I am in Michigan. I have a Condo, I have found a great niche it appears. I am near some new construction developments. I was having challenges getting the the amount of money I wanted to generate the return I desired doing traditional leases.
Because of these new developments it appears there is a Healthy short-term rental market. People are willing to pay 3-6 months upfront while their home finishes being built, but they sold their previous home. They then can renew for 3 months, or go on a month to month(at a higher rate than prepaying for 3 months). I checked my local laws, in terms of landlord tenant, and didn't see anything illegal.
Is this good practice and is it ethical?
Why not? My company does the same. We cater to some markets where others have no offering. Semester leases for students is a prime example. It's a little more headache, but pre-payment and a slightly higher rate help cover the headache. If the glove fits....
Short term rentals are common. They are more work - normally the units are furnished and stocked with towels, dishes, utensils, etc. ... kind of cross between an apartment and a hotel
In your situation, I presume they are bringing their own furniture, but you may want to consider renting furnished as there is less wear and tear to your unit with all the moving in and moving out.
Here we are not allowed to require or accept rent more than one rental period in advance. I would check your local tenancy law to confirm you are allowed to accept several months rent upfront.
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