Turning A Primary Home Into A Midterm Rental

[Jamie Banks]

I'm relocating to a new state next month and recently converted my house hack to a whole home midterm rental. My property is a 3 bedroom, 2 bathroom condo in Reston, Virginia. I often get asked home to convert a primary residence into a MTR and wanted to share a few steps:

1. Evaluate the inventory: Take inventory of all your furniture, decor, and kitchenware. Identify any items that need replacing.

2. Market research: Research 3-4 similar properties on Furnished Finder and Airbnb to determine your rental rate. Check local short-term rental regulations.

3. Underwrite the property: Ensure your property works financially as a midterm rental. Include expenses like utilities, HOA fees, and reserves.

     - Pro Tip: Check with your insurance company about policy changes for rentals.

4. Prepare the property: This is the time to purchase new furniture, restock supplies, and complete any necessary repairs.

5. List the property: Once you have professional photos, list the property on midterm rental sites like Furnished Finder, Airbnb, and Zillow.

Happy to answer any questions that anyone has!

[Taylor Dasch]

Great advice, I found that the professional photos and doing the rehab slightly above the competition really seemed to help as I had almost 0 vacancy! 

[Gregory Schwartz]

Pro Tip: Airbnb provides a level of protection if you end up with a "problem" tenant. However Zillow and Furnish finder are simply going to give you a lead. Make sure you are properly screening your leads the same as you would for long term renters. 

Dont cut corners just because they're only staying for 2-3 months

[Zachary Deal]

Very helpful, think this is a great outline of the main steps one needs to take for MTR or even STR conversion!

[Miguel Del Mazo]

Great post.  I would add that this is a geat time to reassess not only insurance coverage but any recurring expense as well as maintenance needs. Has the price of internet creeped up while you were in the home? Renegotiate it. Who is going to change the air filters in the HVAC system or mow the lawn? You will likely be losing the right to a homestead exemption, so let your local municipality know. 

If you've enjoyed a lot of appreciation in the value of your primary home, you may want to start a timer to sell before losing the "lived in the house for 2 of the last 5 years" capital gains exemption (limited; not infinite, but big).  

What important business mail will be coming to what will now be your old address? Can you go ahead and change that (think address of record for LLCs or bills for other properties).

Make sure any HOA and the local government allows for your home as an MTR.

1 last point to add to Jamie's first point: if you can, take a video tour of the home and what you're leaving behind. Insurance companies appreciate that evidence if a claim were to be made. 

[Allen Duan]

Hi Jamie!

Properties formerly occupied by the owner are always the hardest for us to onboard (We do STR and MTR property management). There's always so many personal items left behind in the home we have to sort through. I've learned the easiest way to do this is ask the owner to remove everything unnecessary for guest use AND give us permission and the freedom to remove items as we see best.

Less stuff in the home, less issues and less work each turnover.

[Sylvia Santelli]

That's a really great list! 

I'd like to add that for anyone else wanting an to convert their primary property one day build good relationships with your neighbors in the mean time. Get to know them, let them know you are a good responsible home owner and business owner. When you are ready to make it happen assure them that you will be looking out for them.