Strategy to Maximize Rents

[Kyle Fronckowiak]

Hi All,

Currently, we reside in a 4-bedroom, 2.5-bath house located in Santa Cruz County, California. Additionally, we have a 2-bedroom, 1-bath, 800 sqft. Accessory Dwelling Unit (ADU) that we lease to a long-term tenant on a month-to-month basis for $2,850 per month (inclusive of all utilities), and a 300 sqft. Studio that operates as a Short-Term Rental (STR) generating an average of $2,200 per month.

Our ADU tenant has been leasing from us for the past 4 years, and we have maintained the rental rate without any increases. Rentometer indicates the current market rate to be $3,000 per month. While considering raising the rent to reflect the market rate and adding an additional $100 for utilities, I find it challenging as we have built a positive relationship with the current tenants.

As for our Studio (STR), I would appreciate any suggestions on ways to optimize the income potential of this space. We value the flexibility of using it for personal purposes when needed, but maximizing its potential for income was the primary reason for its construction.

I am seeking input and feedback from the group regarding our current situation.

Thanks!
Kyle