Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
My primary residence here in Lake Oswego is the question.
turns out one of my projects got harpooned by the City of Lake Oswego and the cost to split the estate lot in two just does not make sense.. So I am thinking I will build a new home to live in on that lot.
In the meantime I have bought my future basic retirement home in Vegas so that's secured and done.
But my question is this house here.. It will be vacant for much of the winter months its only 4 years old I built it.
Master on the main..
5 bed 5 bath fully furnished with nice stuff.. basement with full gym etc.. kitchen is top of the line Wolf and sub zero all granite and marble you know the drill.
My question is would you allow someone to live in this short term and would they trash it.. ??? would I leave all my high end furniture ?
and I wonder how much they would pay per night or short term how do you figure that out..
Most of the Air bnb s I have seen around here are modest homes or like ADU';s there are nice ones at the coast..
Thank you in advance for your opinions and help.
And if this went well enough I could just keep it long term rental and when I sell 1031 or I would have a few years to use my 121 500k exclusion.. I don't owe much on this house and the carry is half of than I know regular rent would be.. thinking regular rent in the 5k range.. and I know I have a ton of dead equity but I like that safe secure access to it and my commercial bank that funds my developments likes it as well.
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
8y
Sometimes I have to demonstrate this to my wife: I put 400 dollars of weekly rent in her hand and ask her to put her wishes for 800 dollars of weekly rent in the other hand. I ask her which hands fills up faster. This is on a $9500 house with about $1500 in furnishings.
Lake Oswego, OR · Member since 2016 · 4 posts · 1 vote
8y
Hi Jay,
I think short term rental for a high end home in Lake Oswego sounds very reasonable. Lake Oswego prohibits rentals < 30 days, but they are considering easing up on this rule too. We have a higher end rental in this area (albeit unfurnished) and I have seen my property management company advertise several high end furnished homes on their site (5-7k/month range), with some listed as short term winter rentals. I think with a high security deposit and good screening, one would be safer.
Lender · Pensacola, FL · Member since 2017 · 658 posts · 626 votes
8y
One of the topics I haven't seen discussed on BP yet is house sitting. Homeowner retirees who can get on the list of trusted house sitters find a world of travel on a shoestring budget (if that's something they want to do):
Some traveling retirees don't like the idea of moving their furniture back and forth from storage if they want to rent out their home while they spend part of the year living in another part of the country (snowbirds, sunbirds):
Combining these two ideas, perhaps you can find a trusted house sitter to live in your Lake Oswego home while you're living in Las Vegas. Perhaps a below-market rent for the trusted house sitter might be worth the peace of mind. Whatever. It's something to think about.
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
8y
I have a friend that did Airbnb on their $6mm Cedar Lake home in Minneapolis. They never had any issues from guests except a broken tv that was paid for. $800 a night was the average and they had about 50% occupancy.
It may be worth giving it a go and just leaving everything in it. They had a cleaning lady and manager helping run the whole thing while they lived in France. The Nest video doorbell helped them know guests weren’t bringing extra people.
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
thank you for feed back.. @Jordan Moorhead my home is not a 6 mil home its nice but its not on the lake..
but for someone working downtown I am only 5 minutes to I 5 which is nice. and I am on a private street only 3 homes including me and walk to 1 through 8.. which families like.. but not a lot of families here because of price point.
I know I could get 5 to 6k a month for it.. for sure.. just wondering how the nightly stuff would fair out
800 a night at 50% occ I s12k a month that's pretty good money.. @Anil Thomas did not realize Lake O had that restriction so it might be moot..
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
8y
Sometimes I have to demonstrate this to my wife: I put 400 dollars of weekly rent in her hand and ask her to put her wishes for 800 dollars of weekly rent in the other hand. I ask her which hands fills up faster. This is on a $9500 house with about $1500 in furnishings.
Specialist · Denver, CO · Member since 2015 · 85 posts · 29 votes
8y
I am just starting an airBNB and while my property’s location does not have a 30 day lease restriction, I did sad that some people require a 30day lease which can then be terminated by either party at any point without a break fee as a “work around”. Not sure about the legalities of this but I thought it was clever. I’d check with your local laws and attorney first to cover yourself. Best of luck!
Go to Airbnb, search your area, and look at what places are "booked up" and price out different months for a 7 day stay. This will get you an average per night for different seasons.
2nd, go to AirDNA (extra fee as you probably know) and put in your city. I like to look at the "Top 10" Airbnb's in my city and look at their stats.
As far as people destroying property, it definitely can happen. What I've noticed helps prevent them are
1. Do not accept day of bookings
2. Avoid 1 night stays from locals
3. Get cameras for outside the property
Also make sure you jack the price up for Holidays, this helps prevent parties.
It is a pain to try and get anything back from Airbnb from past experience.
Rental Property Investor · San Francisco, CA · Member since 2016 · 227 posts · 365 votes
8y
@Jay Hinrichs - I agree with @Travis Rasmussen’s suggestions but modified to accommodate for the 30-day minimum. I manage several AirBnb’s in San Francisco, which also has a 30-day minimum. It’s a very different market than yours but the thought process is the same: What kinds of travelers would want to stay in your place for 1-6 months? I find that although the nightly rate is lower for long-term rentals, the money is still good because guests are willing to pay a premium for the convenience of a furnished place in a nice area. I have had groups of summer interns, construction workers, families and traveling nurses all stay in my 4-bedroom properties.
Over the years I have never lost more than a broken lampshade due to an AirBnB guest. Given that your place is furnished already, you have little to lose by renting it out for 1-2 months to see how it goes. You might make a killing during summer months, yes?
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
@Ethan Cooke thank you and thank you to the rest who responded.
as I am sitting here drinking my coffee I am thinking its probably not fair to the neighbors to do super short term rentals
I have seen houses trashed by parties and my house has far to many nice things to even remotely risk that one.
So probably either not rent it and leave it vacant or if I do take a 6 month lease at a time with a very well qualified NON smoking no animals tenant with a large deposit.. Its hard thinking about strangers coming into your personal space. at least for me.. and like I said I would not want to live next to a house that has different folks in and out constantly.
Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
8y
Hey Jay!
Highend AirBNBs generally do well in high demand resort type areas. If you are not going to be in the area while it is being leased, I would recommend finding an experienced co-host in the area that can carefully monitor things and help keep your AirBNB rating high.
You can find a lot of experienced co-hosts through AirBNB and usually only need to pay them 10% of the guest fees. They help screen guests, check the guest in and welcome them to the property, provide good customer service and will clean or oversee cleaning between turn-overs. Believe me, they are worth the money!