Short term or long term rent through 2020/21?
Hey everyone! Thanks for taking time out of your busy days to read this. I wanted to get thoughts from some of you in regards to renting during these unprecedented times.
I have a condo that I’ve Air BnB’d in the past and just closed on a triplex with one unit still vacant (other two have one year leases).
With everything going on would you try for short term month-month or try and get long term renters to “weather the storm”? Concerned that tenant protection laws might put me in a tough spot through 2021 if tenants don’t pay rent.
Most Popular Reply
My clients and I pondered the same thing here in Florida. Here's what we learned:
1. There's still a market for short-term rentals and I think demand for it will increase in the short-term due to Covid. I know that sounds counter-intuitive but "hot spotters" are looking for "escapations." They stay longer since they are now able to work from anywhere. For those landlords who are willing to adjust their pricing for monthly to three months stays, the opportunity will be there.
2. Normal vacation rentals aren't so normal right now. Again, they're staying longer - but not six months or a year.
3. Long Term Leases. Unless you're going to remove the furniture, I would not recommend going this route. The risk is just too great that you get someone with nothing but a toothbrush living off of you until some moratorium is lifted.
The great thing about these properties is that you have the option. The right long-time tenant might make going that route acceptable but the ROI of short-term rental makes staying the course with modifications more attractive.
Hope this helps...