As it has all over the world, the COVID-19 pandemic has hit this tourist hotspot hard. With so many activities and shows closed, or allowing reduced capacities to encourage social distancing, many of the nightly rental properties are still sitting vacant night after night. 

If you own a rental property that is in a nightly rental program, but have seen reduced numbers in reservations, consider converting your short term rental into a long term leasing property. Making the decision to sign a long term tenant to your unit, may reduce your stress. With lower costs for maintenance and cleaning, along with any fees you may be paying a resort to rent out your unit to vacation goers week by week, having a tenant in your unit will give you peace of mind that some income is steadily being deposited into your bank account. 

Consider these ideas if you want to convert your short term or nightly rental into a long term rental property. 

Renters looking for a place to call home for the duration of a year long lease are going to be looking at the conveniences and functionality of a property. Unlike tourists on vacation who are only looking for a fun, clean and aesthetically pleasing unit for a few days, a long term tenant is going to be looking at the details. 

Is the refrigerator the right size for the number of tenants your unit will most likely house? Does the unit have adequate cabinet space? Does the hot water heater allow for a family to all have a hot shower? Small details such as these would be an inconvenience to someone staying a few days, however they could potentially become a big headache for someone staying an extended amount of time. 

The wants and desires of someone renting are much different than an out-of-town guest, so be sure to take a good look at what features your property has to offer. 

Additionally, clear the space of all personal items that may inhibit a future tenant from feeling like they have the opportunity to personalize the space to make it feel like their own.

Switching gears to convert your nightly rental into a long term rental home can be a little daunting. When guests come to stay at your property while they are in town, you are not largely invested because they will only be there a short time. Long term tenants must be chosen much more carefully. 

It is imperative to do a background check and a credit check. You will also want to get proof of income and ask for rental references. Once you have a signed lease it will be extremely difficult to get that tenant out of your unit, should things go badly. Make sure to do your homework to ensure you are getting a solid, responsible renter. A little time spent up front doing the background work can potentially save you from a lot of headaches later.

Letting people know that you have a house or apartment that you are wanting to rent out, is the first step in finding a tenant. Signage in the window or on the lawn letting those passing by know there is an available rental is only the starting point. In today’s market, advertising on online rental websites is very effective, as is using social media to spread the word. 

If the task seems overwhelming, you could also enlist the help of a property management company. The property manager will do the advertising on your behalf and will use the outlets and resources they already have in place to find and qualify a prospective tenant.

How much should you charge in rent? That’s a good question and one you will need to do some research on to find the appropriate answer. Check online and in the area for other properties in the area to find out what they are renting for. Keep in mind to look for properties featuring similar amenities to yours to get an accurate number. You want to make sure you are competitive in order to get a tenant in quickly, however you do not want to undercut yourself and leave money on the table.

Check into local laws and regulations which apply to long term rental properties. Make sure you are aware of your rights as a landlord, as well as what rights your renters have tenants. These laws vary by state, so this is another area you will want to spend some time researching. 

Your lawyer can probably give you advice on this as well, along with guidance on how to write a lease that will protect your investment. 

If you do not have a lawyer or would prefer to not have the stress of dealing with it at all, a property management company will also be familiar in both of these areas, and can step in for you and execute all of the details.

 

Converting your nightly rental into a long term rental property is a great idea for stability in today’s rental market. Although it may not bring in the same amount of money as nightly, it will provide you with a great opportunity to ensure your investment continues to make money for you.

If you have a Branson apartment or home that you would like to turn into a long term rental property, contact Thousand Hills Realty to answer all of your property management questions. We would be happy to assist you! Call us today at (417) 337-8081.