I bought a two-family house. Each unit has four large bedrooms, plus dining room, parlor room, etc., and is over 2000 square feet (per unit -- the house is 4000+ total). The units are well maintained and have lots of amenities. Given the condition and size, these are top-tier rentals for my area.
My plan is to rent the house out indefinitely, and I'm wondering what the best strategy is. I worry that it will be hard to find good tenants because most families that need that much space either 1) already own a house, 2) can't afford such a large apartment or 3) can afford an apartment that large short term, but long term will end up inviting their extended family, etc. to live with them because they have so much space and can't make rent on their own.
The only good potential type of tenant I can think of is a middle-class family that needs non-permanent housing -- e.g., professionals who are in the area for a year for work and want a large space to rent for that period. But the market for those folks is small in my area, plus this would involve a lot of tenant turnover.
Another thought, of course, is to divide the house up into more units. But that would require cash and I'd prefer not to invest any more in this property.
What is your actual question? To me everything you said lead me to one conclusion, until the last sentence. Given that last sentence I see one option, screen everyone thoroughly, lease it out and make sure that the lease states they cannot bring others in to live there.
Thanks for your reply. I'm looking for suggestions about which types of tenants I might target, beyond a typical family, for this situation. Maybe there is not a better answer than what you've already given.
Is there a market for corporate housing there? Instead of renting to one person for a year, rent it to a corporation who can then use it to house whoever instead of long term hotel rooms. Just a thought.
@Account Closed that's a great idea that could potentially work here. Thanks.