All Forum Posts by: James Carlson

Any advice on renting to a student whose father will pay the rent? 

I have a furnished property in Denver and just received interest from an attorney in New York, whose son is starting school at UC Denver in the winter semester. The father wants to pay the rent. He seems to check out. He wants a 6 month lease with a 6-month renewal option. 

Anything I should be aware of in a situation like this? Any particular provisions to get in the lease? Should I have the father sign on as a tenant as well?

Any thoughts would be much appreciated. 

Hey @Anthony Gayden . Did not mean to get too serious or offend anyone. Just a little playful trash talking. And I tried to say that I was only talking about lifestyle, not real estate.

I think Minneapolis is a really cool city, some really interesting areas ... but it is demonstrably colder and snowier in the winter. Average high temperatures in Minneapolis in December, January and February - 27, 24, and 29. In Denver, it's 45, 45, and 46. Minneapolis gets 45 inches of snow a year. Denver gets 25. 

I think a lot of people have old stereotypes about Denver being a cold and snowy place. It snows often but not a lot and the next day it's 45 and sunny and the snow is gone. 

Real estate wise, Denver's a pretty tough market to find things that make sense. Margins are just smaller than probably the other two markets. But gosh, @Camron Stewart you get to live in Denver! (Especially if you're from Provo, you'll feel at home in Denver.) Good luck on your dive into real estate. 

@Camron Stewart, I'll leave the investment analysis to others, but for lifestyle, it's a no-brainer. Minneapolis is a really cool town ... half the year. The other half, it's Siberia. Dallas ain't bad, but it's a sprawling mess that's hot as Hades half the year. I would of course vote for our fair city of Denver. 300 days of sun. Legal pot, if that's your thing. The best craft beers. Tons of different cool pockets to live in (if you can afford it). Oh, and the mountains are an hour away. 

@Blake Brose, I tend to agree with you. According to Airbnb, they have 4,000-something listings in Denver. (I tend to think they're underestimating. They certainly have an incentive to not reveal a large number that might scare neighborhood associations and the city council.) 

We'll see how it plays out, but I envision a complaint-driven game of whack-a-mole. 

@Matt Jordan . Yes, Denver is pretty damn awesome. I think people assume it's either a cow town or a snow-filled mess for six months of the year. Neither are true. While it's no cosmopolitan metropolis, it's filled with cool pockets of restaurants and bars and parks and shops. And the weather is amazing. Sunny almost all year. When it does snow, it's here and gone within a few days. And yes, we have some sane laws regarding pot. Whether you imbibe or not, it's pretty cool to walk into a shop and see for legal sale a product that will get you arrested in a less progressive state. 

You're spot on about finding a studio with a little something different. A tiny basement studio with no light and old fixtures ... probably not going to do it. My wife and I own a 350sf studio in a cool location, on the top floor (read, "Penthouse Studio" in the rental listing), with nice updates. We rent it nicely furnished to traveling nurses for 3-6 month stays. It's not Airbnb money, but it's about 50% more than we'd get if it was unfurnished and long-term. 

Beware of buying here, though, soley for Airbnb short-term rentals. The new Airbnb laws going into effect Jan. 1 outlaw STRs in a place that isn't your primary residence. 

As for calculations ... I've only bought my one investment so far, so you might seek the wisdom of more sage investors. That said, we bought using the BP calculators and used long-term rental prices as our input. That way, if something happens and we can't do these medium-term furnished rentals, we still have a cushion to fall back on. 

@Paul Rogert, the way I'm reading your post, you're not going to occupy this place, right? If you were, I'd suggest maybe leaving it as is -- it has a bathroom, you said. You could then short-term rent it on Airbnb. (A kitchen is by no means a requirement for many Airbnb guests.) It would be within Denver's primary residence rule for Airbnb. It would make you good money. And you would avoid having it classified as an extra unit, which others on here with more experience in zoning seem to think will be a hardship come selling time. 

Even if you don't live there, you have the option -- under Denver's Airbnb regulations -- to allow your renter up top to rent out the basement in what is essentially their primary residence. If you struck the right deal with the up-top renters, splitting profits however you agree upon, you could still make out with a well-designed basement space. 

For those Denver peeps involved in short-term rental management or who own their own STR or just anyone interested in the direction Denver's new Airbnb law:

The next Short Term Rental Advisory Committee meeting has been scheduled for 4-5:30 p.m., Tuesday, Nov. 29 in room 389 at the City and County Building. 

Last meeting provided some insights into just how the city may (or may not) be able to enforce the Airbnb rules. If anyone else is going, let me know so we can meet up there. Cheers!

@Jason Bullinger. @Kerry Baird had some great ideas. I won't repeat any of them. I'll add that Airbnb, as you asked, is a great option, especially if you're in a location that visitors want to be. I am Airbnb's biggest fan and write about it a lot. Is your place furnished already? If not, you might have to drop a few thousand at IKEA, but if you could keep it rented to tourists, it's quite possible you make more than the mortgage and help to cover the furnishings expense. And then -- to get to your main concern -- you have the flexibility that you need to move back in. 

You'd need to check Orlando's short-term rental laws to make sure you can do this.

One other thought: If it is furnished, try posting it on the Facebook pages for traveling nurses. There are a few out there (I'm sorry I don't have their names right now) that allow outsiders to post ads on their page. Good luck!

First of all, welcome @Jeremy Clark and congratulations on taking a step toward real estate investing. It can be a powerful tool to build your financial future. And I love Airbnb and other vacation rental platforms. The returns can be amazing if done right.

Beware, though, anyone looking to do short-term should first check the local Airbnb laws. Ashville, North Carolina, for instance has an outright ban on short-term rentals, according to this story. Louisville, Kentucky just passed a law allowing them, but there is a hefty $1,000 fee. (Check out this story for details on what's required there.) Am I missing anything on Louisville, @Erik Hitzelberger?

I didn't look up the other cities. Just wanted to give a few examples of how rules surrounding Airbnb are up in the ... uh, air. Don't let this deter you. Just do your homework first.

Also, @Matt Jordan, @Kalonji Mitchell is spot on about looking at the regulatory issues. That's why if I was ever going to buy a place to Airbnb, I would first make sure the numbers work as if it were a long-term rental or medium-term furnished rental for traveling nurses and the like. If it works for longer term rentals (i.e., even without those huge Airbnb revenues), then you can buy it, rent it on Airbnb, and if ever the city cracks down, then you know you've got that cushion to switch to a long-term rental.