We have a 2bd, 1 bath apartment in the basement of our home in Portland, OR. Because of how the home was built, the basement has its own driveway, entrance and is completely separate from the upstairs (no stairwell even!) However, the whole house shares utilities and this is one of the greatest challenges with the long term rental because my furnace and hot water heaters are in the middle of the basement apartment and local laws require me to provide a 24 hour notice of entry for any servicing needs (unless there is an emergency). While we’ve been lucky to quality tenants, we’ve also never had a tenant extend their stay longer than the initial contract of 1 year. This turn over rate has me wondering if I may be better suited using the apartment as a short term rental.
Here are some of the factors I’m using to weigh the decision.
Short term Pro’s
1. Easier to schedule maintenance and care for the property.
2. Noise from our three children is not as big a concern.
3. Flexibility in how I use the space.
Short term Con’s
1. Unstable/inconsistent income
2. Cleaning the apartment after each guests
3. Managing guests expectations before, during and after stays
Long term Pro’s
1. Steady consistent income
Long term Con’s
1. Maintenance needs require more coordination with tenants
2. Turnover is getting old, searching for finding quality tenants that we’re willing to have on
our property for extended period of time.
3. We have three noisy children!
What other factors would you recommend I consider before making a change?