There are many types of rentals out there depending on your circumstances.
The housing market in Durham is continuing to expand. It’s no surprise since we’re consistently named one of the top places to live in the country (REALTOR Magazine, Business Insider, and CNBC).
If you own property here, you may be able to take advantage of this boom by renting a room, suite, or basement apartment.
This article will help define the types of rentals you can consider, understand the expectation of the customers, and how to deliver a 5-star experience to stay rented instead of vacant.
The Share Economy
Not long ago, technology gave rise to the share economy. Ride-sharing apps disrupted taxi fleets. Real estate is no different. Room-sharing apps disrupted hotels (you know the one I’m thinking about).
Customers of the share economy are looking for a hotel alternative. No need for major bells and whistles here, this type of rental is more about service and amenities. Imagine the service you receive from a hotel; now replicate that to fit your space.
Don’t skimp on the cleaning service. This is the foundation of a short-term rental. Make sure surfaces are disinfected, vacuumed, and dusted. Have several rotations of linens for the bed so you can swap out the previous guest’s linens and do laundry at home.
The best item (and it only costs effort) is a notebook with key local information. You never know what your guests enjoy, so throw everything at the wall: local restaurants, attractions, concert venues, running trails, and plenty of maps. Yes, we call have a computer in our pocket these days, but having that extra touch means you’re thinking about the guest experience.
The other key item is a welcome basket. No need to throw $100 at this, but keep it stocked. Some coffee (you have a coffee maker present, right?), tea, bottled water, and a few snack bars go a long way to making a traveler feel welcome.
Furnished Apartments and Suites
Now we’re getting into longer-term needs for your guests. If you haven’t already, check out our primer on rental leases and landlord responsibilities.
Typically guests in this category are trying to bridge a housing gap. Maybe they’re moving here from another city (or country) and want to scope out different neighborhoods. Maybe they’re moving for a job while a partner stays back to sell their current home. Regardless of the situation, furnished apartments and suites are often in demand in the Triangle.
Obviously furniture is a must here, as are basic kitchen appliances, and a washer and dryer. You’ll also want to stock up on kitchen utensils, plates, flatware, pots, and pans. Consider paying for utilities yourself and roll them into the monthly rent. The better prepared you are for everyday needs, the better their experience, and the more the unit will stay rented.
Pro tip: advertise your furnished living space to real estate companies, you’d be surprised how often clients need a space for a few months.
Long-term, unfurnished
This is what most people think of as income property. This spans the range from single-family homes to basement suites with a separate entrance. In this area, your guests are often students looking for private living, professionals moving for a job, or sometimes people who are renting while they save to buy their first home. They’re looking for a blank slate to call their own (at least for a year or two).
More importantly than the other types of rentals, you need to have a lease agreement in place. Tenants (yep, I changed the terminology on purpose) will treat this like their own home – for better or worse. Lease agreements will protect both you as landlord and them as tenant.
Whatever the space is, it will need to be a fully-functioning, long-term housing option. Kitchen appliances are a must. A washer/dryer aren’t necessary, but will definitely help the unit rent faster.
In Durham, this is how most people think of owning an income property. However, that also means there’s the most competition, so it may stay vacant for longer between tenants. To avoid long dry-spells, some landlords advertise as both furnished and unfurnished. You can use a furniture rental company to switch seamlessly between them, depending on the needs of your tenant.
Rentals That Pay You
An empty space above your garage, a suite with a separate entrance, or a second house are all types of property that can pay you. Different properties have renters with different needs, and it’s important to know what they’re looking for. Whichever space you own, now you can be better equipped to put that space to work for you. Exploring rentals can be a good option for you.
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