All Forum Posts by: Natalie Schanne

@Anthony Hidalgo

- Yes I charge more for the more desirable rooms. People pay by size and if the bathroom is private. So for example a 10x10 room with a twin is earning $700/mo plus split utilities on long term lease and maybe $900-1000 on Airbnb. A 12x13 room with queen bed is earning $750 long term. A 12x20 room is earning $800 long term. A 16x16 master bedroom with large closet and private bathroom is earning $1000 long term lease, $1200/mo short term lease, $45-50/night on Airbnb with x days minimum in between leases. Private bathroom bedrooms in shared houses are very attractive on Airbnb because it’s much closer to a whole unit rental but for like 50% off. In my area a whole studio/1br is about $70-90/night.

- For smaller houses, STR the whole thing is more lucrative and easier to manage than renting rooms. Like 2-3 bedrooms definitely just rent the whole unit for like sleeps 4-8.

- I manage myself but I make it clear that I don’t want to be involved in any drama. This has resulted in them avoiding messaging unless there’s a maintenance problem, which, all else equal, is ok.

I don’t have any inside cameras, except sometimes in my private storage basements, so unless someone tells me, I don’t have any idea who tore the couch or clogged the kitchen sink. It can be hard to tell who is responsible and I end up eating some expenses that for a full unit landlord, long term rental you could and probably would definitely charge for.

- The lease is similar to a whole house lease except I change the language to they are renting a bedroom with access to the common area, that their rights to use the kitchen or laundry could be restricted if they’re inconsiderate pigs and/or they would owe fines for cleanup, and that I or my representatives can access the common areas at any time. I have fees for stealing food, causing drama, and overnight guests. I don’t always charge these fees, but they are there so people follow the rules or I have a page to refer to and say Hello so-and-so, you signed agreeing to quiet hours 11-7pm and cleaning up your kitchen sink dishes. Either you can follow the rules or you can move on.

In the past when everyone is on a long term lease, I stop providing common area supplies like toilet paper, paper towels, laundry detergent etc. anything that is usually wasted. (I’ve had people go through 150 load laundry detergent in 1 month and I know it’s because they use too much), but when you have ANY Airbnb guests in the house, you need to provide all those things plus a very good check in / clean kitchen and common area experience or your Airbnb reservation can bounce like “not as described.” And

Usually the price point is so attractive I’m 95% occupied anyway. I find that many people who meet me on Airbnb end up staying longer term with me, whether that’s 3 months, 6 months, 12 months, etc. I convert them to a lease with a security deposit after the first month or so.

On Airbnb, it’s really hard to get paid for damages, because when you file claims against people they give you terrible reviews, so I end up eating a lot more than when someone is on a lease and I have a security deposit and I can charge them for staining the carpet or my towels or whatever.

Overall, I’d say Airbnb is consistently yielding about 20-30% more rent from the same spot, and the guest is usually paying 15-25% more than what I’m collecting. So the room I rent for $750(850) long term is collecting $1050 (35/night) per month fully occupied on Airbnb and they’re paying Airbnb $1250-1300 to rent it.

@Jonathan Feliciano - it depends on your area, but I have made more money, all expenses considered, offering furnished housing.

Most of my clients start as being new to the area and looking for an apartment, then decide that my place is nice and extend. The deterioration to my furniture is definitely a factor that needs to be accounted for.

Short term occupants tend not to treat furniture very well. Oftentimes my “like new” dining room table is scuffed up after a year and a half. Everything I buy except the beds and TVs is pre-owned at 70-90% off retail and pre-assembled.

@Anthony Hidalgo - here’s your answer

Furnish the new build house in Colorado Springs

Collect $5000+/mo

Cash flow

Repeat

Each bedroom and any offices or formal dining rooms that could be “bedrooms” will be furnished with a queen bed, desk, chair, dresser, mirror, lamp, and Smart TV, and rented for $1000/mo (whatever the market will bear plus an equal split of actual utilities and shared common area expenses (tenant owed things like plumbing clogs, purchasing toilet paper, paper towels that will come from Costco or subscribe and save).

Use Airbnb, base postings, Hotpads, Facebook marketplace, zumper, furnished finders as lead generation.

Note- use metal bed frames. My friend bought new ikea wood frames and they didn’t survive nocturnal activities. Each bedroom should cost less than $1000=$400 (new Zinus 12” foam bed and metal foundation frame), $250 (43” tv), $100 (desk), $100 (used dresser and mirror), $50 lamp/hangers/towels/sheets/blanket/pillows.

Set strict strict strict house rules. Anyone who doesn’t want to follow can pick somewhere else. I’ve found 1 person per room, quiet hours 11-7, no pets, no indoor smoking/vaping, color coded shelves and cabinet space, electronic locks and front door cameras really help. If I have to message because rent is late, that person is paying a fee. If I’m involved in any house drama, all involved parties are paying for my time. This has lead to me having 4-6 person houses where nobody messages me except about once a quarter for a maintenance request.

I am sending the cleaner for room turnovers more than I am getting messages from occupants.

@James Carr

1. Trust but verify

2. If they don’t make enough money (3x), they shouldn’t be renting your place. You do both of you a disservice if you approve them.

3. Automate as much as possible! Zelle and other instant deposits are a lifesaver.

4. Communicate clearly! I send my tenants a check out list for what they need to do to get their deposit back in full. It saves me so much wasted time paying for cleaners and such to handle what the tenant was supposed to. I also advise them on monthly/quarterly maintenance (they can do it or I can send someone).

5. Never rent to anyone with a long story. The best tenants I’ve ever had, have never had any (hardship) stories. You pick someone who is escaping a “slumlord” and you will be called the next slumlord

6. Make a google drive with property photos, walk through video, paint colors, etc. SO SO SO many landlords wait until the property is vacant to shoot photos and advertise it, instead of having the great photos and videos in their drive to get their next tenant right away and minimize vacancy. I minimize my vacancy. It bothers me when I see other landlords vacant for long times.

@James Olympia - if you do google street maps walking an area and there are collections of people sitting and/or obvious trash and/or dilapidation, that’s usually D/C. If there are multiple board ups or vacants, usually D/F. Also areas that tend not to gain much value.

The greater the absentee ownership in an area, the also more likely it is to be D/F. Like if out of 100 houses, less than 35 are owner occupied. In A class areas, the single family homes are 70-80%+ owner occupied. Obviously luxury apartment rentals excluded.

@Marqus Freeman - what is a cm? I work in ewing New Jersey.

@Alisha Feaster - when I started out in 2017, I struck through that non assignment clause on the standard contract and I wrote that I was buying it in my LLC and/or assigns. I was thwarted on several of the short sales I attempted though (bank appraisal came in high so the contract price I had signed, they wouldn't sell for. Ironic because that's exactly what it sold for at sheriff sale 6 months later, but I digress)…

I would do the LLC play where I buy it in a fresh LLC and include a clause that I can change it to another entity or LLC for convenience with all other terms remaining the same.

@Brooke Villanyi - I don’t know your finances, but are you financially ok maintaining both properties? Usually a lender will consider your debt to income ratio assuming you will be dropping your current apartment when you buy a house. So the mortgage loan application you signed said xxxx monthly income and xxxx monthly expenses, and they calculated your debt to income ratio off that.

My first house - I bought a 5 bed 3 bath and lived in the basement while I rented out the 4 other bedrooms. After a year I changed jobs and I also rented out a room in someone else’s house to live in (equivalent to a 2 bed apartment) and then rented my bedroom out so I could walk to work (my home was about 50 mins away from my job.) When I found a sweet 2 bed 1 bath upstairs of a house to rent for $600/mo so I didn’t have to drive 2 hours every day, I loved it. I rented my room out for about $800 (so then I was renting all 5 bedrooms). Win win.

@Mark Takeichi - did you check the cold water throughout the house at every fixture, or all fixtures on simultaneously? There may be an issue with your water line in, that’s being mitigated by your hot water heater. So like if my Steel water pipe into my house is restricted, enough water will get to the hot water tank, but I will also have low flow at all my cold fixtures. (Not a plumber, just a thought based on a home inspection).

@Andrew C. - my friends have been very successful “driving for dollars” with business cards stuck in the door with a note on them (example: Jason with blue sky properties business card), paper door hangers that go on the handle, and large yellow or fluorescent stickie notes that could go on doors and be sticky enough to not fall off. They drive to a house that might be vacant or distressed, knock, if anyone answers they talk to them, or if nobody answers they leave one of the above. They note the address and then lookup where the taxes go and send a letter. If you do enough of these, and there’s true distress, probably 1 in 50 becomes a $5000+ profit deal within 3 months. (I don’t know the exact numbers, but I was cold calling people off a foreclosure list and I realized after when I was going to their homes that they were distressed or vacant properties that would have also been flagged with my driving for dollars campaign.)

If you have a local real estate agent friend, you can also refer them the people who would rather list their home for sale instead of selling for “cash” whether to you or a partner.