Is 150% of rent reasonable for a 3 month lease?

Question

A couple of traveling nurses contacted me, looking for a three month lease on a vacant unit I have advertised.  I'm willing to consider it, because it will bring the unit into a more favorable time of year (late spring) for vacancy.  I'm thinking that I should charge 150% of the monthly rate that an annual lease would be - this would still be less than half the price of an extended stay hotel , and do it as a vacation rental, with the entire rental period paid up front.  But I've never done a vacation rental in CT, so I'm not familiar with the current law.  Any advice is welcome.

Michael Doherty · Answer

@Karen F. If it ends up working out, I would just put them on a month to month lease, no need to get involved with short term rentals/vacation rentals ect. You can up charge them whatever you feel is necessary for taking on the additional risk of month to month.

Karen F. · Answer

Well, turns out that they have utterly ridiculous expectations.  They inquired about a 3 bedroom in New Britain that I have listed for $1100/month, cold flat - and with a pet, it's $1150.  They wanted only 3 months.  When I told them it would be 150% that for a 3 month lease, they told me all they could afford was $1000!  Two traveling nurses?  Really?  Well, lots of luck, guys.  They're starting work in less than 3 weeks.

Bjorn Ahlblad · Answer

@Karen F. if STR is a concern just do a MTM lease and charge whatever you like. Still get a security deposit. All the best!

Karen F. · Answer

Read the thread.  It's not about poorly screened tenants.  It's about how much more is reasonable to charge for a short term (3 month) lease, as opposed to a year long lease.

Wesley W. · Answer

@Karen F.

Maybe screen more next time?  The last several turnovers I had were one day affairs with no loss of rent.  I begin showing the day after they give notice (40 days in my lease).  After a flurry of activity, the place is almost always rented before the month is out.  Key is to get people at the end of the previous month who are looking (hence the 40 days).

I give a very detailed list of what needs to be done to get the SD back.  I always handle maintenance issues as they occur, so turns should not have an inordinate amount of that kind of thing.  If the place needs painting you can delay move-in for a week.  The people I am placing these days really have their acts together and treat the place well.

Karen F. · Answer

Every time we turn over an apartment, we have to refresh it (cleaning, touch up paint at the least, minor repairs at the least), and usually have a month of vacancy, plus the work of showing it.  Why in the world would I let someone in who only intends to be there for a short time, at the monthly rate for which I would expect a minimum of a year's rental payment?

William Collins · Answer

@Karen F. The biggest thing is that it could take 3 months to get them out.  I would recommend you do a 3month lease with a built in pena for failure to vacate.  This way you have ground to stand on if they overstay the lease.

@Michael Noto  What are your thoughts?

Ralph Justiz · Answer

Any rate that someone is willing to pay is reasonable as long as both parties agree.

I am not sure what the laws are in CT for collecting rent is but here in OK if you collect more than one payment at a time you have no recourse if something bad were to happen until after their last payment. I would still collect rent monthly if I were you just to be safe unless the rules are different in CT.

Is 150% of rent reasonable for a 3 month lease?

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