All Forum Posts by: Pete Peterson

I'm looking to lease my residential home (unfurnished or partially furnished) for 3 months. If they wish I would agree to offer them the option to extend to up to 4 months. Will rent for about 9K per month. I would be collecting 18K in security deposit. 

I've done a year lease before. But for a short-term lease would you do anything differently? Would you still do the same screening (credit check)?  And would you still transfer utilities and cable Internet / TV to their name?

Yeah I know it's a tight niche market I'm dealing with, but people do home renovations in my area and need temporary homes. Others pull into town and want to check out the area before buying a house. And actually there's very very few LL's who will even do 3 - 4 month rentals on Zillow at least. Even the AirBnB / VRBO homes in my size and area are scarce or over-priced. 

I would look on VRBO.com and AirBnB to see how many reviews the competitors in your area are getting. Then compare the frequency of reviews to an area that you know has high demand. Occupancy rates can vary greatly by location. If you are buying a place strictly as a rental property you really need to take a hard look at occupancy rate because it can make or break you. Some areas in Los Angeles have 90% OR's, while others have 5% OR's. 

Are you in a prime location, walking distance from where tourists all want to hang out at (stores, the beach)?  Do you have a view? These are the things tourists look for.

Why deal with that kind of headaches? If you love real estate then invest in an index fund like VNQ. Better yet just invest in stock and bond index funds. Diversify. Then you don't have to do a damn thing. Then you could spend your time as a realtor making more money.

 How much money do you need to spend to get started up? Beds, bedding, towels, etc. 

And when you search VRBO, how many reviews are other places in your area getting? Do they have 1 review per year or 10 or 20? That will tell you what the supply and demand situation is like. 

People on vacation often want a great view and/or walking distance from stores, the beach (or Ski resort or whatever it may be that attracts visitors). Does your place have that to offer?

I know of someone who has a 90% occupancy rate for several properties in Hollywood. It's raining money if you're near Hollywood. 

Out here in Pacific Palisades I estimate the occupancy rate is about 5% - 10%. Of course there are less affordable homes and it's basically people who want to be near the beach during the summer time.

Seems to me that guests would regard using VRBO as "safer" than PayPal. 

I've actually been to AFM. 2 weeks of opportunity. 

Ooops! Don't know what I typed 8K. I was told about 15K per month during summer, but I think it would go for a bit less. 

Is there a way to accept credit cards (through VRBO) without opening up a merchant bank account and all of that? How do people usually do it?