I converted a house I previously lived in (my previously single batchelor pad) to an annual lease term rental. The property is higher end with bamboo floors, stainless kitchen, butcher block/steel covered bar, separate studio office/building, and a 7 person sunken hot tub. All in all, its an "attractive" rental, but could be a liability nightmare, given the sunken hot tub and higher end appliances.
I have to be quite selective with tenant screening and though I have a large pool of prospects, it still remains a challenge to find the right fit for a property such as this with considerations ranging small children (liability concerns only) to pets.
I have considered removing the hot tub and its supporting sunken deck, though it is quite an attractive feature both from a rental as well as sales perspective. Of all my properties this one generates the highest CF return when all is running smooth.
All in all, I wanted to gauge thoughts on higher end SFH long term (annual lease) rentals and properties with these types of amenities. Are they worth it?
@Bill Bell could you market it as an "executive rental" for CEOs and higher level employees whose corporations need to rent them places to live before they buy their own homes?
The property is in a resort as compared to a metro market, thus we do not see much CEO/corporate traffic in the area.
As for the standard rental pool in this area, it appears to comprise standard small/chain retail business, local gov/schools, medical, construction, and special projects efforts. Additionally, may find people who wish to relocate to "the beach" as early retirees.
There is also a robust season "weekly" rental market, though the properties specific to this arena tend to be large multi-million dollar properties hosting large groups of people on vacation for a week at a time. High weekly income, though high maintenance, property mgmt costs and short season rental window (less than 6 months annually). Supply is also high for this market, relative to demand.
All in all, I can find fits for this particular property within the tenant prospect pool, though as compared my other "basic" properties, this one requires a bit more selective screening which is both a positive and negative.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.