When I get asked a particular question three times in 6 months, after never being asked it before, it means I have to put it into a blog to answer it well (or as well as I can), once and for all.
Today I was asked "Would you know of any agents that deal with renting furnished condos to corporate people?? Any help or suggestions would be appreciated. thank you in advance."
First I want to see if I can guess the underlying issue...
I think it goes something like this: "I want to sell my place, but I can't break even or get enough for it. So since I'm moving, I want to rent it out, but a regular rental won't cover my mortgage... so what about renting it to corporates, short term, and getting that 30% premium!!!"
I have posted it here, for other Realtors to chime in. Personally, I don't think this solution is a realistic undiscovered gold mine (in part since I was asked it 3 times).
Maybe I shouldn't be talking since I don't do rentals, but here is my two cents...
There isn't easy money in corporate furnished rentals because:
- You would probably have to hire a management company to fill up your unit every couple of months, and they are going to take a hefty 15-20%. (for a 12 month, they get about a full month, and you want them to do this 6-12 times a year!)
- Every month your unit sits between rentals eats into your profits. When you have a 12 month lease, you can deal with a month here and there. But 30 day corporates, if you aren't filled at 90%, the rest is just lost money.
- If you rent furniture to be full corporate, every month unrented is even more painful, since you pay rent on the furniture regardless of it being occupied.
If you DO want to try it:
- Post it on Craigslist under corporate rentals (also see what your competition is ASKING for)
- Rent the furniture AFTER you get the contract.
So if that isn't realistic, what to do? I don't know, but this old blog might help you weigh the pros and cons of selling now (even at a loss) vs renting it in hopes of a better market next year. I'm "UPSIDE-DOWN," What Should I Do? Lose $25k?
- Written by Frank Borges LL0SA
(please report typos)
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