Are you considering turning your primary residence into a rental space for potential tenants? If so, you’ve likely got the process of posting advertisements and going through applicants on your mind. Before you can even get to that point, however, there are some important aspects to consider first.
Short-Term vs Long-Term Rentals – Pros and Cons of Different Length Leases
When it comes to choosing a rental lease, you may find yourself torn between a short-term or long-term commitment. Each option has its pros and cons, making the decision a bit tricky.
Pros of Short-term Rentals
- Great deductions for homeowners (cleaning fees, maintenance fees, management fees, etc…)
- More flexibility in the event you want to use the property for yourself
- Potentially less wear and tear on the property (since it’s cleaned after each guest)
- Tax breaks
Cons of Short-Term Rentals
- High turnover can create more pressure on you financially
- Higher risk of theft or damage since renters are less invested in the property
- Some neighborhoods limit the number of short-term rentals
Pros of Long-Term Rentals
- Fewer overhead costs
- More consistent financial security
- No seasonal fluctuations in occupancy
- Reliable property value (for you and the neighbors)
- Thorough tenant screening process
Cons of Long-Term Rentals
- Limited to zero access for you to use the property yourself
- Fixed-rate rent means you can’t take advantage of peak values in your area
- More thorough turnover process (cleaning, repairs, etc…)
Ultimately, the decision comes down to your personal preferences and circumstances. Consider your lifestyle and financial situation when weighing the pros and cons of offering each leasing option to tenants.
Cleaning your Property – Tips for Making Your Rental Move-In Ready
If you’ve been living in the property you plan to flip and use as a rental, one of the most important aspects is making sure your rental property is move-in ready.
A clean, well-maintained property can not only boost your chances of finding a tenant quickly but can also help you keep them around for longer.
So, where do you start? Consider hiring a professional cleaning service to deep clean the property, paying attention to the kitchen and bathrooms. Repair any damage to the walls, floors, and fixtures, so the property looks fresh and welcoming.
Don’t forget to tidy up the outdoor space, too, as the first impression matters. With a little bit of elbow grease and some attention to detail, your rental property will be ready to welcome new tenants in no time. Feeling overwhelmed about clearing out your property? HERE are some tips from Western Elite.
Should I Furnish My Rental Property or Leave It Unfurnished?
Depending on what you hope to achieve, you could choose either option for your rental property. You can likely charge more for a long-term rental that’s furnished, but you might need more time to find a tenant who’s interested in that arrangement. Determining what’s best for your long-term rental probably requires some research for your area.
For short-term rentals, it’s obviously important to fully furnish the property with everything from furniture to kitchen utensils. Short-term renters expect access to linens and cookware, and appreciate a few entertainment options such as movies, books, or games.
Should Short-Term Renters Have to Clean After Their Stay?
There’s a lot of buzz lately about how people using short-term rental properties resent being asked to clean up after themselves.
If they’re paying a cleaning fee, why should they be expected to take out the trash or run the dishwasher before they check out? It’s a valid question and one you should consider when creating lease agreements for your short-term property.
The short answer is probably “no,” but with exceptions.
It’s probably unreasonable to ask short-term renters to clean the bathrooms, vacuum, and mop floors. That should definitely be included in the cleaning services guests are charged for when they stay at your property.
However, it’s acceptable to ask guests to put all used linens in a central place so you don’t waste resources washing towels or sheets that are still clean. Additionally, leaving dishwasher detergent, garbage bags, or cleaning wipes for guests serves as a courtesy to them should they need them during their stay.
Hardscaping Essentials – Perfecting Your Outdoor Living Space
Creating the perfect outdoor living space involves more than just adding a few plants and patio furniture. Hardscaping is an essential aspect of designing an inviting and functional outdoor area. Plus, the more hardscaping you include, the less watering and weeding you (or your renters) will have to do.
Best Hardscaping Ideas for Rentals
- Defined pathways
- Firepit
- Outdoor seating
- Patio/Deck
- Pergola
From creating a pathway to adding a retaining wall or water feature, landscape pros at Cottonwood Landscapes recommend hardscaping elements to enhance the beauty and usability of your outdoor space.
When selecting hardscaping materials, it’s important to consider factors such as durability, maintenance requirements, and overall aesthetic appeal. By incorporating the right hardscaping elements, you can transform the yard of your rental into a comfortable, low-maintenance retreat for short- and long-term renters.
Setting the Right Price – How to Determine a Fair Market Value for Your Property
Wondering how to determine a fair market value to price your rental home? It can be a daunting task, but it all starts with researching the market. Look at comparable homes in your area to see how their value compares to yours.
Factors That Determine Price: Location, Upgrades, Rental Period
While you can regularly vary the rental price for a short-term property to reflect peak travel seasons in your region, a long-term rental should have a fixed price. Here are some formulas for determining the best rental price for your place:
Long-Term Rental – Charge between 0.8% and 1.1% of the home’s value each month for rent.
Short-Term Rental – Charge up to 1% of the home’s value each week for rent.
As always, market research is required to ensure you’re not under- or over-charging for your property. For help deciding what your short-term rental is worth, turn to the experts at Doorstep for a free rental analysis.
Determining Whether or Not to Use a Property Management Company – Do You Want to Manage the Rental Yourself?
Are you a new landlord wondering if you should handle the day-to-day management of your rental property? Or maybe you’ve been managing it yourself but are now feeling overwhelmed and considering hiring a property management company.
Hand the Details Over to the Professionals
While managing the property yourself can save you money, it can also be a time-consuming and stressful task. Turning over management to a company that specializes in it can free you up to focus on other responsibilities in your life.
Pros of Property Managers
- Cleaning Services
- Eviction Management
- Maintenance Services
- Marketing
- Rent Collection
- Tenant Screening
Preparation is key for landlords looking to take on the responsibility of renting a property. Whether you handle all of it yourself or outsource tasks to a property manager, it can be a rewarding journey.
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