Structuring a short-term lease

[Jessica Miller]

We just had our offer accepted on our very first SFH. It currently has 3 bedrooms and a partially finished attic. In walking the property with our agent, who is also an investor, she recommended finishing out the attic into 4 additional bedrooms and renting it to students. The only problem is the amount of time between closing and getting students to move in, probably 6-9 months. Since we don't want to negative cash flow for that long, our agent suggested renting the main floor right away as a SFH with the stipulation that they must allow contractors to work on the attic. My question is how to structure the lease if we were to go this route. Should I let the tenant know from the beginning it will be a short-term rental and possibly sign a 6- or 9-month lease or even month-to-month? Should I lower the rent to compensate for the hassle of short-term and the contractors? Curious to hear your thoughts on this!