Renting by the week can be extremely profitable but also risky. The type of people who rent this way usually can't manage their money for 3 weeks without blowing it on alcohol so that's who you'll be dealing with. Mostly they are honest and hardworking but lower class.
You also need to realize that you multiply the weekly rents by 4.3 to figure what you are getting per year because 4 of the months of the year have extra Fridays. So if you are charging $150 a week you are actually making $645 a month even though most people will think it is $600.
[addsig]
My buddy rents weekly on all of his properties. Basically, as long as you pick a good location (close to a bus stop), you will be alright. You have to remember that the tenants that will be renting out weekly most likely will not have cars because of their money issues. So if your not close to transportation, you might have a bit of a problem.
As far as having tenant problems, he has been pretty lucky so far (he's been doing this for 5 years). Of course he has dealt with a handful of morons but you must expect that. If you have a problem with a tenant it will only take you a few days to get rid of him/her.
If they dont pay him withing two days of the rent being due, he puts their stuff outside and changes the locks.
If you have any other questions, just ask and I will talk to my buddy for ya.
Thank you very much ! The bus stop is 50 yrds away from the front door. I do expect some issues because of the nature of the environment, but it seems to have a very strong cash potential.
If your buddy has any Household Rules or any other documentation like that, I would appreciate it. - **Please See My Profile**
No experience here, however I've wondered if you could have an apartment building that was run by the same rules that hotels and motels are (ie, money by 11:00 am or they can call the cops and they'll kick you out and you won't have to evict). I don't know what the downside would be, but you may want to look into it.
Renting by the week can be extremely profitable but also risky. The type of people who rent this way usually can't manage their money for 3 weeks without blowing it on alcohol so that's who you'll be dealing with. Mostly they are honest and hardworking but lower class.
You also need to realize that you multiply the weekly rents by 4.3 to figure what you are getting per year because 4 of the months of the year have extra Fridays. So if you are charging $150 a week you are actually making $645 a month even though most people will think it is $600.
[addsig]
Thanks for the response, I had taken both of these items in account already.
Do you or anyone else have actual experience in this arena?
My buddy rents weekly on all of his properties. Basically, as long as you pick a good location (close to a bus stop), you will be alright. You have to remember that the tenants that will be renting out weekly most likely will not have cars because of their money issues. So if your not close to transportation, you might have a bit of a problem.
As far as having tenant problems, he has been pretty lucky so far (he's been doing this for 5 years). Of course he has dealt with a handful of morons but you must expect that. If you have a problem with a tenant it will only take you a few days to get rid of him/her.
If they dont pay him withing two days of the rent being due, he puts their stuff outside and changes the locks.
If you have any other questions, just ask and I will talk to my buddy for ya.
good luck
Oh I almost forgot, he does not use leases.
tjm,
Thank you very much ! The bus stop is 50 yrds away from the front door. I do expect some issues because of the nature of the environment, but it seems to have a very strong cash potential.
If your buddy has any Household Rules or any other documentation like that, I would appreciate it. - **Please See My Profile**
No experience here, however I've wondered if you could have an apartment building that was run by the same rules that hotels and motels are (ie, money by 11:00 am or they can call the cops and they'll kick you out and you won't have to evict). I don't know what the downside would be, but you may want to look into it.
good thought hibby,
i am trying to find some expperience and real world knowledge about this.
I have call in to a gentlemen, that has a rooming house down the street, so maybe he can enlighten me.