Should I rent for 6 months?

Question

Have a house I was planning on using as a long term rental, but been asked if I would rent it for 6 months. Obviously I would charge more for this (research shows 25% - 35% over LTR rate), and I wouldn't be furnishing the house. If I were to rent for 6 moths, the lease would end Feb/March time frame given its almost September now. Its always been my understanding that renting in the winter months can be challenging compared to spring/summer. Whats your take on this? Stick to LTR or see how this goes as a MTR?

Zachary Deal · Answer

My guess is if they are doing 6 months and didn't ask about furniture they are bring their own. They may want to extend for a year after the 6 months at a discounted LTR rate or it is simply a transition place while they look to buy, etc

Zachary Deal · Answer

I think if you're getting 25% - 35% more than LTR rent for a 6 month lease it may be worth it be slightly off cycle. If you are getting 35% more than you have a 2 month cushion to rent the property before it's not worth it. Depending on demand in your area that should be feasible. In NYC the demand is lower in the winter but the supply is also lower so apartments rent fairly quickly still (typically within a few weeks).

Colleen F. · Answer

@Emory Clayton what other potential renters do you have and what size is the house.  If it is a larger house and the renter group is families consider that moving in the school year is less common. Is it a firm 6 months or is it likely to be extended.

Theresa Harris · Answer

It depends on your location as to whether or not it is harder to find a new tenant in March.  The fact that you'd be renting it for more, should help you mitigate any lost rent if it does take you a bit longer.

Sylvia Santelli · Answer

Do you know what they would be doing about furniture? Are they "roughing it" and bringing sleeping bags? Are they renting furniture?

You probably can't change the rate by much, you can raise it some if you include utilities.

Emory Clayton · Answer

Yea, I would agree that the rate wouldn't be on par as an MTR that is furnished, however I do remember from my renter days that the shorter duration leases were more expensive per month than the yearly leases. I immediately posted my question in here thinking "6 months lease?? thats an MTR!". But its obviously not exactly the same as the house is not furnished...but it did have me thinking...

Clayton Silva · Answer

Good problem to have! I would think that MTR is same rent as LTR if the property is unfurnished so definitely confirm your numbers there.  As for MTR in the winter, depends on the market.  We have an airbnb in PHX and winter is our best months of the year so it really depends where the property is located.  I would try to network with other MTR landlords in the area to determine best course of action

Should I rent for 6 months?

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