Very often, we find that people are wondering about renting out their apartment or rental property to apps like AirBNB. While we are not going to tell you not to do this, there are a couple of things we want you to think of first. Here are some of the pros and cons to renting out your area for shorter periods of time. Pros: 1. Quick Turnover. If you happen to get a tenant in your property that you don't really like, then you know they are never going to stay there long. This means that you will be able to wash your hands of those people and move on to a better resident for the next time. 2. Reviews. Situations like these rental apps allow you to review tenants as well as get reviewed as a landlord. This is true whether you stay in the building while your visitors are there or not. As a landlord that has a long term lease, you may have people review you but it won't reach as many people and may not help others to find out who the bad tenants are. Cons: 1. No Lease. While it may at first seem like this would be a good thing, as leases are expensive and tedious, this also means that there is little recourse in the event that something ends up happening. If you have a long term renter, you get to keep their security deposit. However, if something happens and you are only renting through an app like this, you won't have the same protections that a lease provides. 2. Not Consistent. Having a rental through an app like this, while great for vacation areas during the travel months, is not a consistent source of income like a long term lease is. If you have someone renting for a full year, you know that you likely have income for the full year. If you are only renting a few days at a time, there is no assurance that you will have someone stay there the whole time. While temporary renting may be good in between other tenants, you really do need to take into account all of the possible outcomes. We only hope that you figure out what will work best for you.
While this is certainly something you never want to have to worry about, it is something that you should probably have a plan for. Unfortunately, tragedy can strike anyone at any time and although you have a lower chance of having to deal with this if you rent to a younger person or family, you never really know what is going to happen. This is why we always suggest that you have a plan put in place for what will happen if you are renting to someone who passes away. When I was a teenager, my grandfather passed away. My mother and I were staying with him at the time, as he needed 24/7 care. He lived in a house trailer on rented land which he paid twice a year, in April and in October. When he passed, it was January and so his rent was paid up through April. The man in charge of the land told us on the day he passed away that we had less than a week to get out of the trailer with everything as we were not on the lease and this was his policy. While not every landlord will have this view, each person should have some idea of what they will do if a situation like this were to occur. Letting a family member stay in the apartment through to the end of the lease to sort out your tenants affairs may open you up to issues if something were to happen to them, however if you have ever tried to take care of the estate of someone who has passed you know how difficult this task is. This is why it is important to form your own view and plan, as each person has a different situation. If you are alerted to a situation where an elderly or severely injured person is being taken care of, then you should always go over the policy with their caretaker so that they are not taken by surprise while still grieving. Although death is always an upsetting thing to think about, as a landlord you never know what is going to happen. Even if only one of your tenants passes in a multiple named lease, you should have an idea of what you will do. Sometimes there are good reasons to let a lease break.
One of the biggest struggles for someone who has a rental property is finding someone to live there. While everyone needs somewhere to live, you also need to remember that you aren't the only apartment in the area. There are hundreds, if not thousands of different places that are trying to find someone to live in them, just like you are. Sometimes your place gets taken off the market quickly, and others it can take seemingly forever to find a tenant. Here are a few ideas of how to find someone to live in your rental property for little money on your part. 1. Post Locally. Posting about an apartment in local businesses can really help out someone who is looking. You can always just ask someone if you can place some fliers or business cards in their work place. You may even help them out in turn by purchasing a small gift card for your future resident to their business location. 2. Put It Online. There are dozens of sites where you can post for free about different things. Sites like Craigslist are always popular for people to look for new housing arrangements and you can be certain that people are going to see your listing as long as you post it correctly. Posting it online also helps to bring it to more people as they do not have to be in the area when they look at your apartment online. I have been looking at certain apartments a few states away for friends and it is so wonderfully easy. 3. Word of Mouth. While this technique isn't used as much anymore, it has likely gotten me my next apartment. I mentioned to a friend that I was looking to move and they put me in touch with someone who had an empty apartment. You never know how useful your friends can be in helping you out when it comes to filling your rental property, so put some feelers out there for those who may need somewhere new. These are three of the most obvious ways to try and get some new residents without paying an arm and a leg, but sometimes there is nothing wrong with trying the obvious ways first. In fact, they are well used for a reason. Let us know what other methods you have used and stick around for some more ideas.
As a landlord, one of the last things that you want to hear is that your tenant is going to break the lease they have with you. However, sometimes this is an unavoidable situation for both you and your tenant. I know that I have never wanted to break a lease, however sometimes it has happened for one reason or another. Here are a few reasons that you may want to offer an option to break a lease with your tenant. 1. Death. This is probably the number one reason to allow people to break a lease. Whether the death is that of your tenant, one of your tenants, or someone close to your tenants, death is something that really changes the game for everyone involved in that life. Sometimes people lose a family member and need to travel to take care of the estate or perhaps they have been left a different housing arrangement. Always have a plan about when death hits at least close to home for those on your lease. 2. Loss of Work. Sometimes, losing your job means the need to cut back. Unfortunately, this does sometimes mean the need to find a cheaper living situation. If your tenant has lost their job and can no longer afford the terms of your lease, you may be able to help out by allowing the lease to be broken and not continuing to charge them something they cannot afford. 3. Severe Illness of Injury. When someone gets sick or hurt, everything can change. Sometimes they need to stop working. Other times, medical bills can pile up to the point that any amount of income that doesn't go towards food needs to go to that so they can continue to be treated. If your tenant or someone close to your tenant has a situation like this, then you may see fit to break the lease you have. If your tenant needs to move to care for someone who has become disabled, then breaking the lease may be the best thing for all involved. While it is always painful to break a lease, sometimes it is the best thing that you can do for your tenant. After all, if they cannot continue to pay their rent and are open about it, at least you know that they are responsible. You never know, perhaps if the issue that caused the lease to be broken is resolved, they may just come back.
Some people get started with very little in the way of furniture. While some are fortunate enough to move in with everything they need, many are trying to start from scratch due to any number of reasons. In situations like these, you will often see someone move in with not much more than their clothes and a mattress. Often, this is actually an air mattress. You can, however, provide a fully furnished apartment for very little money or effort if you're interested. Here are some pros and cons to doing that. Pros: 1. Tenant Safety. Often, if a tenant does not have funding they will attempt to purchase cheap things and this may include appliances. Old or cheap appliances like microwaves and air conditioners are often safety issues due to exposed wiring or simple overuse. If you furnish the apartment, you know that your tenant (and your property) are relatively safe. 2. Tenant Comfort. A comfortable tenant is a happy tenant. For someone who is coming to your property with very little often has a heck of a story as to how they came to have very little. Often, these are abuse victims or people who have lost everything in some kind of natural disaster. If you are able to provide them with some form of comfort, then that will make them more likely to stay with you for an extended period of time. Cons: 1. Moving. If your tenant shows up and says that they do not need furniture, then you will need to move everything out of the apartment. This is often at least a full day of work and you can't always afford to take that. This is even more difficult when the apartment is on an upper floor or if you don't have people that can help you move. 2. Storage. Let's face it, storage of an entire apartment of furniture is not small. Either it will take up a lot of space at your home or you will spend money on a storage unit. Either way, it is inconvenient. At the end of the day, it is your choice whether or not you offer furniture for your tenants. It is always a good idea to look at the area you are in and the tenants you are renting towards. You never know how much it may help someone.