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corporate or nurse rentals?

Started by ohillary, December 14, 2019, 02:06:53 PM

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ohillary

Is anyone familiar with doing corporate rentals/traveling nurse rentals in SF?
We purchased an Outer Richmond house in 2016 and after 1.5 years of remodel, wife says its too nice and she's afraid of renting in the acrimonious conditions of SF. But since we are a few years from occupying,  it would be advantageous to cover some costs with a limited term renter.
Look forward to your thoughtful replies.
And thanks Sam for hosting blog.

Sam

Corporate rentals could be a good idea, but you would need to stage the property.

You could also go the Airbnb route to ensure that you can move into the property when ready given the short leases.

Although being a landlord may seem onerous in SF, so far, I haven't had any bad apples since 2005. The key is aggressive screening.

https://www.financialsamurai.com/how-to-select-the-best-tenants-for-maximum-peace-of-mind/
Regards,

Sam

ohillary

Thanks for reply. I'm glad you have had luck with renting. I believe our short-term needs are in conflict with the long-term desires of most renters. I also thought there were new conditions placed on Airbnb that would exclude us from using it (90 days per years and owner occupied are the biggest I can think of). If that is not true, I'd happily like to know different.
thanks again,
O

WengerTodd

Quote from: ohillary on December 14, 2019, 02:06:53 PM
Is anyone familiar with doing corporate rentals/traveling nurse rentals in SF?
We purchased an Outer Richmond house in 2016 and after 1.5 years of remodel, wife says its too nice and she's afraid of renting in the acrimonious conditions of SF. But since we are a few years from occupying,  it would be advantageous to cover some costs with a limited term renter.
Look forward to your thoughtful replies.
And thanks Sam for hosting blog.


Not going to mince words... what you state is the very reason why most people don't want to rent out a house after they've spent a year or more totally renovating it. You're not already living in it, which is usually the case, but the idea of having someone use your house after it's been completely renovated is definitely an emotional issue. The emotional aspect is usually the second biggest blocker in any decision to rent or sell.

The reality is, whoever rents your property is not going to take care of it as you would. A stain on the granite, scuffed baseboards, scrapes on the walls from moving, these are all things you'll have to contend with. But... you do want to remember that almost everything can be repaired or replaced.

Personally, I would not want a home to be vacant for a year and a half, renovated or not. You're going to have to pay for property management regardless since a leaky toilet or any other number of things can be catastrophic to the home. You're still better off renting it.

I can't say which is better though, AirBnB or actual rent. But I think I'd rather have someone in the home who was more consistent... you know what you're getting. It only takes one bad AirBnB renter out of dozens to trash a home.

As I said... it's all about emotions. Most people who lease out or own an AirBnB rental, they've come to terms with the reality of the situation and look at it strictly as a business. Damage to them is wear that comes out of the overhead as it'll eventually need to be repaired.

I only harp on this because I understand it all too well. I have two homes, one of which I currently rent. It took a few years for me to "separate" myself emotionally from the house since I personally renovated every square inch of the home. My current renters are actually quite decent, and I want to keep them. But the home I'm in now... I'll be moving in two years and I've also *totally* renovated that home as well. And I just don't know if I'm willing to keep it and rent it out, or sell it outright. My concern is with the home fully renovated, it's worth "X." With the home rented for a few years for "Y" value, and then sold later, it will only be worth "Z." Will Y + Z be worth more than X?

ohillary

Thanks for the detailed response; looks like you've been there/done that. You hit the nail on the head: I went down to studs in half the house, new furnace, 200amp upgrade, gas fireplace, new bathrooms, and more and I don't want it f'd up. Wife says I overdid it but I say now's the time to do it (when vacant) and I don't want to do it later (I am 68, and sore). And I see what you (and Sam) are saying about having a good satisfied renter, steady income, minimal damage to home, etc. We all want, and deservedly so, a place to come home to, to recharge, to shelter, etc. That usually evolves into long term expectations from the renter and possible conflict at the end of the trail. I can only rent mine for 2-3 years, then I need my place back.  A lot of good points to think about, tho . . . thanks
O

WengerTodd

Quote from: ohillary on December 21, 2019, 08:57:26 AM
Thanks for the detailed response; looks like you've been there/done that. You hit the nail on the head: I went down to studs in half the house, new furnace, 200amp upgrade, gas fireplace, new bathrooms, and more and I don't want it f'd up. Wife says I overdid it but I say now's the time to do it (when vacant) and I don't want to do it later (I am 68, and sore). And I see what you (and Sam) are saying about having a good satisfied renter, steady income, minimal damage to home, etc. We all want, and deservedly so, a place to come home to, to recharge, to shelter, etc. That usually evolves into long term expectations from the renter and possible conflict at the end of the trail. I can only rent mine for 2-3 years, then I need my place back.  A lot of good points to think about, tho . . . thanks
O

No problem, totally understand. For rentals... most states only allow 1-year leases. So if you're confident on two years, you could easily do that... worst case is you agree to a third year with the understanding that the renter needs to vacate at the end of the third lease agreement. But you'd know your market better than I would. Best of luck!