Short-Term Rental to Long-Term Rental - Dallas, TX

[Nicholas A.]

Good day!

I am going to make this short and sweet.

I turned my primary residence into an STR in the heart of the boom. Dallas is now severely over-saturated with endless properties underpricing each other. We have a nice place in a good location, but I am not happy with the occupancy or average daily rate anymore. Honestly, we are not profitable right now, and I don't have a magic ball to see the future. I also want to qualify for another mortgage soon, which means I need to provide evidence of legitimate long-term revenue, ie LTR lease etc. As a result, we are going to begin the pivot to a long-term rental strategy. This is the first home that I will have ever rented long-term. We will rent for a 12 month minimum. Will also likely hire an LTR property manager.

3 bedroom / 2.5 bathrooms / 1,915 sqft / Complete gut and rebuild in 2020 /  Dallas, Texas 75208

A few questions:

1.) Property is fully-furnished. Nice furniture and amenities. What kind of multiplier can I use against the standard rent if we rent full-furnished? I will have to pay for storage if not rented full-furnished. I have considered this cost, but am not exactly sure what size unit I would need.

2.) Charge for all utilities, cover some and charge the rest, or include all?

3.) What's the best web source for listing a house for rent?

4.)What have I not thought of that I need to consider?

5.) Where can I find the most legitimate fair market rent value for this home?

Thanks in advance,

Nick

[Joel Broyles]

Hi Nicholas, very good questions.  That part of town is fantastic, but you're correct - saturated. 

1) Maybe 15-20% bump at most.  Fully remodeled in that part of Dallas - might be a higher % who will take it furnished.  Lots will not want that - keep it furnished for marketing and showings. 

2) Utilities - 100% to tenant. 

3) There are so many - use one that will syndicate across the spectrum. 

4) Vet prop mgmt hard - not just one that is nearby the subject property.

5) Use a broker/agent. A good prop mgmt firm will do that.  

Good luck!