In the short-term rental riches will discuss investing in real estate with a specific focus on short term rentals quick action items to wire. Scale your portfolio I’m your host Tim Hubbard.

Welcome to the short-term rental riches podcast will know things are changing pretty rapidly and one of the biggest changes the people are making is the length of stay for their guests coming in and what happens when you go over 30 days well that guest becomes a resident or tenant and so we want to make sure that we’re taking extra precautions because along with becoming a resident comes more legal exposure and potential risk your property so we want to protect ourselves but there’s an easy way to go about all this and I want to share that with you today so let’s dive right in so one of the beautiful things about having a short term rental and automating everything is that we don’t have to have some of the property when we let one of our short term guests come.

Well the same thing is true if we want to show our property to potential long term guest or resident so anyone staying over 30 days. A lot of locks have the ability to set your codes online so you can do that easily for a potential gas for for a potential resident but before you give a potential resident a code you want to get some basic information from them an application in other words and you can do this pretty easily there are several ways and prior episode we talked about Google forms and all the really cool things you can do with Google forms we can also create one very quickly as an application for potential guests so all of their basic information their social security as far as you want to go with that but I would at a minimum get a copy of their ID and their address and their contact information and now before actually letting them in your property what I would do is make sure you get the form back you’re gonna set a code for you know maybe 30 minutes just so that they can see the property with your digital lock but then have them take a picture of themselves in front of the property with their ideas well and that way you know they’re they’re it’s who they say they are and then they can go right in the one of the cool things about letting a potential tenant view your apartment without you being there is it’s gonna take a lot of pressure off of them back in the day when we always met with leasing agents to rent apartment you know the kind of standing around you and they’re watching you look at the part men and so on and so on and it’s just not that comfortable so this is an easy way to take the pressure off of potential gas and also to be super flexible so its use of the tools we already have our digital locks a Google form now another site that you could use for an application is cozy I think it’s cozy.C. are pulling in the show notes but this is a really cool rent collection tenant screening and lease management system that you can use.

For free online now some of the services cost money like running applications but this will allow you to easily collect rent I use it for some my long term tenants already but I’ll use this for short term guests as well if they’re not booking directly through our internal site which has its built in credit card processing but if you’re collecting rents and deposits use cozy or Google tenant recollection there’s a lot of different sites now but I know that that one works well it can handle the whole lease payment deposit whole process tenet background screening also which is something that’s very important so you could either use cozy to do that or I’ve used another company called clear checks.com so that’s sort of the first process we got a potential guests that it’s maybe converting to a long term tenant or or putting a long term tenant in what used to be one of our short term rentals we want to show to me easily which we can do with those locks and the Google forms wanna make sure we have their information before we let a man if they like it we have a full blown application that we can do through cozy or through Google forms depends on how detailed you get with it but you want to call their references as well it’s so easy to do and then we can handle the leases and everything through cozy and before we actually give a permanent door code to our new resident we want to set some expectations as well one of the things that I put in my lease is a mandatory 30 day cleaning so that also helps your housekeeper keep a little bit of work but it also is a good opportunity to get inside your rental and just make sure that it is how it should be they didn’t have it Pat when they weren’t supposed to and they’re taking care of the place so that’s something that I put in my lease and then also when they first move in you want to make sure that they send you any sort of damage they’ve.

Find within I would say 3 days and have them send you photos or videos that way it doesn’t become an issue later on just a couple notes on the lease that you’ll want your new resident to fill out I recommend getting a digital signatures well because I think that’s much easier but you wanna have same leases you would a normal long term residents signing your lease you wanna talk about the deposit you want to put the dates down there so this will be a shorter period of time you know maybe it’s 31 days but you want to have that outlined you want to put some sort of expectation in there that if they want to extend they need to give you plenty of notice because it is a short term rental and someone could book dates right after their.

Lease expires so you want to put that in there as well but other than that your lease is going to be basically the same as a would a long term normal lease so you can look up on Google and find in your state there every states a little different but I would say the more the better usually and also outlined who exactly has access to the property and so just make sure you cover all your grounds have it as a normal lease sell this price something that you may consider with your short term rentals if things have gotten slow but either way in the long run it’s always good to have the system set up because it’s awesome when a short term gas comes along that wants to stay for a long period of time but it’s paying your short term rates it’s fantastic so just take these precautions and know that if that gas to staying over 30 days that they will become a legal resident which means they have tenant laws and depending on which state you’re in it could be more or less difficult to get that resident out if there were to be an issue and just one last note on all of this.
And this goes for purchasing anything really we want to make it as easy as possible for someone to see our units to apply for them to sign the leases which means sending them and digital lease where they can sign digitally it takes a lot of headache out so they left the email or a scan in and do that so we want to make it as easy as possible but we want to make sure we’re checking all those boxes and we have a good resident that’s in our properties hopefully get some good long term gas and their pain in the nightly run for a long time I hope you do I think you might want to focus more more on that in the future if it works out it’s a great opportunity with short term rentals hope you’re staying healthy and safe and talk to next.

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RELATED PODCAST EPISODES

• Episode 72: HAVE This in Your Lease Agreement (Lease Arbitrage)
• Episode 71: Negotiating a Better Lease Rate for Lease Arbitrage
• Episode 61: Pro Tax Advice directly from my CPA (part one)
• Episode 56: Short-Term vs. Long-Term Rental? How Much Does it Really Cost?
• Episode 04: Uncertain Regulation Changes? Must-Have BACK UP Strategies