Short Term Leases

2 Replies

Hello!

I was speaking with my real estate broker yesterday and he mentioned that he is seeing a high demand for two week up to two month rentals in my area. The demand is coming from some of the bigger companies in the area looking to temporarily place employees and executives. He said on average if my monthly rent was $850 these companies would pay that if not more weekly, so possibly up two 4 times my regular rent.

This sounds good, but it must be a lot if work with all of the turn around. Has anyone had experience with this?

Jason

hey jason i hv a friend that rents her house using air bandb and she has a cleaning company get her units ready 4 the next person so she doesnt hv to b bothered w too much of the turnaround.  maybe that could work here.. 

@Jason Houde

We provide a couple of furnished units for short term rental, but I have an acquaintance whose business is executive rentals.

In most cases, you will be providing a fully furnished, "turn-key" rental unit (dishes, cookware, linens, etc), but will be receiving double (or more) the monthly rent rate you would for an unfurnished unit.   With this greater compensation, comes more work as you will be turning the unit over more frequently.  If you do not have this time or desire, build the cost of a PM into you business case.

One thing you need to check for the area is the minimum stay required to be considered a tenancy versus a hotel stay (where you will pay additional taxes and likely require additional licensing).  We operate in areas where the minimum stay is 2-weeks and those where it is only a week.   What you can do is lease the unit to a company on a longer term basis and simply execute a change of occupant form whenever they send a different employee.