We are just getting into offering furnished suites and have a question. Do others in the business treat clients as “tenants” and sign a lease or as “guests” like a hotel. It makes a big difference in terms of the relationship.
I found the posts by furnishedowner very helpful as we considered entering the business.
firstclasssuites,
I like your handle!
I would categorize a short term-- less than 30 days-- renter as a “guest”.
A 30 days or longer renter is a “tenant”. But we treat them like guests.
All of our tenants sign a regular rental agreement, like you use in an unfurnished rental situation. In this state 30 days or more qualifies you as regular rental housing. Then you are not subject to paying gross receipts and lodging taxes.
Your darn right it makes a big difference! For now we are sticking to the 30-day or more policy. I would be very interested to hear about your first class suites. Where you are, and what is the market?
Furnishedowner
We are just launching our first 3 furnished units in the Fraser Valley of British Columbia. The region is adjacent to the Greater Vancouver area and includes a number of distinct cities. Our market area covers about 700,000 people.
There are a few “one off” furnished suites around but no one else is going at it as a full time business outside Vancouver and its closest suburbs. Our research shows there is an unmet need, so here we go!
We are planning on doing 30+ day rentals, which similarly seems to be the line for residential rentals. You might even be able to call a less then 30 day rental a “residential rental” in certain circumstances.
My handle is also my business name. Add .ca as we are in Canada.
firstclasssuites,
What does “one off” mean? Must be a Canadian term?
Good luck on your furnished suites. You can send me a PM (personal email message) for any questions you might have.
Check out a site called VRBO–“Vacation Rental By Owner”. It was recommended by some of our snowbird travelers. We just put our first unit on there and it is generating some interest. It cost around $250 for 1 year. But you might want to try your free local sources of tenants first.
Furnishedowner
By “one off” I am talking about landlords with just one furnished suite. It is a sideline, not full time business.