The Things I’ve Learned While Running a Month to Month Rental
I can’t imagine this thought hasn’t crossed your mind. I feel like if you’re here…the thought has crossed your mind 😏
“Where do I even start with a furnished rental?”
I’ve been wanting to test out the different types of rental markets to see which one I liked best, so that’s exactly what I did. And here are my findings - hopefully saving you some pain points along the way.
But where do you even start? How do you find tenants? What do you charge? What does this whole process look like?
Let's dive in.
According to a recent study done by 2nd Address, Month to month rentals are seeing average price of $136/night with an 87% occupancy rate and less than 5 hours a month of work.
They can be minimal work as long as you set them up for success.
First things first - Let’s define short term rental. I’m talking about month to month rental - 30+ days. They are usually furnished with the basics as far as amenities.
Bedding + Pillows
Furniture (Living Room, Dining, Bedrooms etc)
Towels
Cookware + Dishes + Utensils
Internet
Cleaning Supplies (vacuum, mop, etc)
Anything extra you’d like to add is great! Crock pots are popular, hair dryers are handy! Granted your renter will more than likely be coming with some of their own things.
Prepping the house was actually a lot more work than I anticipated. I would give yourself PLENTY of time to allow for shipping delays and scheduling changes. Whatever that timeline looks like for you - It took me about 30 days to go from not even close to ready to renters moving in.
After your property is prepped - you need to secure your renter!
I used two platforms to advertise my property - Zumper + Furnished Finder.
I really wanted to stay off Facebook as a rental platform because well….have you seen some of the comments?! 🥴
Furnished Finder was a total pain to get on and I really only got a few leads.
Zumper took two minutes and the majority of my leads came from there. Would 10/10 recommend Zumper.
I would definitely recommend professional photos + spending time jazzing up your advertisement. Maybe even a walk through video. Similar to listing you property for sale, you have .8 seconds to capture attention and with 44% of the housing in Billings being renter occupied — that .8 seconds counts!
I had my tenants fill out applications and I told everyone I would review on a certain date. It was a little overwhelming at first so definitely be prepared and I would give a review date – especially if this is your first one. The breathing room was nice.
They also filled out background checks. There are many resources online for this - just make sure it’s a reputable one.
When it comes to paperwork, I’m not one to mess around. I had all my tenants sign full blown leases + send in a security deposit. I chose to go pet friendly (dogs only) so I wanted something just in case of accidents. I recommend getting with your attorney or subscribing to a legal platform that has leases that will protect you. Communication and boundaries are kind.
This lease should outline the terms of the agreement, rent amounts, what happens if it’s late, what is the tenants responsibility vs the landlord – all the good things. This can evolve over time. Just make sure you have something in place.
Another thing to touch on is how are you going to collect payment? I went old school and asked for checks. I’m probably not going to do that any more - ACH seems so much easier. I also know that some platforms (Zumper) allow your tenant to pay right there. I think I will look into that in the future.
When it comes to check out & security deposit, I recommend doing a full walk through a few days prior if your tenants are okay with it. That way you can let them know the expectations and what will need to be completed to receive the security deposit back.
I’m of the camp that you’re protected legally but you’re also all humans. Set each other up for success.
Last but not least.
Don’t forget to have them change the furnace filters. 🥴
I learned this one the hard way. Middle of the night, dead of winter, the furnace stops working. Never in my mind did I think to have them change the furnace filter 🤦🏼♀️
Luckily it was a pretty simple fix, but I hope I can save you at least one heart attack during your rental journey.
Now go forth and be the landlord we all wish we had!
