Multiple listings or one listing?

[Jack Hogan]

Hi all - what do others do when assessing a smaller property (< 0.5 acre) that has multiple standalone structures that could be rented separately but they do not have great separation for privacy? For example a property that 4,000 sq ft with two small cabins only separated by ~10 feet and a third standalone bedroom structure nearby. Is it best to assess this property as a single rental or is there a good way to list something like this as multiple units with the option of renting out the full property if desired? 

[Nathan Gesner]

Quote from @Jack Hogan:

Welcome to the BiggerPockets forums!

There's no reason you can't rent them separately. Apartments, condos, and townhomes are connected and rent separately. You point it out in marketing, they'll see it in person, and they'll decide to rent it or not.

[Lauren Kormylo]

Make sure it’s legal to rent your property to multiple unrelated guests. Some locations have restrictions on that. You could add shrubs or other landscaping, or separate patio areas to make the cabins feel a little more private. 

[Patricia Steiner]

I recommend a couple of options to get you the highest return and the quickest occupancy:

1.  Check the market to determine what will give you the best return.  It's not unusual to find - contrary to standard investor logic - that renting a multi-structure property to one party commands higher rent than offering it as smaller square footage options with no private yard space.  This even applies to vacation rentals; we discovered that marketing a duplex with a shared common area to one party - versus two guests - commanded more rent and the demand was even stronger.

2.  List it both ways.  As one property, it would be great for an extended family situation (mother-in-law suite thing) and more. Separately is a little tricky because you'll want people who don't want/need that private yard...and that applies to a lot of people.

Good problem to have...please let us know how it plays out!

[Andrew Steffens]

Quote from @Patricia Steiner:

I recommend a couple of options to get you the highest return and the quickest occupancy:

1.  Check the market to determine what will give you the best return.  It's not unusual to find - contrary to standard investor logic - that renting a multi-structure property to one party commands higher rent than offering it as smaller square footage options with no private yard space.  This even applies to vacation rentals; we discovered that marketing a duplex with a shared common area to one party - versus two guests - commanded more rent and the demand was even stronger.

2.  List it both ways.  As one property, it would be great for an extended family situation (mother-in-law suite thing) and more. Separately is a little tricky because you'll want people who don't want/need that private yard...and that applies to a lot of people.

Good problem to have...please let us know how it plays out!

I agree with Patricia - Run it both ways.  We have several properties that are 2 or 3 structures rented as a package because focusing on larger group rentals commands a higher ROI than renting separately.  But that is in our market which is mostly beach and is family or group friendly.  I imagine in more urban markets that are not as family oriented renting separately may make more sense.  Also there is another factor that is easier (and likely cheaper) to have 1 reservation at a time on the property.  Strangers wont be stepping on each others toes potentially and then making complaints.  Something to think about.  Best of luck!