Don’t AirBn-BUST:
Turn Your Short-Term Into a Long-Term Rental

Key Takeaways

Research Local Laws:

• The hosts stress the importance of understanding local landlord-tenant laws, which vary significantly by location. They recommend utilizing resources that break down these legal requirements by state as a vital first step for landlords.

Evaluate Property for Long-Term Rental:

• Landlords are advised to assess their property’s amenities and compare them with similar units to determine competitive monthly rent. Tools like rent estimate calculators are highlighted to help establish appropriate pricing, acknowledging the financial differences between short-term and long-term rentals.

Assess Profitability with a Rental Property Calculator:

• Jonathan and Krista discuss the use of rental property calculators that allow landlords to input various costs, including HOA and property management fees, to evaluate the profitability of transitioning to a long-term rental setup, especially in stringent markets like New York City.

Prepare the Property:

• Ensuring the property is in top condition and complies with local codes is crucial. The hosts recommend drafting a comprehensive long-term lease agreement, which differs significantly from short-term contracts used on platforms like Airbnb. They suggest using lease-building wizards to create tailored agreements that include necessary disclosures and terms.

Find and Vet Tenants Thoroughly:

• For long-term rentals, thorough tenant screening is essential for establishing stable and reliable occupancy. The podcast highlights services that provide comprehensive screening at no cost to the landlord, covering areas such as credit history and eviction records.

Manage the Property Efficiently:

• Effective property management involves regular communication with tenants, maintenance handling, and document organization. The use of property management software is recommended to streamline these processes and enhance direct communication and document organization.

Benefits of Long-Term Rentals:

• Jonathan and Krista outline the advantages of long-term rentals, such as steady income, reduced utility and maintenance costs, less frequent cleaning, and the absence of furnishing needs compared to short-term rentals. They emphasize the stability and ease of management that come with long-term tenancies.