Tiny Houses – Will the Movement Take Off in The San Diego Area?

If you’ve watched HGTV for a length of time you may be familiar with tiny houses. These are homes that are typically under 250 square feet, built on wheels or can be constructed for tenants in any backyard in the San Diego area.

With the housing crisis, it makes sense to build more tiny homes because each tiny home could provide space for up to two people but the reality is that environmental regulations and building codes may stop tiny homes from taking off in the San Diego area.

San Diego Housing Panel Gives Tiny Homes The OK

As of October 2019, tiny homes are now approved in the San Diego area. The panel recently voted to approve tiny homes in San Diego as long as homeowners choose to follow a long list of city regulations and their requirements.

“I think it’s a good idea,” said Councilwoman Dr. Jennifer Campbell. “Let’s do it.”

– San Diego Union-Tribune

San Diego joins a long list of cities in California, like Los Angeles, who have recognized the benefits of approving tiny homes and they now are approving their construction in cities across California and nationwide.

Good News for Local Homeowners and Investors

Besides benefiting the local housing market by bringing affordable housing to the market, tiny homes also immediately benefit homeowners and investors because they can be built within 30-45 days (or sooner), are less expensive to build than traditional granny flats and can rent for $900 per month in some areas.

Investors who want to get more ROI out of their existing properties will be thrilled to be able to consider tiny homes as another source of revenue for their portfolios.

Contact GoldenWest Management

To learn more about the San Diego rental market, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.

Short Term Vs. Long Term Rental – Which One Is Better?

As a property owner one of the most important questions you need to ask yourself is if you are going to target short term or long term renters because each represents a different segment of the rental market and comes with its own challenges.

In today’s article we will break down short term vs. long term rentals so you will know which option is right for you.

Short Term Rentals

Some of the obvious pros to short term rentals include the fact that you could use the rental property more often during the year as a vacation home since it won’t be occupied for 365 days and you could also enjoy a higher rental income as well since rentals especially in big cities like San Diego, Las Vegas or Phoenix can rent for more money during peak season.

The cons of short term rentals include the need for more furnishings and upgrades since if you’re marketing your property as a vacation home you will need to keep upgrading it so it stays attractive to buyers.

Short term rentals aren’t always the best option because they’ve come under heavy fire in the last 12 months since homeowners don’t like the instability that they can bring to neighborhoods and many companies don’t screen their short term tenants so neighbors don’t really know who is living in the same area as them.

Long Term Rentals

It’s been our experience that long term rentals are always better, especially for the Real Estate investor because long term rentals produce stable, consistent cash flow which helps investors pay their bills, there’s no need to furnish the rental, and long term renters also help to protect the value of the Real Estate investment especially when proper screening of tenants is done since the right tenant is usually responsible and will maintain the property.

Some other benefits of long term rental properties include:

1.       The income stream is often more due to the fact that vacancy rate is much lower

2.       This reduction in “Peak season rentals” is also offset by not having to pay for utilities and regular turnover maintenance (cleaning, high wear and tear)

3.       Short term renters are NOT screened anywhere near the level of long term Tenants. Usually there is no credit report, background check, rental verification, etc…

4.       The laws are still very “occupant friendly” when it comes to vacation renters and so its difficult to just “throw out” occupants.

5.       The guidelines for Tenant eviction are very clear and thorough as it relates to long term vs short term Tenants

6.       Short term is great for seasonal only; but the vacancy rate is normally as much as (6) months or more than 50% so unless you are enjoying the property or living there when its not rented, its not a great steady investment

7.       Management fees or rental fees are much higher with short term. VRBO ex charges 10% to find a tenant, and if you have a professional vacation manager, they charge as low as 20% all the way to 40% in some areas.

8.       Long term management fees are closer to 8-10%

Learn More about Short Term Vs. long Term Rentals

For more information about short term vs. long term rentals, or to get property management for your rental properties contact Goldenwest Management today by calling us at (866) 545-5303 or click here to connect with us online.

 

 

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