Vacation rental the row house?

[Anonymous]

We are thinking about moving and keeping our rowhouse (which is in a great tourist location close to the metro on the hill) as a vacation rental and putting it on VRBO. Any advice anyone has in regards to this would be greatly appreciated. Are there DC regulations pertaining to this? I don't expect our neighbors will love the idea and may make things a little tough if we don't have our ducks in a row.

[Anonymous]

Nothing huh?

[Anonymous]

I'm not sure why you would do this instead of renting it out to long-term tenants. VRBO seems more risky with much more hassle.

[Anonymous]

Well, the money.

[Anonymous]

You would be liable and could be sued if there was any crime . You would have to fully disclose the dangers of living around the Hill lest someone think they can just go anywhere.

My cousin (22) did not listen to me when I told her not to walk in Anacostia. She said she had some really scary stuff said to her and felt threatened for the first time since she's been in DC. And she goes to Galludet.

[Anonymous]

I think as long as the area is safe, you don't have to tell them where bad neighborhoods are. They're adults.

[Anonymous]

OP here, It's as safe a neighborhood as any in DC, but very kid and tourist friendly. I guess anyone can sue us, but I don't think we can be held liable for a crime unless we haven't done something to secure the home properly? We would be no more liable than any renter in this scenario would we?

[Anonymous]

Renter = landlord

[Anonymous]

Anonymous wrote:Well, the money.

How do you know how much more money you could rent this per week to vacationers than per month for a year or more to a traditional tenant? Are there comps for such things? Would it be worth the extra hassle of signing an agreement every week? You would have to advertise constantly on travel sites because I don't think this is a market where people would automatically think to check VRBO.com. Also, not to be underestimated are The DC laws which are incredibly favorable to tenants. What if you had someone who didn't want to leave?

[Anonymous]

Anonymous wrote:I think as long as the area is safe, you don't have to tell them where bad neighborhoods are. They're adults.

Tell that to the lawyers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Well, the money.

How do you know how much more money you could rent this per week to vacationers than per month for a year or more to a traditional tenant? Are there comps for such things? Would it be worth the extra hassle of signing an agreement every week? You would have to advertise constantly on travel sites because I don't think this is a market where people would automatically think to check VRBO.com. Also, not to be underestimated are The DC laws which are incredibly favorable to tenants. What if you had someone who didn't want to leave?

+1. I had family who did this, although not in DC. with the high rent in DC, it is hard for me to believe that you would make more money by renting to tourists. ot at least it would cost you a lot of work. this family member first rented the place to a renter for a year. cleaned up the place and rented it, and collected the rent every month doing nothing. renter moved out after the lease ended, and family member decided to rent to tourists. it was really hard. she had to completelt clean the place (and sheets, towels, tablecloths) after every staying (even if the guests had spent only 3 ir 4 days - she had a 3 days minimum stay, and it is not that easy to always find people for a week). she had to be there at the time the guest were arriving (and with people coming by airplane sometimes she had to wait hours because they were late) and when they were living. there were months (November-April) when she did not have almost any guests (= no money), she had people cancel at the last moment, she had people who left ahead of time without paying. also, a long term tenant usually takes good care of the house, but random guests staying a few days at a time may not (and you need just one or two slobs and the damage may cost you more than what you get as rent). she stopped doing it because the hassle was not worth the money (which, at the end, was less than what she got from the one year tenant)

[Anonymous]

You are also renting the house furnished and outfitted with kitchen accoutrements, yes? How are you going to make sure all your stuff is still there after people leave?

[Anonymous]

A long term lease would be a lot less headache.

We moved and kept our Georgetown rowhouse. Very easy to rent multi-year leases to professionals.

A vacation home would be more people, more transactions and a lot more wear and tear.

BAD idea.

[Anonymous]

Beyond the points everyone else brought up, I would think of your current neighbors and how it would effect them. They will hate you.

[Anonymous]

OP, we own many properties in "desirable" areas. Some rentals. Honestly, get as long term renters as you can. Also get a security deposit - refundable if they don't defy the terms of the contract. We feel like we are constantly doing paperwork, but really the attorney and tax person do most of it. If you have at least one of each on hand (retainer) for any stupidity that comes along, you will be fine. It also helps to get renters who are more mature (not 20-somethings) and not totally helpless (i.e. if they have a leak or something). GL.