoenix that did this for the last Superbowl there and plan to do it for the next one.  Most did well, a couple went unrented (too far away), and one had damage that about equaled the net rent.  I'm going to pass on that idea.

brooklynguy

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Re: renting out your home for $2k/day
« Reply #4 on: December 05, 2014, 05:17:43 AM »
I'm also in a position to profit handsomely from short term rentals, but for now they are (in most cases) technically illegal in NY.  Airbnb is fighting to change that.

Doing it on a one-off (rather than recurring) basis as you are contemplating greatly reduces the risk and the hassle factor (and, of course, the reward).  Have you looked into airbnb's policies for insuring against the type of risk you are concerned about?  I know they have some consumer protections in place but never looked into the details (maybe they only apply on the tenant side and not to the landlord?).  Also, if you are really going to do this, before you do so find out how it will impact your homeowners insurance policy (e.g., if paying third party tenants burn your house down, will your policy's coverage apply?).

DecD

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Re: renting out your home for $2k/day
« Reply #5 on: December 05, 2014, 05:26:31 AM »
Some friends in Austin have done it for South by Southwest and it worked out well for them.

Ricky

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Re: renting out your home for $2k/day
« Reply #6 on: December 05, 2014, 05:57:03 AM »
List it on Airbnb, VRBO, and Craigslist. The good news is if you rent for less than 15 days, you pay NO taxes on it. There's another incentive.

Mr. Frugalwoods

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Re: renting out your home for $2k/day
« Reply #7 on: December 05, 2014, 06:01:27 AM »
I'd love to hear folk's stories on this as well.

We're in Cambridge, MA.  So 3 times a year there are tons more people than hotel rooms:  Harvard Graduation, MIT Graduation, and the Head of the Charles Regatta.

We've tossed around the idea of renting our house for at least one of these, if not all three.  They all make the city an absolute zoo, so it would be nice to get out of town and even nicer to get paid for it!

But then there's the idea of "renter-proofing" the house.  Do we need to clean out our closet?  Our dresser?  Buy new pillows?  We keep the house really clean anyway, so cleanliness isn't an added burden, but there are a lot of practical questions that have kept us from actually pulling the trigger.

OutBy40

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Re: renting out your home for $2k/day
« Reply #8 on: December 05, 2014, 06:10:39 AM »
First, you may get more responses if you post this over in the Renting and Landlording section of the forums (you may have cross-posted, not sure, didn't look). 

I personally haven't done this, but what you're basically doing is turning your home into a vacation home.  In the right market this is definitely do-able, especially if there are events or anything special that draws a bunch of people into your area for short times during the year (or a season, depending on where your house is).  These homes tend to be a little nicer, though, to demand the $2k (or there abouts) rent.

Cromacster

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Re: renting out your home for $2k/day
« Reply #9 on: December 05, 2014, 06:11:20 AM »
My grandparents lived on a good golf course in Florida that hosted a PGA tournament every couple of years.  They would typically rent their house to spectators.  One year a high level golfer rented their house and he paid for a few upgrades to the house on top of paying a ridiculous amount in rent.  I never heard any horror stories from their end.  In the end I'd imagine it would depend on the crowd the event is drawing.  I'm stereotyping but I would expect golf fans to be more respectable than football fans.  So I would factor that into my consideration.

goatmom

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Re: renting out your home for $2k/day
« Reply #10 on: December 05, 2014, 06:18:19 AM »
Why is it illegal in NY?  What is the law about taxes and number of days rented?  I would do it, DH too risk averse.

theconcierge

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Re: renting out your home for $2k/day
« Reply #11 on: December 05, 2014, 06:19:55 AM »
I'm also in a position to profit handsomely from short term rentals, but for now they are (in most cases) technically illegal in NY.  Airbnb is fighting to change that.


Illegal in New York? Hoping to come over from Australia to run the marathon and was planing on looking at short term rentals

Sent from my iPad using Tapatalk HD

goatmom

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Re: renting out your home for $2k/day
« Reply #12 on: December 05, 2014, 06:20:55 AM »
Why is it illegal in NY?  What is the law about taxes and number of days rented?  I would do it, DH too risk averse.

2lazy2retire

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Re: renting out your home for $2k/day
« Reply #13 on: December 05, 2014, 06:34:44 AM »
My house is located about a mile away from a major tourist draw that is going to bring many more people here than can possibly find hotel rooms.  There is suddenly a secondary market in people renting out their private homes to out-of-towners for very short (like days) durations.  I'm tempted.

On the one hand, my house is mine and it feels weird to let strangers stay in it.  On the other hand, if they're going to pay me $2,000 per day and rent for two weeks (not unreasonable), there are very few things they could do to it that I couldn't fix with their payment and still profit.  I guess they could break all of my windows and destroy all my carpets?

I'm seriously considering just taking the family on a camping vacation and trying to cash in.  Has anyone else done anything like this before?

I suspect this is a one off event type scenario for a couple of weeks - golf open or some such thing?, then the risk assessment would be based on the type of people expected to attend such an event, not been judgemental,  but if an open air rock music festival is in town then the risk goes up as opposed to a horse show for example. Whatever you decide just retain a large deposit to cover damage.

SnackDog

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Re: renting out your home for $2k/day
« Reply #14 on: December 05, 2014, 06:59:18 AM »
Have a chat with your insurer to make sure they are on board with the idea. Otherwise, if the renters manage to burn the place down your insurer could claim you didn't have the right rental policy in place.   Some insurers do not even offer a policy for "vacation" rentals.

RunHappy

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Re: renting out your home for $2k/day
« Reply #15 on: December 05, 2014, 08:07:51 AM »
NYC has a hotel tax.  They want to discourage people from turning their apartments/houses into de facto hotels and skirting the tax.

centwise

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Re: renting out your home for $2k/day
« Reply #16 on: December 05, 2014, 08:24:19 AM »
I would totally do this, if I had the opportunity! If I were in your position, I would go through the house and box up any items that I would worry about (plus private papers, etc.), and then try NOT to worry excessively about possible damage to the rest. Remember you can ask for a damage deposit, too. It probably helps to be Mustachian, in that your house is probably not full of expensive and breakable tchotchkes.

I know a Canadian couple who retired to Mexico. During peak tourist times, including the Christmas holidays, they always plan to visit their children/grandchildren while renting out the house in Mexico. It's very efficient and profitable for them.

Numbers Man

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Re: renting out your home for $2k/day
« Reply #17 on: December 05, 2014, 08:36:01 AM »
$2,000 per day is a lot of coin for 2 weeks. Get a good attorney to write up your lease, a hefty deposit, a good management company and have a talk with your insurance agent.

I personally pass on this when the Super Bowl, College Bowl Games and the PGA is in town. I've had offers of $2,500 a week, but $2,000 a day is making me salivate.

surfhb

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Re: renting out your home for $2k/day
« Reply #18 on: December 05, 2014, 10:38:31 AM »
Which event?

The_path_less_taken

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Re: renting out your home for $2k/day
« Reply #19 on: December 05, 2014, 10:56:27 AM »
I would totally do this, if I had the opportunity! If I were in your position, I would go through the house and box up any items that I would worry about (plus private papers, etc.), and then try NOT to worry excessively about possible damage to the rest. Remember you can ask for a damage deposit, too. It probably helps to be Mustachian, in that your house is probably not full of expensive and breakable tchotchkes.

I know a Canadian couple who retired to Mexico. During peak tourist times, including the Christmas holidays, they always plan to visit their children/grandchildren while renting out the house in Mexico. It's very efficient and profitable for them.

I'd remove anything with an account number/id on it from the house (as in, haul the entire file cabinet with me) but for 2k a day I'd do it.

With a written contract, a hefty deposit, and after meeting the people.

SunshineGirl

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Re: renting out your home for $2k/day
« Reply #20 on: December 05, 2014, 11:13:32 AM »
I'd love to hear folk's stories on this as well.

We're in Cambridge, MA.  So 3 times a year there are tons more people than hotel rooms:  Harvard Graduation, MIT Graduation, and the Head of the Charles Regatta.

We've tossed around the idea of renting our house for at least one of these, if not all three.  They all make the city an absolute zoo, so it would be nice to get out of town and even nicer to get paid for it!

But then there's the idea of "renter-proofing" the house.  Do we need to clean out our closet?  Our dresser?  Buy new pillows?  We keep the house really clean anyway, so cleanliness isn't an added burden, but there are a lot of practical questions that have kept us from actually pulling the trigger.

I have some friends who rent a vacation home, and they put a lock on a couple closets and keep that for family stuff. On a possibly-related note, I bought a clothes-rod-on-wheels from bed, bath and beyond and LOVE it. You could easily fit five feet worth of clothes on it and store elsewhere.

James

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Re: renting out your home for $2k/day
« Reply #21 on: December 05, 2014, 11:47:47 AM »
Seems like a good idea to me.

I would try and go through a company that does this sort of thing for the first time to see how it goes. Less profit, but possibly better clientele?

I would probably purchase a quality locking storage case for financial papers and things I wanted to secure. And/or put a dead bolt on a storage room if you have one, and maybe on some closet doors if they aren't used.

Just like getting into the rental business, it would take some time getting the info you need to make it work well. But I have no doubt it works well based on the feedback from many who have done it.

GoodStash BadStache

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Re: renting out your home for $2k/day
« Reply #22 on: December 05, 2014, 11:49:02 AM »
Have a chat with your insurer to make sure they are on board with the idea. Otherwise, if the renters manage to burn the place down your insurer could claim you didn't have the right rental policy in place.   Some insurers do not even offer a policy for "vacation" rentals.

I'll second this line of thought.  As much as I'd worry about damage to the house, I think I'd be more concerned about potential liability for what could happen to the occupants (injuries, death, etc.).  Your house may be safe and habitable based on a residential standard, but if someone falls down some stairs or perhaps slips on an icy patch it could be a major legal headache.

Beric01

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Re: renting out your home for $2k/day
« Reply #23 on: December 05, 2014, 11:50:03 AM »
I'd sleep in my car to get $2k/day, indefinitely.

I don't have a car, so I'd sleep on a park bench to get $2K/day, indefinitely.

AlanStache

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Re: renting out your home for $2k/day
« Reply #24 on: December 05, 2014, 01:50:15 PM »
Could you install a deadbolt one room, home office maybe, to put all personal valuables in, then tape the gap* to prove no entry?  Yes they could force entry but so could anyone on the street force entry to your front door.

tape the gap*: hell for 2k/day I would glue a door close and replace after.

edit: wow, I am actually a native English speaker...
« Last Edit: December 05, 2014, 05:43:34 PM by AlanStache »

justchristine

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Re: renting out your home for $2k/day
« Reply #25 on: December 05, 2014, 03:42:45 PM »
This is really popular in my area for a huge air show that happens once a year.  I know several people that rent out their houses for Airventure and use the proceeds to pay for their vacation for the week.  In this case it's an annual event so the folks I know that rent their houses are renting to the same people every year.  They will have separate bedding that they use just for the 'guests' and some will hire a cleaner to get the house spiffy beforehand but the effort seems to be worth it for them.  If you don't mind strangers in your home, it can be a nice way to pick up some cash.  Of course it would depend on the crowd attracted to the area.  In my area, the people that come to this event are fairly wealthy and on the whole very respectful.  So there is less risk in having your house trashed.  It might be different in your circumstances.

maki

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Re: renting out your home for $2k/day
« Reply #26 on: December 05, 2014, 04:09:34 PM »
List it on Airbnb, VRBO, and Craigslist. The good news is if you rent for less than 15 days, you pay NO taxes on it. There's another incentive.

Wait, can anyone embellish on this? Really?

beltim

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Re: renting out your home for $2k/day
« Reply #27 on: December 05, 2014, 04:18:00 PM »
List it on Airbnb, VRBO, and Craigslist. The good news is if you rent for less than 15 days, you pay NO taxes on it. There's another incentive.

Wait, can anyone embellish on this? Really?

http://www.irs.gov/taxtopics/tc415.html

retired?

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Re: renting out your home for $2k/day
« Reply #28 on: December 06, 2014, 05:53:42 PM »
I guess it perhaps depends on what sort of people the event draws, but if prepaid, probably good.  I wonder if you can get an insurance policy for this as one sees on VRBO.  We rented a place through them and paid about $60 for about 2500 in insurance rather than pay a $1k security deposit.

People did this sort of thing A LOT with the Masters golf tournament in Athens, GA.....generally, a wealthy crowd.  But, it was quite common.

I suppose I'd think about ways to protect against damage, but otherwise sounds like a win-win.