How to "Medium-Term" Rent your Short-Term Rental

During this pandemic, we have all had to attempt to adapt to a new normal. The travel industry was especially affected, my short-term rental unit included. Airbnb made the call to issue full refunds to guests despite host's cancellation policies. I understand why this policy was put in place as this was a special circumstance, but it was nearly destructive for my finances. We had to find a way to adapt and quickly to avoid paying two mortgages out of our combined earnings. Luckily, we were just at the end of our busy season so we had a bit of a security blanket. We decided to rent our place from May through November in hopes that the ski resorts will open back up by then. Here are a few tips that helped save our finances.

Take Nice Photos: Luckily, we already had some very nice pictures that I took for Airbnb and VRBO. But, I would say that the first step would be to take professional-level photographs that you can use to post your listing. Unless you have the time and the space to store all of your furniture, you'll most likely be renting it furnished. Nicer photos will give prospective renters a better idea of the kind of furniture they're getting. This is especially important during quarantine when we aren't allowed to give in-person showings due to stay at home orders.

Decide on Your Price: You should also determine the price you would like to list at. This is going to be less than you were making short term renting, but hopefully a little bit more than your mortgage. I chose to eat the cost on my monthly HOA fees because it didn't feel right to charge a renter. I am charging the renter for their utility usage and their internet. In the area where my condo is located, there is a very high demand for housing. It didn't take long to start receiving messages at the price I listed it at. It's very similar to deciding on pricing for your short-term rental - look into what your competition is doing and price accordingly.

Post The Listing: I chose to use Facebook Marketplace and a Facebook group, but Craig's List is also a good option for shorter term listings. I got most of my responses through Facebook Marketplace, but the Facebook group for that area was very helpful in determining what to price my listing at and lease terms that other owners were offering.

Act Like You're a Professional: I did create an application and I added a small application fee to the listing to filter out the applicants who may not be as interested. I had applicants pay a $30 application fee through PayPal or Venmo before I would list the unit as pending. You can use the application fee to submit a background check and screening if you think it is necessary. I had my applicants submit personal references and references from previous landlords. I did take the time to actually call them. I no longer had the security blanket of Airbnb's host protection program. In order to trust someone with my space I did need credible references. Another thing I decided to require was a security deposit. I chose to charge a half month's rent as I thought that would be sufficient for any minor damage caused. I also chose not to hand over keys until the deposit and first month's rent were paid. I'm lucky enough to have a background in property management so I do have a basic understanding of the rental process. Fair housing laws are still in play for smaller landlords so make sure not to discriminate against anyone. Even if this is the only property you're renting and it's the first time you're renting it, it is important to make the renter think you're a professional and that you have it together. This starts at the very first interaction. Act like a professional and they'll treat you like a professional.

Screen, Screen, Screen: The biggest thing is making sure you get the right person into the unit. Someone that will protect your investment. Make sure you do the best you can to screen the new tenant and to protect yourself. Don't just rent to the first person to message you, but don't discriminate against applicants either. It may take some time to find the right person, but a vacant unit is better than a trashed unit in my opinion. I have a lot of valuable items in my condo that are going to stay there. Make sure to document everything before the new tenant moves in. If you are going to retain any of the security deposit for damages, the burden of proof is on the landlord. I took pictures of everything before I handed keys over. I also had the new tenant fill out a check in form documenting the state of the unit upon move in. I will use this when they move out to determine what I will do with their deposit. Make sure you have the new tenant sign a lease as well. This could really help you if things do go south with your new tenant.

Document Everything: Upon move in, I provided the new tenant with a check in sheet, their signed copy of the lease, rules and regulations from the homeowner's association and a thank you card. I also added a few cleaning supplies as a move in gift as they are in short supply right now. A bottle of wine would work just as well in normal circumstances. Make sure to keep their check-in sheet and signed lease on file and store the pictures you took all together. To deduct from a security deposit, the burden of proof is on the landlord, so if you want to keep any of that money for repairs, you'll have to make sure you can prove it was that tenant who caused damage.

I did choose to rent my condo furnished, but there were still things I wanted to store at my own place to give the renter more space and a chance to make it their own. These things included: sheets, towels, pillows, cleaning supplies, recreational equipment, books, games, etc. It was more stuff than I realized, but it was definitely worth it. A long term renter needs a bit more space than a short term renter and they'll definitely have more stuff. They don't need their closet filled with extra pillows; they would prefer it filled with their clothes.

I am saving money on a lot of short-term rental expenses such as: paying the cleaner, supplies and mileage. Even if I wasn't cleaning the unit every time, I was spending a lot of time and mileage to drive up there for other things. This tenant will supply their own cleaning supplies, toilet paper, coffee and snacks. That will no longer be coming out of my earnings.

Good luck on your renting! Hopefully everything goes back to normal soon.