Renting Out Your Home Short Term

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  • Leaving house vacant for a year to avoid becoming landlord

    – Oct 18, 2019
    (22 replies)

    I'm helping make a decision whether the risks and costs associated with becoming a landlord in Berkeley are worth it as opposed to leaving a house empty for a year.  The place will only be empty for a year and the owners will absolutely need to move back then.  I heard scary horror stories about people's experiences being landlords in Berkeley and that getting tenants out after a lease is often tough and very expensive if they don't want to move at end of lease and that evictions take forever etc.  Many recommended avoiding becoming landlords at all costs!  It seems like a waste (and expensive, due to lost rental income) to just leave the place empty for a year, but if the horror stories are true it seems that any income will potentially be eaten up by damage and attorney fees and costs to rent alternative housing while dealing with evictions, etc.  Anyone who was away from home for about a year or slightly more made the decision to not rent out the home and instead leave it vacant to avoid these issues?    

    Oct 18, 2019

    I had a similar situation in San Francisco. I chose to do short term rentals. Although in retrospect I think that I’d try to find slightly longer term renters such as a professor coming for a sabbatical, short term corporate housing, or a family doing a house remodel. I’d probably leave a buffer of 1-2 months between the last renter’s last day and your return day. 

    hey there --

    we didn't know this at the time (only found out after our former tenants sued us for evicting them to return back to our house as owner-move-in, and had to talk to a lawyer, etc.) -- but there is a clause in leases that specifically states that owners have previously occupied home and will have right of return. I don't remember the exact language. Ironically, we had asked the property manager if we should disclose that we might (it was uncertain) return to our home, and she advised us against it as she thought would impede rental. But, if you find a short term tenant (some people are looking for low commitment leases) -- you could have this explicit in your lease. Leaving a house empty sounds unfortunate and risky. Sorry don't know how that clause/option is worded, but sure that you can google/do some research to clarify.

    I also want to know the answers.

    Two ideas: rent to a family who is renovating their own home. They'll be ready to move out when their home is ready. Rent to university-associated people who will only be in town for one year.

    First, I highly recommend consulting with a landlord attorney ASAP.

    Second, I would suggest you familiarize yourself with Berkeley Municipal Code 13.76.130.A.10 (which describes one particular "just cause" eviction, reproduced below), as well as the new statewide rent control rules coming into force in 2020.

    I don't believe there is a way to guarantee that tenants won't fight hard against an eviction or cause damage, but there does seem to be some landlord rights available. Again, speak to a local landlord attorney ASAP (I am not one).

    13.76.130.A.10.    A landlord or lessor seeks in good faith to recover possession of the rental unit for his/her occupancy as a principal residence, where the landlord or lessor has previously occupied the rental unit as his/her principal residence and has the right to recover possession of the unit for his/her occupancy as a principal residence under an existing rental agreement with the current tenants.


    13.76.130.A.10.

    Yes, we left a house vacant in Berkeley for over a year for the exact reasons you describe. For just one year, I don’t think the risks of renting outweigh the benefit of rental income in your situation. Unfortunately. 

    Under California law, even Berkeley rent control,  homeowner can rent out a room in their room to a "Lodger".As long as the owner shares common areas with the lodger, the lodger is not an legal  tenant. The owner may select the age and sex of the lodger, and can make the lodger move out at the end of lease, or even just with proper notice.

    This might be an option for your friend, since no good cause for eviction is required if the lodger doesn't want to leave.

    Your friend is prudent to be careful.

    Rent it out to a professor on sabbatical or some graduate students who will need//want to leave.   Go through Cal Rentals or SabbaticalHome.com or the like.

    I don't have advice on renting versus leaving vacant - but if you do consider renting and are concerned about ensuring tenants are only staying for one year, consider posting at sabbaticalhomes.com. These are viewed by academics across the world who are only planning on staying a set period of time.

    In my experience, if you are very clear with prospective tenants that the house is available for rental for only one year, that the lease is not offered for renewal, and that the owner intends to reoccupy as their primary residence at the end of the lease term, your risk is very small.  I put this language in my lease, so that there is a written proof that both parties agreed to these terms.  It's never been challenged and I've never had a tenant abuse our agreement.  

    You could list on sabbatical homes and only take a visiting professor or better yet a person with an iron clad visa who will have to leave.  You can make it work. I think the risk would be greater to leave it empty. Various sovereign citizen factions have been known to squat in vacant houses and do all the paperwork to transfer property over to their corporate identity or a trust .  These folks are smart and do outrageous things-and get away with it.

    You might want to try a trade instead. 

    Yes, it can be a problem to get your home back. Is it a single-family home? Or is there a cottage in the backyard or other dwelling on the property? With a single-family, you do have more rights. 

    If they do decide to rent, make sure the move-out date is in the lease. And state that the owners will move back in and use it as their primary residence on the next day. If the tenants sign this, they know they have to leave. In addition, the Rent Board is more likely to recognize the agreement if it is clearly stated. Then do not extend the lease for any reason!!!! Both parties need to stick to the agreement.

    Make sure they have someone in town to manage the property. 

    Have you used the UC Berkeley Housing listerv?  There are many visiting professors on a clear 1-year sabbatical.  While some can be extended, there are definitely folks who have commitments to return to, who are definitely here for a single year.  There are also situations like a family who is renovating their own home who need a 6-8 mo lease.  You CAN be picky about who you rent to, and ensure it's a situation where they will vacate as expected.  This also ensures the home stays clean and functional (not-great things can happen when heat, water, etc. aren't regularly run) and you reduce risk of vandalism, theft, or vagrants.  A home left vacant for 6 mo in our neighborhood had squatters break in - and getting them out and fixing the damage was crazy-expensive.

    Why don’t you try to rent it to a professor on sabbatical?  You can get references verify their situation.  They will need to go back to wherever they usually live after the year is up.  Choose someone on leave from a permanent, ladder-rank job elsewhere, rather than a post-doc, say, who may not yet have plans for the following year. 

    Call Berkeley Property Owners Association, 2041 Bancroft Way, Berkeley - 510.525=3666.  

    https://www.bpoa.org

    We own a duplex in Berkeley and have attended their meetings to get info and also called the number to get some guidance.  

    Good luck

    We have had a negative experience ourselves that involved renting a room in a home shared with my then 75 year old mother, and yet I would probably still consider renting again. I would just take more precautions than I did the first time. We were completely naive, having faith in our own discernment about human character, and unfortunately in Berkeley, that's just not going to cut it. Despite this experience, I still believe that MOST renters are honest, want to take good care of the place in which they live, and all will benefit. 

    You probably already know what you need to do: run a thorough rental and financial background check; know your rights as a landlord and your tenant rights; even make a visit to the Rent Control Board and ask questions about what some warning signs might be. I'm not sure if you can still private message someone, but I can tell you in more detail what we learned--at some financial expense and mental anguish--from the experience and consulting with a local real estate attorney. Best, former landlord (just sold our house this week!) 

    I've heard horror stories too; the risks associated with renting one's house out for the year in Berkeley are indeed great. However, one of the ways you can mitigate the risks substantially is to rent the home to someone who is on sabbatical for the year - being careful to avoid a certain west coast man who is notorious for serially abusing this situation. You can look into what services UC Berkeley and LBNL offer to their visiting professors and scientists. There is also a sabbatical website where you can post or seek such tenants. Research the person/people carefully before signing anything. 

    Another thing that I know people have done is to let trusted friends stay there for the year.

    I left my home in Berkeley for 3-6 months/year for over 10 years and rented out my house using a short-term contract. My tenants lived in other states or countries and were here short-term. I had no problems.

    While a year is perhaps different, it may line up beautifully with a sabbatical family. 

    If you are clear about the dates, and have a contract, there should not be a problem. 

    Cal has a housing network for sabbatical professors coming to Berkeley for a year. 

    I used Craigslist exclusively but haven’t rented my house in over 10 years. 

    You could also hire a local property manager to help with emergencies, maintenance, etc. They take a cut of the rent.

    Good Luck!

    The simplest solution to knowing that you only want to rent for one year in any city, is to specify in the lease that you are doing a 1-year TERM LEASE, that does not revert to "MONTH-TO-MONTH" when the 1 year is up.  This is different than a 1 year lease, which does revert to a month-to-month if you do not supply a new lease after the first year.  You have to be very clear with the tenant that this is what you are doing.  That they are going to move out in one year.  This is a little-known "loophole."

    I understand the anxiety about a bad experience, but leaving a place vacant also carries risk and zero benefits to you or the wider community. We have a small in-law unit under our house and took our time to find an ideal tenant. 

    In Berkeley I think there are some great places to find temporary lodgers - I know that the family housing for students (located in Albany) has a lot of students transitioning from finishing degrees to finding jobs who might be interested in a one-year rental since they can't live there after they graduate, but many have kids enrolled in schools nearby and want to minimize their transitions. Our cat-sitter when we lived in Oakland was a student at the Pacific School of Religion and stayed in our house while we were away one summer - she was exactly the kind of person you'd leave to care for your space for 3 months, extremely trustworthy and thoughtful.

    Be clear with the time period the home is available for, advertise strategically to find people who would be a good fit, look for references or even look within your network - and give a good deal to anyone you think is truly the ideal renter, because it's worth it to make a little less than you could if you have peace of mind (we rent for about 2/3 market value to our current tenant). 

    This is an excellent question! I know people move away and rent out their house for a year or so and then move back in successfully, so there must be a way to do this. I would be very careful about whom you select to rent your house... perhaps a visiting professor on sabbatical or someone from outside the US who is moving here temporarily for a job. If you rent to a family with school age children, there could be problems evicting them during the school year. I also would consult with a very good real estate attorney, who can probably write a lease in such a way as to minimize any problems. AirBnB could also be a good option. Rent control laws have made it difficult for small time landlords to operate, and this is one of the reasons many owners are taking rental units off the market (which decreases the housing stock and drives up rents) and turning to short term rentals such as AirBnB. It's too risky and potentially expensive to have to pay tenants to leave. Good luck! I hope you find a way to make this work. 

    I encourage you to rent the home.  But... carefully.  Get a lawyer.  Get a Berkeley specific contract.  Vet your tenants, and make sure they are structurally unlikely to stay, but stick within the bounds of the non-discrimination laws (you are aware the City is working on a plan to prohibit owners from making background checks on tenants, right?  This seems to be an initiative of the Mayor and Councilmember Davila primarily).  Be careful, as you can be sued for discrimination, and there are sting operations where workers poised as tenants will approach you based on postings. Keep in mind that tenants over age 65 have even greater protections, should you try to enforce a lease term.

    I know many others choose not to get into the danger game and leave property empty.  But there are downsides there too for the health of the house, the neighborhood, and the housing market.  Consider that by offering housing, you're helping to lower the housing pressure, and thus to lower costs for new entrants to the market.  Remember that existing tenants are not affected: in Berkeley rent increases are caped at 65% of the cost of living increase.

    -----------

    My family was heavily impacted by an overstaying tenant.  What was supposed to be 3 months has turned into 23 years and counting.  My parents were unable to move into the accessible part of their own home, when that time came.  And now the tenant is a year and half behind on rent payments, and there's no end in sight.  Remember that tenants get a free legal team, paid for by housing providers, but as a housing provider you get to pay all your own costs, and can't even recover costs if you win.

    If you develop a new Accessory Dwelling Unit you have some legal protection from Measure Q -- but watch out.  You'll need to ensure as you get older that whoever is caring for the estate evicts the tenants before you yourself need to move to assisted living.  If you die, or move for any reason, the rent board swoops in and controls the unit, and you won't be able to get the tenant out for love or money.  Be sure to start the eviction procedure well in advance of your death or move to assisted living, as it takes a while.  Allow 3-6 months, and budget $15-25,000.  That's less than a year's rent for most whole houses, so you should be fine.

    Of course that's a fixed fee, in the case of my parents the tenant was paying $450/month at the time.  Just make sure your rent is high enough to pay for the potential legal costs.  Be extra wary of renting lower cost units, as the dangers are higher, but the rewards are much lower.  Except the social rewards: just chalk it up to good will, and provide housing for those who can't otherwise afford it.  If you can afford alternative housing, then why not contribute to society, by offering a place to a tenant who may have nowhere else to go?

    Thank you so much for the responses.  I did not consider the risks of leaving the property vacant so really appreciate the posters who raised it as an issue.  We decided to not rent it out but let family members (and other few the owners trust completely) to use it as weekend/temporary place to have access to the bay area when needed for free in exchange for them watching out for the place, dealing with mail and any issues, etc. as it seemed like the best and safest solution.   

  • Renting out our house vs. Airbnb rental

    – Aug 11, 2019
    (6 replies)

    My wife and I own a two bedroom house in the Temescal area of Oakland which we have rented to others for several years. The current tenants have purchased a house and will be leaving in about two months. It has occurred to us that we might make some small repairs and upgrades, furnish it then rent it out by listing the house on the Airbnb website. Before we do, however, we would very much like to have the advice of those in the community who have taken the same or similar path and would be willing to share the benefits as well the the shortcomings of such an endeavor. Our main concerns are that we would not be able to average the same level of income from periodic rentals with Airbnb as it would probably be rented only part of each month, we would have to spend a considerable amount of money to furnish it and would have to deal with reservations, multiple visitors and perhaps calls while people are there to deal with small issues which might come up even thought the house in in very good shape. These type of calls do come up from renters but are very infrequent  We would be very grateful for any thoughts, both positive and negative. Many thanks.

    Aug 11, 2019

    You and your neighborhood will be better served if you were to rent to a local family.  There is not rent control for single family homes so I don't know what you have to lose. It does not sound like you would be a good candidate for an airbnb host given all of your concerns. You are better off vetting a good tenant to take care of your property and pay you consistent rent.

    The average occupancy rate is about 60%-70%.  It also takes a lot of effort for cleaning.  Each visit may cost at least $60.  The people may also abuse the place.  If you do decide to rent it on Airbnb, be more selective about the tenants if you are worried about abuse, such as only agree to the people that verified their IDs, and who had positive reviews from the past. You do need to run it like a business, and it takes time and effort.  Check out the listings around your area, see how much they are asking for, and look at their calendar to understand how booked they are.  From there, you can estimate the income to see if it makes sense for you.     

    We have an apartment which we tried Airbnbing 3 times.  First time our long term tenant was moving to Europe and left us with a fully furnished apartment.  We cleaned and listed on Airbnb.  For the first month we hit what appears to the average a guest 20 nights per month.   Some guests were there 2, 3 nights so it becomes a hassle.  Up side we have on guest which stayed for 3 months and we received $1200 over monthly rental.  But then there are dry spells with no gests for weeks.  We've talked to other Airbnb hosts and the 1, 2, 3 night stays are just killer in terms of checkout, cleaning. fixing, making everything nice for the new guest and meeting the new guest.   It becomes a full time job or you pay someone to do it and then they are the ones making the money.  And remember you need to get a business license, $$$, might need different insurance $$$$ and the city might have a short stay/Airbnb tax. $$$$ (Not sure about Oakland, Berkeley does and Airbnb takes the money from your account.

    Then  you have the hassle of Airbnb web site making pricing mistakes.  We Airbnb for $80 to $130 per night.  Airbnb's web site was messed up and a guest was able to book and pay for 5 months at $35 per night.  It took over a weeks working with Airbnb to get this figured out and then the guest was furious with me for Airbnbs mistake.

    Most Airbnb hosts are doing 7 or 14 day minimum. 

    Then you have the horror stories.  We had a guest who was from out of town for a medical procedure.  (Not a problem.)  Guest checked out at 11 and we had a new guest coming at 2.  We went to clean only to find the pillow covers, sheets and pillow all had blood and had to be replaced.

    We threw in the towel about 5 months ago after the third attempt.  Yes we were making $800 to $1,500 extra per month which sounds Uber nice.  But then when we looked at the amount of time we were spending I don't think we were making minimum wage.  My advice....  don't do it.  Oh, and there one more thing you have to fight.  Airbnbs ratings.  We had one guest complain about something stupid like water in the sink came out too slow.  (Yes, because it's a water saving faucet required by law.)  I think we were given 3 stars which placed us low on the preferred list.  (Don't expect Airbnb to have any sympathy.)  Took I think about 9 months of renting 5 star reviews for us to appear on the search list. (ther hosts scam the system to get higher ranking.)

    Bottom line, we have no plans to Airbnb every again now that we are super-hosts.  If you decide to do it, forget Airbnb and go with VRBO.  (Which I have been told is really Prceline or one of the Priceline like web site companies. 

    Hope this helps

    I'll be interested to see what others say. We considered this, but the cost of cleaning/restocking with each new visitor and the amount of time it felt like it would take to maintain, plus the local ordinances (make sure this is ok for your area) and taxes, etc, it just seemed like way too much of a hassle. There are also so many horror stories about people trashing houses, annoying neighbors, etc. Yes, tenants have issues, but imagine new tenants multiple times per month....guess it depends upon how much time you're willing to give it - you could always try it for a bit and if it doesn't work then re-rent or sell. Good luck!

    I would beg you not to use it as an AirBnB. So many people in this area are desperate to find apartments, and there just aren't enough to go around. 

    I know I'm late to this conversation, but you should check the City of Oakland's regulations on Short Term Residential Rentals:  http://www2.oaklandnet.com/government/o/PBN/OurOrganization/PlanningZoning/short-term-residential-rental-regulations/index.htm

    You can only rent for one week or longer, and you are required to have a business license, pay business taxes, occupancy taxes, and you may need a permit.  Yes, lots of people are doing it illegally, but they could very easily be shut down if neighbors turned them in.

  • Short term, Airbnb type rentals in Oakland

    – Jan 22, 2019
    (1 reply)

    Hi all - I am confused and wondering if anyone here can help out - really hoping for someone with actual knowledge and expertise vs just an opinion or a desire to interpret what's posted, please.  We used to rent our house when we'd travel, and we'd love to do that again this summer. We had the city license required to rent our home and paid taxes to the Fed, State and City. Our rental timeframe was usually 6 days to about 3 weeks, with most renters coming for 1-2 weeks. However, I heard that Oakland's Short Term Residential Rental Regulations have changed, so I read them, and just don't get it. One section states that rentals must be 7 days or longer ... another says no rentals for less than 30 days unless in hotel zone ... and then it gets more vague. I looked at all the sites that typically have house rentals - VRBO, Airbnb, HomeAway and so on - and there are tons of house rentals in Oakland, available for almost any amount of nights including just 1-2. I'm sure most of those folks are homeowners just trying to pay the bills and not wanting to be doing anything illegal. Many of the travel sites collect and remit taxes direct to the city, which the city accepts ... so what is really legal nowadays?   Thanks in advance ... 

    Jan 22, 2019

    The East Bay Rental Housing Association may be able to help. 

    https://www.ebrha.com/

  • Advice on Renting out Our House Furnished (Sabbatical?)

    – Sep 28, 2018
    (7 replies)

    My family has the opportunity to move to Copenhagen for a year, and we will need to rent out our home, which is in a desirable section of North Berkeley. We are hoping to rent it out furnished, ideally to a family, and thinking a sabbatical situation would be the best way to go. I would love to hear from others who have done this! Do you include all the utilities (water, garbage, Internet, etc.) in the rental price? Do you get a special lease drawn up (and who do you consult for this)? What kind of yard maintenance can be expected from renters (mowing, etc.)? Do you package up ALL personals, or can you leave books on shelves, toys for kids, etc.? What else should I be considering that I might not be thinking of? I'd love to hear about positive and negative experiences others have had... Thanks in advance! (And I'd also love any advice on Copenhagen neighborhoods, schools, etc. if anyone has it! :) 

    Sep 28, 2018

    Hi there, one word of advice, having learned the very very hard way -- please be sure you include a clause in your lease that the place was previously owner occupied. We had asked our property manager if we should inform our tenants that we might return to our house, when we moved cross country for an indefinite length of time, and she advised against it. Please include the appropriate language (I don't know exactly what it should be since we did not do it and were then exposed to a potential eviction lawsuit...). 

    Copenhagen is amazing. Have not lived there, but our friends moved there from CA to Nørrebro and we've loved it when we've visited. Renting in CPH can be challenging. I can put you in touch with our friends if you're interested in expats' experiences.

    In the international school world, Copenhagen International School and Rygaards are pretty well known.  I don’t personally know much about them except that it International school teachers are usually pretty happy to land at either of the schools. 

    Sounds like fun!  The only thing I’d say at this point is that should Prop 10 pass, your single family home falls under rent control in Berkeley again, as far as we can tell. (One reason to consider voting no on 10...)

    We did this in 2004 and it worked out well. It was stressful during the "looking for tenants" stage cause at first we were not getting any interest, but then suddenly we got a lot at the end. So don't panic if it takes a while.

    Tenants paid the utilities directly. We did set the rental price including monthly housecleaning and gardening, which is what we had. We wanted those folks to have their income while we were gone and we wanted to be sure the house and garden were well taken care of!

    We packed up all our clothes, jewelry, special toys but left out books and some toys (age-wise it worked out, but if you have a teenager coming to stay in a 5 year old's room, they probably want you to pack up everything!). We stored all that stuff in the garage (which we told them in advance was not available for them to use). It was a lot of work but good motivation to get rid of lots of stuff!

    We asked a local friend to be the "property manager" -- to be their main contact while we were gone. There wasn't much for them to do.

    I don't remember how we did the lease.

    Renting out your home while on sabbatical - be sure to read this: https://www.motherjones.com/politics/2016/12/berkeley-sarah-lawrence-pro... 

    Make sure that your lease states when you will be returning and reoccupying the house. 

    You should review any rental laws that may affect your city/county. There have been issues with not being able to get back into your own home without paying the renter to move out (costs in the 100 of thousands of dollars). Also Prop. 10 if it passes will also affect rental of homes. 

  • Property manager for my home while I'm overseas

    – May 8, 2018
    (2 replies)

    I'm looking to rent my 3 bd / 1 ba 2 story home in North Berkeley Hills for a minimum of 1 year. This has been my private home for over 20 years and I will be away overseas. In search of your *BEST* recommendations for Property Managers able to handle everything from start to finish: 

    Advice on how to prepare home.

    Place property on market/place qualified tenants.

    Handle contract, ongoing maintenance, and financial transactions promptly and with integrity.

    Excellent communication.

    Able to deliver property in condition it was rented upon my return. 

    Anything else? 

    Please no direct commercial responses. First hand personal recommendations only. 

    May 8, 2018

    Before you rent out your home, you should really do your research. Depending on the laws in Berkeley, you may have to pay your renters relocation fee to reclaim your home. In Richmond and San Francisco, these can be into the 5 digits and it may take many months or even a full year to do an "owner move-in eviction"  It is much more difficult to relocate someone who is elderly or disabled - more time and more money. Right now, Berkeley is rent controlled. While rent control itself, does not apply to single family homes, eviction laws do.  It is not enough to have a lease and then simply not renew it. Find out exactly how and under what circumstances you will be able to legally ask your renters to leave.

    Also the state law that exempts single family homes from rent control will likely be challenged in the fall election in a measure being touted as "state wide rent control" - totally inaccurate BTW.  However, exemptions (like single family homes) in rent controlled areas (like Berkeley) are definitely at risk of coming under these incredibly punitive laws.

    Additionally, since rent control involves an expensive bureaucracy, the Berkeley Rent Program will charge you for renting. I don't know how they do it in Berkeley but in Richmond we pay an inspection fee, a rent program fee, a business license fee all are annual. The Berkeley Rent program is one place for answers, Berkeley Property Owners Association is another. 

    Good luck

    A suggestion from a renter, not a homeowner, for what it’s worth: We rent a house in North Berkeley managed by Bay Cities Property Management, and from the renter’s side of things, they’ve been very reliable, responsible, and professional. We pay rent each month automatically through on online portal, which works well for both us and, I imagine, the house owners.

  • Hire property management for Berkeley home while we're overseas?

    – Apr 10, 2017
    (4 replies)

    We are moving our family overseas for a year, possibly longer. We want to rent our Berkeley home and are debating whether it's worth it to hire property management. We would prefer not to deal with the legal hassles and background checks etc..., and are also just loathe to become landlords at all. Does anyone have any insight or experience with this, or do you have particular property managers to recommend? 

    Apr 10, 2017

    Hello,

    Though I don't have an answer for you about property managers in Berkeley, I will say that I'm interested in possibly renting your place. My spouse will be on sabbatical and we're looking to relocate to Berkeley. Thanks for being in touch.

    We moved away and kept our house, uncertain if we were going to return or not to the Bay Area. We initially tried to rent the house without a property manager, and we even found tenants on our own. At the last minute they decided it wasn't right for them. Luckily it was still a couple of months out from the time we were moving. We hired a property manager, and she rented the place out within the weekend.

    We've now been away for a year, and we are planning to return. There were a number of surprises with this property manager. Most recently we discovered that there are now 4 tenants, not just 3, living in our house. When we asked why we didn't know this, the property manager informed us it wasn't necessary to inform the landlords that there was a 4th person and it didn't affect the lease. Though we would have likely not objected, it made me very uncomfortable that she had unilaterally decided not to let us know how many people are living in our house. 

    The upshot (I'm not doing the best job at detailing the back and forth and various frustrations of using the property manager) is that though she's been frustrating at times, I am still glad we had someone managing the house, as we were multiple time zones away, and it really would have been an immense stress to manage remotely. I've tried to be an absentee landlord while I was in graduate school, and at the time I couldn't fathom affording a property manager. It was really stressful to deal with tenants' sometimes unreasonable (like needing a lightbulb unscrewed, or a "beeping" that was the fire alarm that needed a new battery) panics, and although I think I'd be wiser about choosing my tenants now, I think being a landlord is generally a stressful undertaking. Better to outsource if you can. Also, do lots of research about managers' rates -- we found them highly variable. We are paying 5% but found managers with rates as high as 9%!

    Yes, absolutely get a property manager. I rented out my home when I was overseas, and when the furnace broke I was sooooo glad I had a property manager. I think I paid about 7% of the rental amount. The tenant they found was so great that I ended up selling the place to her directly rather than putting it on the market.

    Don't feel bad about being a landlord unless your goal is to be a slumlord. Think of being a property owner who is providing a service to someone who needs a place to live.

    As I renter I have rented from http://www.kands.com/. The original owners retired, but I think I would still recommend their services. They run a tight ship and have a great network of repair people.

    I am not a landlord but met Duwandlyn as renter looking to rent a house. She was just fantastic. Very trustworthy, thorough in her vetting , responsive with several handymen at the ready and honest and if I were in your position I would consider working with her. It will be difficult to manage all the little things that come up with renters if you are overseas.  http://www.realestateagentvallejo.com/

Archived Q&A and Reviews

Questions

Renting out our furnished home for a year

Nov 2014

We are planning on taking a year long trip in a few years (summer 2018-summer 2019) and would like to rent our home - furnished - for the year that we are gone. Has anyone here had experience with this before and found a great way to do it or is it just Craigslist? I feel like we have a great home for a visiting professor with a family (Alameda, four bedrooms, two baths, good public schools etc.)...is there a good place to list our home for this purpose? thanks! CHS

We had good luck listing our furnished home for a year (while we were on sabbatical) with sabbaticalhomes.com. There is a small charge to advertise, but we found the site easy to use. We got a good number of serious replies, and ended up renting to a visiting academic and family for the year. RK

Renting our house for a short term

May 2013

We are contemplating renting our house while we are away for my husband's work this summer and fall. If we decide to rent it, we are considering two options: renting the house on airbnb (and pay a friend to check in/out the guests, check for damage, schedule the cleaner, etc) or rent to one family for the entire time.

I would love advice from people with experience owning rentals (where to get rental agreements, how much deposit to require, special clauses for a short term lease), from anyone who has experience renting on airbnb, vbro, etc. and from anyone who has rented out their entire home for a few months (if we rent to one family for the entire time, do we pack up our dishes and pots and pans, etc.?)

Our plan is to remove valuables from the house to a safety deposit box and store clothes and personal items in one of the bedrooms. Thank you!

We rented out our house for 7 months and had a positive experience. We rented it furnished but removed our most special/breakable things. The thing that made it most do-able was finding a family that needed it for the right length of time that were home-owners and who knew someone we knew..so there was some personal reference ( through my husband's work). Both of us had young children so they LIKED all the toys and kid gear, so that was also great.Because it was clear to us that we wouldn't worry about them as renters, we dropped the price by, maybe, $200 a month. We also paid for our maid and gardener to keep coming 2 times a month..and they kept us informed of how the house was doing. This was a winning experience. We got the rental agreement at a business store. Oh, and they didn't smoke. They were moving from the East Coast so they/we knew their dates. By contrast the( local) prospective renters who were looking for a short term rental because of a big remodel were harder to work with because they kept trying to change the dates and kept trying to make their dates provisionally based on where the contractor was..which didn't work with our firm dates for being away. Good luck. J

Airbnb or vbro rentals are a lot of work! People usually use those for terms of a week or less. That is too much work for a friend! If you are going to be gone six months, then I would suggest you do a sublet through craigslist. Sublets are generally fully furnished, including sheets, towels, dishes, etc. You may want to check with Berkeley Property Owners Association for information about leases. Make sure your ad has all the details and good pictures. Anon

It is a LOT less work, not to mention wear and tear on your house, to have one tenant or family, rather than a hotel type situation. Be sure to go through all the formalities, such as complete application, credit check or credit report, and check references before the tenants move in. Be sure to have a lease. See the Nolo Book on Landlord Law, (it is at the Library). It has a CD with forms. You will still want your friend on standby to handle tenant issues and answer questions, since you will be far away. Lynn

Renting out our home while on sabbatical

May 2013

We have a lovely 3-bedroom home in Berkeley and might be taking a sabbatical for a year or possibly, even 2. Rather than moving our furniture & things, we are thinking of renting out our place furnished. Does this lower the possible rent that we could get? What kinds of things should we consider while we rent out our place furnished? Also, I've heard that tenants rights are very strong in Berkeley -- when we want our home back in a year (or two) is it possible for the tenant to refuse to move? Wondering what the best thing to do is... anon

My husband and I rent properties, some in Berkeley. Financially you can do very well with it if you understand the work involved. The nice thing about a single family home is that Berkeley does treat that differently than a larger complex in terms of rent issues. That said, I would still try to rent to someone who you are very clear with that you will be moving back at a set time. I would put that in the lease. Start by getting the NOLO press landlord/tennant book. Also - you have to be prepared for if they move out early, or don't pay rent, or have a problem with the house and you aren't in the area. You will need a relative or friend, or a property manager to deal with anything that happens while you are gone. Often something that does not act up when you are in the house (like your plumbing) all the sudden starts to clog when renters are there. You need to be OK with real wear and tear. The first time we rented our Berkeley home and had just redone the floors, I almost cried when I saw how scratched they were after a year and a half. It would have been different if we ourselves had slowly caused the scratches, you know? If you leave it furnished, you would need to be prepared for that with your furniture as well as the home. I haven't seen much difference in price for furnished or not, but it will affect who applies to be your tenant - maybe in a good way, maybe in a bad way. So I would think about that more then the impact on the rent. Because who is in your home is the most important thing. Enjoy your sabbatical!

Check with the faculty housing office. Another family on sabbatical would be ideal for your home. If you make the lease term less than 12 months, most tenant protections will not go into effect. If you work with the university, the family that takes your home will be better vetted than if you random-access through Craigslist. Amelia the Realtor

Yes, tenants are well-protected in Berkeley, as landlords must have ''good cause'' to evict. But if you are leaving your home temporarily and it is understood you will return, you have good cause to evict your tenants if they do not leave as agreed. From the Berkeley Rent Board website, here is the provision (one of the good causes in Berk. Municipal Code sec. 13.76.130 A.):

''10. A landlord or lessor seeks in good faith to recover possession of the rental unit for his/her occupancy as a principal residence, where the landlord or lessor has previously occupied the rental unit as his/her principal residence and has the right to recover possession of the unit for his/her occupancy as a principal residence under an existing rental agreement with the current tenants.'' anon

Look at sabbaticalhomes.com. It costs a small amount to advertise, but potential renters can view for free (the opposite of the Ca housing office, which reduces the number of potential tenants who will see your ad!).

It's intended primarily for those associated in some way with academic institutions, so tends to be people on sabbatical, most of them looking for furnished places to spend the year. You can also look for a home exchange there, which might also suit your needs. R.K.

Thinking about renting out our home while we're away

Feb. 2004

We're considering moving to China with our 9-month-old daughter for at least a year but don't want to give up our Bay Area home. What are the pros & cons of renting our home in this market? Some say we should sell and invest the money rather than put up with the landlord headaches from thousands of miles away. We do have some relatives here, but we can't expect them to keep a constant eye on things. How much work would an agent do on our behalf? Thanks! Sean

I strongly urge you to get someone to manage your rental. A property manager will advertise the house, screen potential tenants and run credit checks, select a tenant, collect the rent, handle any problems with either rent collection or household maintenance and, if necessary, evict the tenant. You will get a monthly check minus a certain percentage and beautiful records at the end of the year for your taxes. If your house is in Berkeley a good property manager will know to pay interest on your deposit each December to your tenants, among other things. If your house isn't in Berkeley, it is still good to have someone who is knowledgeable about state laws, because laws are changing all the time.

Plus, should your tenant leave while you are still out of the country, there is now a law that they are entitled to a walk-though prior to vacating in order to give them a chance to mitigate any deductions from their deposit. It therefore is a great idea to have a specialist who can handle doing this so you don't have to come back to do it.

Also, you should be aware that you will pay a significant tax to the State of California should you decide not to return and you sell your rental house. Talk with a tax specialist about this. Been there, done that

1. You can register with eHousing.com, Metrorent and Homefinders. They all allow property owners to list properties for free. The Montclarion and East Bay Express also work. Try the UC Berkeley housing office. They have listings that are viewable only to faculty (e.g. professors teaching at Berkeley for just a year).

2. The two most important things to check with renters are their credit rating and their references (i.e. current landlord). If their application is incomplete or information is inconsistant, that is a bad sign.

3. The NOLO books are pretty good. Also consider joining the Rental Housing Association of Northern Alameda County. Then you have access to lease forms, information and advice from the California Apartment Association, and credit reports.