Brad Christy

Guys,

Since others have asked similar questions here, I guess it's the place to ask....

For those who have or have had rental properties:

So, we've got a house on Cumberland. We inherited it from my dad, along with the mortgage and a LITTLE bit of money. There was not enough to clear the mortgage, so we've been using it to supplement the costs of retention, but it's not gonna last until we are ready to retire. Being as dad built it for entertaining, it suits itself well for vacation rental, and we're very certain it would do well, with its prime location, fantastic view and other amenities. We've been contemplating putting it on some level of rental program since taking survivorship to facilitate the effort. I'm not so much looking at it as an investment or for the income potential. I just want it to support itself, and maybe pay itself off by the time we are ready to move there permanently. The problem is that it's also OUR vacation home, and eventually our retirement home. I'm more comfortable with it, but the wife is a little wiggy about strangers sleeping in her bed. there's also the fact that we still have the "nice" things that dad left us. Obviously, heirloom-type stuff would have to be put away; we get that. But there's dishes, a liquor cabinet, etc.... We can easily make the necessary modifications that most rental homes have; locked closets/cabinets, etc. We really don't want to feel like we're IN a rental when we go to OUR home for a week/weekend at the lake, but we also don't want a bunch of strangers trashing the stuff we intend to use ourselves. We know and accept that there is GOING to be wear and tear and repairs over and above that which would occur if we don't rent it out. The question is.... Is it possible to dance the line between a private residence/vacation home and a rental home?

Thanks. Brad.

underpsi68

I think it all depends on how much you and your family can stomach?

I'm funny about someone sleeping in my bed also. It would really have to be worth it to justify the west and tear and bs that will go with renting.

Brad Christy

Under,

Have you done anything similar?

A friend of my dad's, who has had rental properties on Norris told me that he'd advise against it, but also said that, given the choice between renting it and selling it, my dad would tell me to rent it.

We've got a couple anchors keeping us in Dayton for the time being. While my wife, a BSN, can get a job pretty much anywhere, I can't move my business down there. There just isn't any infrastructure for machining. It would mean retirement for me or a second career, one of which ain't in the cards yet, and I really don't relish the idea of the other.

I'm more of a "means to an end" kinda guy, and my wife is not so much. I would be willing to put up with a LOT to keep the house. Sentimental value aside, there's a lot to love about it. There isn't much I wouldn't do to keep it. A fresh set of sheets every week and a new mattress when we move in for good seems pretty reasonable to me. We've gotten in the habit of renting houses when we go on vacation, rather than a hotel, and I've become much more aware of my surroundings, so to speak, since beginning to consider being a rental owner myself. I've taken some notes on what I've seen in these homes, a couple of them really seemed like the owners used it themselves. I guess what I'm after is, for anybody who has done this sort of thing, how did you make it work? How did it work out?

Thanks. Brad.

ICDEDPPL

If you don`t use it all that much rent it.
Make it into a rental unit by taking all the stuff you don`t want ruined out.
Make a owners closet.
You want bills when you retire or you want the place payed off?
We put a cover on the mattress and have our own bedding when we go there.

Sydwayz

Take EVERYTHING even remotely important out of it. I have friend with rentals in the the OBX and renters take the dumbest ****. Small appliances, curtains, bedding; the stories she tells are ridiculous. She has gotten to the point where it just turns into an adventure every time she goes down to use her house, figuring out what she needs to run to Kohls, Target, and WalMart for; and she prices her rental cost accordingly. Also, completely sealed and waterproof mattress covers are paramount. They make some that are textile now, and don't sound like plastic kids sheets.

Brad Christy

Sydways,

Yeah. That's what I hear. And that's crazy, as we, as renters, are the exact opposite. My wife almost makes it to the point that, after we check out, the cleaning service can play cards while the laundry finishes up. We actually left a $5 bill under a pile of what was once a glass that we FOUND broken in the cupboard. If only all renters were like us....

Like I said, we've rented a couple houses where it was obvious the owners used it themselves, and left most of their stuff there (there was a locked closet in the master bedroom that I'd assume contained their clothes). One of them had "libraries" that essentially indicated what the couple did for a living (commercial pilot and real estate). There were picture montages on the walls of their many adventures across the planet, that seemed to coincide with the libraries. There was an herb garden in the back, a fully stocked pantry, and a note giving permission to use them. My question is, how does one make it work, in respect to screening prospective renters, to keep the scenario you describe from driving you to close up shop.

Thanks. Brad.

AllDodge

I have a Vac rental on Dale Hollow but we live here and only use other place as rental. Keep price high, don't use AirBinB, only VRBO and Houfy. Vrbo is 25 a night higher then direct and folks still book via vrbo

Most are repeat customers and book direct via text. Make 16 to 18K a year so it pays for it self and is only used 5 months a year.

Brad Christy

AllDodge,

Are you saying to price-control the clientele? How do you control groups sharing the costs, like the frat party kinda thing?

Don't know if we would contract the management out or handle it ourselves. We've discussed those options. We're 180mi away, but we have family fairly close, one has offered to do the housekeeping/flip between rentals (for a fee). My wife has seen many people offering rentals on various FB pages. Don't know how that's worked out for them, good or bad.

Not to pry, but is that total revenue, or profit after costs? If it's none of my business, all good.

Thanks. Brad.

AllDodge

Total revenue and there is no mortgage
I don't want mine rented all the time. Many places around the lake are rented much more then mine, but they also have more maintenance

Vrbo side rent is higher because vrbo changes more. I could have a rate based on how many are staying but then I have to check and don't want to do that. I ask for Govt ID and be at least 25. There is always a possibility that someone's Dad will book the place and all the kids show up, just part of the risk. My average count is around 8, and it's a 4BR 2B with 7 queen beds, 14 max.

Have had 2 groups which took more time to clean up in the 8 years of owning.
First was 6 golf buddies which there was to much alcohol (what could go wrong) and someone peed the bed. Good thing is mattress protector but otherwise no damage. Lost their cookies outside on the grass

Second was what we call the Gatoraid bunch. Two families with small kids and parents didn't watch the kids. There was spills of the sticky mess under the bed and couch.

Knot 4 Me

Just be willing to do an interior refresh once its rental-life is done. Really no way to accurately vet renters up front, only on the backside as to whom you would not rent to again. As stated above, be ready to replace provided items on occasion. I've rented at LOTO from the same gal for years and I'm constantly having to buy kitchen items to replace those that prior renters have taking or broken and thrown away. Normally it is minor stuff like a can opener. Last year I had to buy a showerhead! WTF?! Who takes a showerhead?!