Experience w/ Furnished, Corporate Rentals in LV? (31 day min)?
Hi LV Bigger Pockets,
I've got a property in Las Vegas that I am having a very hard time finding a tenant for the "traditional" way. Home has currently sat on the market vacant for two months, coming up on a third. I know this is a tougher time of year to find a tenant, but didn't expect this back in mid-September when the listing went up.
...We have done several price drops, altered marketing strategy a bit, and we have had some interest, but no applications. It's a beautiful, mid-century custom home, over 3000 square feet, with lava rock walls, epoxy flooring, brand new kitchen, and tons of fun retro touches. For me, it's biggest "downfall" is that the back yard, while very large and private, is uninteresting (no pool or significant landscaping.)
I am considering furnishing the home and listing it with a PM who specializes in corporate, furnished rentals. These are NOT short-term rental properties and require 31 day minimum leases. The PM company I'm speaking with says they have a big surplus of demand / calls for these types of properties. They have over 35 properties in their portfolio, all furnished rentals. (NB: I CANNOT list the home on VRBO or Airbnb for less than 31 days, since I do not have an STR permit.)
I'm just wondering if anyone here on BP in Las Vegas has experience with furnished, corporate housing rentals and could speak to their experience / difficulty keeping the property filled, costs of furnishing a home, options for staging the home to get it photographed / listed before I dump 15k+ into furnishing, etc....
Some photos of the property: https://photos.app.goo.gl/eAzW6svo2cbrHe5W8
I think this property would operate better as a furnished rental because:
-It's size relative to other homes in the area is mismatched (1000 square feet larger than most homes in the neighborhood). This drives up the traditional lease price point too much.
-It's located in a quiet part of downtown, very close to the Strip, Fremont, convention center, and UMC hospital. (so would cater to WSOP, Zappos / downtown crowd, CES folks needing extended stay, doctors on rotation, etc etc)
-The eclectic, 60s retro-factor allows it to photograph well for online marketing and I think it would be a very appealing and "fun" home for a brief stay in Vegas.
Of course, I'm worried about extended vacancy gaps since I don't have an STR permit to fill those in, and I have no clue what to expect for an average monthly rate.
I believe this home to be a solid long-term hold and has the potential to generate significant cash flow in the meantime with the correct strategy, so I'd really like to hold onto it and make it work.
Thanks all!
-Kent