All Forum Posts by: Mark Berge

Can I ask why you want to rent out a short term rental instead of buying or renting out a whole unit that you already own to a tenant on a one year lease? Short term rentals can be a lot more work. You need to clean the unit, change the sheets each time a guest checks out. I have a long term rental and have a great tenant who pays on time and takes care of the place. I just have to do repairs now and then. 

I can just speak about Hopatcong. If you are going to operate a short term rental you will need to fill out an application with the boro of hopatcong. If they approve it, you can do it. Otherwise most towns like Roxbury, Landing everytime someone moves in you will need to have the fire department inspect the property so you can get a c of o. If you don't do that and the neighbors complain like it happened to me, the city will knock on the door to see what's going on and give you like a $100 per day fine which I paid. I then decided to rent out the house on a one year lease. Best thing I ever did.

Find a bad house in a good area, better than a bad area with guns and drugs. Fyi.

I agree with Robin, my first deal was a single family house in a good area with blue tarp over the roof and a noisy but working oil boiler. It was a reo for a good price. I was able to buy it, move into it when I closed and cleaned it up and got room mates and airbnb guests. After about 6 months one of my agents found another fixer upper about ten minutes away for a really good price. The owner haden't paid their sewer bill for two years and every room that had water had mold and slow water leaks. Was able to buy it, clean it up and move into it and rent my first house out on a one year lease. The tenant paid on time, took care of the place and moved out after three years when he bought a condo.

Fast forward three years, have been looking for two plus years for more fixer uppers and haven't had any luck. Good deals come on the mls and are under contract in a day or two. Sigh. May have to look further out.

Have you any experience of renting out rooms or the entire house? You have to find a good area, screen the tenants, do repairs, collect the rent, if they don't pay have to go after them, etc.

I would start with one rental property and see how it goes from there, that's what I did and it has worked out. I used to advertise and screen roomates with an application for many years. It's all about getting the right tenant in there, a bad apple can cause you trouble but it goes with the territory, that's how you learn, by doing.

 I would have shut off the main water valve so no water can enter the house. Or put a sign on the toilet to not use, out of order.

I have told landlords when I was renting a room, etc. that if he had an extra bedroom in my unit that I would screen the tenants. He would say yes and give me a break in my rent. Before that, he would let anyone rent the bedroom and there would be problems like he would play loud guitar and when I asked him to keep it down, he threatened me with a baseball bat.

When I would screen roomates, I would put an ad somewhere, they would fill out an application, I would check there references, and never had a problem. Most landlords put an ad somewhere, don't have them fill out an application and wonder why they have problems with the tenant, not paying after the first month, trashing the place, etc.

I unfortunatly have not been the best when I put an extra bedroom on airbnb, they rent the room (no application) and then they want to rent it month to month. I have done this twice where I didn't have them fill out an application and have had problems. Fortunatly when I asked one guy after renting the room for a month (he was getting on my nerves) to leave he did. 

This time a girl rented my extra bedroom on airbnb, she stayed a month, then asked to rent it for $850 per month while she looks for a job and a new apartment. Fast forward, she has been renting the room for nine months and gets on my nerves if there is a problem. I have asked her if she can find a new place and she says that she can't find one. Evictions I have been told can take 8 months here in NJ, don't want to go that route, so I just stay out of her way.

I also have a rental property that I bought and rehabed and my re agent got me a good tenant who had a good job and he took care of the place and paid on time for 3 years. He bought a condo after his dad who was living with him passed away.

Then I cleaned up the house, my re agent got me another tenant and so far is paying on time, I was able to get a 14% rent increase over the previous tenant.

This is not a passive income business I guess unless you pay a property manager to do the work for you, they probably take 10% of the rent for that work I think.

I only have one rental house here in North Jersey, it has central heat but no central air conditioners. Tenant has to supply their own window a/c. I have found that anything that the landlord supplies and is listed in the lease I am responsible for if it breaks. Not having central a/c means another thing that I don't have to fix if it goes bad. 

I really prefer one year leases, less hassle. I usually only host on airbnb if I have a spare bedroom in the house that I live in to bri ng in extra money. It's a crapshoot, sometimes you get good guests, other times they bother you with requests all the time. Other times they check in, they go outside and at night come back. The next day or two or three they check out and I give them a good review and they give me a good review. I have to clean up the room, wash the sheets, towels and get the room ready for the next guest.

In my area, there is pushback from the towns for renting out a whole house. In Roxbury, everytime a tenant moves in or out (1 day, or 2 years) the city wants a new certificate of occupancy done or they will fine you $100 per day, it happened to me, decided, rent the whole house out on a one year lease.

Hi Scott, thanks for the input. I don't plan to kick her out since she pays on the 1st, cleans up after herself and is gone during the day while she says that she is looking for a job at the library. I will just see how it goes but am kind of happy to get that check every month for no work other than sharing the common areas. Long term though my plan is to rent this house out after I rehab it.