Why Should I Set My Minimum Stay at 30 Days When I Really Only Want Long-Term Renters?

If you have one or more furnished rentals, and you’re not getting the interest in your properties that you want, it could be that your minimum stay is just too high. While it pays to have lower turnover rate with renters, the world of renting furnished apartments to corporate tenants is very different from the world of long-term rental housing.

If you’re in this market, then you already know that furnished rentals get a higher rental rate than unfurnished, long-term rentals. You know that you can make a lot more money with very little work when you open your property up to luxury corporate renters instead of renting it to a single tenant for a year without any furnishings or luxury amenities. At the rates you can charge for luxury furnished apartments, you’ll make more in three months than you would in a year renting an unfurnished property. That means that you need to be open to shorter-term tenants.furnished apartmentsHowever, you don’t want to make your minimum stay too low, either. Let’s discuss why setting your minimum stay at 30 days is the perfect decision.

Attract More Tenants

First of all, most people traveling for business or relocating to a new city don’t want to be locked into a long-term lease. They want the ability to pay on a month-to-month basis. This way, they can stay longer if their contract gets extended or if they have trouble closing on a house in the area and need a place to stay while they search. At the same time, if they need to go home early or if they find a permanent home before their rental agreement is up, they will have more freedom to move out without losing a lot of money in breaking a lease.

On average, most travelers stay between three and six months, which means that you’re still looking at a fairly low turnover rate when you go with a 30-day minimum stay. In fact, you may only have two to four tenants per year while still consistently collecting rent. This means that you’ll only have to spend the money to clean and prepare your furnished rentals a few times a year, and you’ll get more tenants interested in renting them, as well.

Avoid Short-Term Leasing Litigation

Furthermore, when you set your minimum stay at 30 days, you’ll avoid a lot of legal issues, fines, and fees. Right now, in several cities around the United States, property owners are jumping through a lot of legal hoops to continue to rent their properties as very short-term rentals. Fortunately, though, these do not affect property owners renting their furnished apartments for a month or more at a time. So don’t go below 30 days if you want to avoid unnecessary expenses and potential legal problems.

housing calenderPlus, if you set your minimum at 30 days, you can attract more long-term renters by offering pricing incentives for longer stays in your furnished rentals. People love getting a deal, so if you offer a discount for a longer stay, you’ll likely get more long-term renters, and you won’t have to worry about short-term housing legal issues, either. Now you see why you should set a 30-day minimum stay for your furnished apartments instead of one that’s higher or lower.

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5 Comments

  1. Tina Cardaris
    April 9, 2016

    Yes I understand your point but what if your building HOA requires a 6 month minimum stay? Then what?

    Reply
    1. Kimberly Smith
      April 11, 2016

      I would take the time to talk with your HOA and better understand what their 6 month minimum applies to. It may be that you can only have one tenant during a 6 month time frame so you could take a tenant on a month to month basis you just couldn’t back fill the property if the tenant left before the 6 months. We see these regulations a lot in costal towns like Naples Florida. In some cases the HOA applies these regulations only to unfurnished rentals because they don’t want the wear and tear of people moving furniture in and out of the building.

      Reply
      1. Tina Cardaris
        April 11, 2016

        Wow, I never thought of that option. I will follow through on that idea. Thank you so much for that information!
        Tina

        Reply
  2. Tobias Armstrong
    April 1, 2016

    I had no idea that certain time limits carried different legal issues and fines. I’ve got a property that I’m looking to rent, and i wasn’t sure some of the rules, so thanks for sharing these tips! I’ve got an appointment with a real estate agent tomorrow, but this will help me prep with questions for him. Thanks for sharing!

    Reply
    1. Jeff Richards
      April 1, 2016

      Thanks for the compliments. If you need any assistance with your rental, let CHBO know.

      Reply

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