Super Beginner Medium/Long Term Rentals HELP!!

[Emily Hutson]

Hi!! 

I am hoping to hear some advice on the best way to get started educating myself on medium/long term rentals. My partner and I bought our first property this year and while we are living in it currently we don't plan on being there for long, as we always intended to turn it into a rental. I am trying to learn as much as I can about what it would take to be the landlords and find tenants. I'm looking for the cheapest, low hassle avenue for finding tenants and keeping the unit rented consistently. 

We would prefer longer term rentals like a year+. However it seems a lot of the sites I was being directed to (airbnb, VRBO, or FurnishedFinder) are all shorter term leases that seem to have a lot of unfilled days. It is a 1BD, 1BA condo with a large bonus room that can be used as a den/office/gym/or unofficial second bedroom. Located in a small 12 unit building, with a community run HOA, in the HEART of NW Portland/Slabtown/The Pearl. Two blocks from the famous NW 23rd St., has a walk-score of 100, public transport score of 99, and bike score of 99, seriously such an incredible location. It also has a super cute, very large private attached courtyard that is so fun for grilling, letting the dog outside, and having friends over. It is also walking distance to numerous Hospitals and Portland State University.

I'd love to hear any advice on what the best sites are for the kind of rental terms I am looking for. Additionally, what is the best way to figure out how to price our unit? How challenging is it to keep people consistently in the unit? We will still have to cover our mortgage so we do not want to have very many if any days unrented? What are some good things to know? Thank you!

[Mike Nuss]

@Emily Hutson welcome, and good luck! I don't know if my friend @justin green is on here or not, doesn't look like he is. You should track him down. google agent green / justin green. He has a decent amount of mid term rentals around Portland. Nothing in NW, but other nice areas on the Eastside for sure.  

I'll say this too, you're asking all the right questions. It's a business, for that reason it takes more work, paid management or systems to handle that work. If you're not already familiar with Investorlab in Portland, you should check it out. There's a bunch of people in there involved in this model that you can network with. Look me up on FB. I write a lot about real estate and economics and am working on a piece about str/mtr/ltr that I'm going to post this week. It may add some value to what you're thinking/asking as well. 

[Joey Banasihan]

Hey @Emily Hutson, welcome and great work on starting the conversation. I would piggy back on Mike's idea of getting connected.  But for some ideas around next steps, rentals, etc. I would look into Furnish Finder, check out their stats, and search current listings that are similar to yours.  When you search, be sure to search 4 months in advance as this will show more rentals.

I think the MTR, travel nursing can be a good choice. Since you are in a place of learning, pick up the book "30 Day Stay", everything you need to know or how to approach the MTR strategy is in there. Especially with regulations for STR and going through those hurdles can be challenging, I think the MTR is great way to take a healthy amount of risk, utilizes skills and processes from noth LTR and STR, and can help you charge a bit more than LTR without the headaches and high turnover of STR. Hope that helps!

[Tatum Littleton]

Great to hear your questions and information on the area you're wanting to invest in. I think either MTR or LTR is a great idea and it seems you have plenty of reasons why your condo could potentially work, it depends on how much work you can and/or are willing to do. MTR will be a bit more ware and upkeep on turnover whereas LTR could be a year or more as you mentioned and not have to furnish or worry about vacancies. 

MTR could be a hit for travel nurses or utilitarian stays for people coming to Portland to work. If you like marketing and making it a welcoming space by furnishing it and designing it, I would say go for the MTR. If you want to not worry about furnishing and just want to get a long term tenant, LTR is the way to go. 

As far as pricing, do some searching on Facebook, the MLS, or maybe even Craig's List. If you list it, you can adjust it up or down depending on the interest you get. Having consistent renting in an MTR, keeping it consistent, being a good host by answering questions/concerns quickly, and having a nicely furnished and clean space will get you good reviews. As far as an LTR, vet your tenants well and make sure they are someone you do your due diligence on, and being responsive and quick to fix problems will make them want to stay another term.

All in all, it depends on how much work you want to do and what your goals and life allow. No matter the strategy REI is active... no matter how much you hear it's passive. Keep up the good work and questions, I hope this helped some.

[Allen Duan]

Hi Emily, have you checked the comps in your area to see how much demand a unit like yours has, as well as the rates you can rent it for as a MTR? That's the first step I recommend to determine if a MTR is the best option for you. A MTR has the potential to earn much more than a LTR even with higher vacancy. 

I'd also say the decision comes down to your risk tolerance, how comfortable you are with some months earning a lot and some months earning zero, and how much work you want to do managing the property. "Is the juice worth the squeeze" in other words. Please feel free to reach out with more questions. I own a MTR property management company in Los Angeles and I'm happy to share what I've learned.

[Bonnie Low]

That could actualy work as an MTR for travel medical professionals because the configuration and location are good, there are a lot of traveler contracts in that area and wages are high for travelers in the urban PNW. Just make 100% it's not only ok with your HOA but that your neighbors aren't going to hassle prospective guests.

[Emily Hutson]

Wow!! Thank you all for the responses. I will be sifting through it all and looking into all of your suggestions. It always feels so overwhelming to get started but I am looking forward to learning more. 

[Dielita McKnight]

Hi @Emily Hutson. I am fairly new to the investing game as well. But my husband and I did have a STR-MTR rental in Marion, NC. Through FurnishedFinder, we were contacted by Travelers Haven. They have contracts with hospitals to place hospital personnel. We had a nurse for several months. It was great because we weren't dealing with the individual directly. Since it was through their hospital, they were on their best behavior. Travelers Haven paid promptly and didn't quibble about paying cleaning fees, etc. Contact them to find out if they have any potential placements for your area (https://www.travelershaven.com/).