Long term vs Short term rentals
Hi everyone
I'm kinda new to posting here so please bear with me.
I have a 3 BR house in Ventura County, CA (Simi Valley, to be more precise), which I have been successfully renting thru Airbnb. At the moment, I'm restricting stays to a maximum of 29 days due to the legal definition of "Short term vs Long term" in California.
Because I've been getting inquiries, I would like to entertain longer stays, if possible. Some of these inquiries are coming from insurance companies which need to relocate their clients temporarily due to repairs being made to their own homes.
I absolutely don't want to get into the situation where I need to "evict" a tenant because they've stayed for more than 30 days.
Any advice here would be welcome.
Thanks y'all
Mike
(BTW, I stated the location as Los Angeles county even though the property is in Ventura county because the website would not let me show it as Ventura county.)
Are you looking to do LTR over STR because it's less work? I'm currently looking for a home to rent out and the main reason I'm going STR over LTR is because how difficult it is to evict someone especially in NJ. If you are looking to make it more passive why not just hire a property management company? You'll still make more than if you did LTR with little to no effort on your part.
The work part of it is already very manageable. Also, NJ and CA are probably very similar in terns of eviction.
There are, however, situations where someone may need a longer term rental because of damages to their own house and needs to move out while theirs is being repaired. Usually, an insurance company is involved. It would be nice to accommodate some of these requests. I have had two in the last few months.
Sounds like a good question for attorney because I would think you are entering into a deal with the insurance company, not the potential tenant. I would prefer it that way for sure.
Hey @Michael Riba!
If you are considering going the LTR route I would have an extremely strict vetting process. Even if the clients are being referred from any type of company you still want to know what you're getting yourself into.
Otherwise, what is the best-case scenario for you? How do the pros and cons weigh on each side?
If I can help in any other way don't hesitate to reach out!
Best,
Josh
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@Michael Riba we've done MANY temp insurance placements and never had a problem with a tenant staying without paying and needing to be evicted.
They all want to move back to their original homes!
Now, in our experience 100% of these leases extend. The insurance companies ALWAYS & DELIBERATELY underestimate the length of stay.
It's never been an issue because the insurance company pays and they pay 20%+ premiums over standard LTR rents for a given area.
Quote from @Drew Sygit:
@Michael Riba we've done MANY temp insurance placements and never had a problem with a tenant staying without paying and needing to be evicted.
They all want to move back to their original homes!
Now, in our experience 100% of these leases extend. The insurance companies ALWAYS & DELIBERATELY underestimate the length of stay.
It's never been an issue because the insurance company pays and they pay 20%+ premiums over standard LTR rents for a given area.
awesome info
Here in Florida it takes about 30 days to evict.
Most people do a first, last, and security to move in. We do a first and two securities. In the case that you have to evict you essentially have two months of rent in hand.
Michael;
Verify with your Lawyer as you're in Ca and I'm in Fl.
Write up consecutive 30 day leases. Separate contracts every 30 days, signed the first of each month.
Contracts could be issued every 30 days via email - signed via DocuSign. Security deposits transfered fom one contract to the next.
Paul Maurer
Lots of work.
Need to integrate that with Airbnb.
Sounds like (short) long term leases stacked end to end.
I'm tryin to keep it simple.
It is simple. a One time contract with blank names & dates. Make sure you get your lawyer to Ok the legality of it.