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Kerick

Starting a subletting /Rental homes business

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Hello all I am new to the land business and had the idea of renting land out from a major realtors.  The idea is I rent out land then places houses on them, 1024 sq to start was thinking of homes that are no larger then 35X35 and around 230 prims to 300 and rent them out for 550 to 600 .  I have done this before and lost a lot of L$ because I did not do the research. This time is different I have looked into many property  and what others are charging for prims and size of lots. My concern is how to get people into my homes once I set up shop and what I need to be area of as far as responsibility's  as a land renter. I can not afford to buy large lots at this time, I am hoping to start small then expand it out. I am just looking for support or advice from you folks that know more. What to do and not to do, whats a fair price , what to look out for and not get riped off and so on.

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Not to discourage you but if you are doing this to make money then try something else. The truth of the matter is that you will only make a profit if you have no vacancy at all times. Realistically this will never happen, you will always have some percentage of your land unrented. Also, keep in mind that most people do not want to rent land from a third party when they can go and rent directly like yourself and be able to own the land, rez their own houses (not what you choose) set up their own radio streams (not yours) and have their own privacy and rules in their own land.

However if you still want to rent homes, rather than land, then try starting some sort of an RP community.

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No no by all means please let me know this stuff, so is there a way to make it where they can have their own radio streams and so on. I am welling to bend  with some things . As far as houses go I am not trying to garner the demographic that owns their own homes. Those folks are always going to want land not rent a home . Here is my issue , I see plenty of appment buildings that rent out and it seems they make some sort of profit . And again I am talking about starting small maybe anywhere from 2 to 4  plots of 1024 . I have a wide range of houses . I guess my question is I know thier is a nich for rent out homes but how to make it work is the question... how to be fair to my tenits , land lord and myself. as far as setting up a RP community that is something that is out of reach for now.. I just don't have the funds for getting into a sim. then again I may not know how much one cost. I would be welling to buy a 1/4  sim or even an abondon property, but again small steps .

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IF you found land cheap enough and that you were allowed to subdivide, you could divide it into several lots and make them all owned by the same group.  Then have your tenants join a group where you give them the right to set media, manage access, or what ever other benefits you want to bestow.

You real problem is that you will have to charge enough to cover your tier, account for the inevitable vacancies and earn you a small profit.  That is going to be very difficult, especially with only a four or so lots.  I think your rent is going to have to be higher than you think compared to other properties.. 

For example, if you rent a 4096 at 25US a month and figure half will be vacant (a reasonable assumption in today's rental market), than you'd need to charge 6.25 US a month per lot to just break even each month.  So assuming an exchange rate of 247L/1US, you would need to charge at least 386L a week for each lot for 234 primps (which must include the house). That is 1.65L a week per prim.  It is pretty easy to find rentals for less.  So your competition would be stiff and your rentals would not be competitive. For comparison, I rent land for a weekend home right on the shore of the Blake Sea, a very popular sailing area, for 1.20/prim per week, and that area is in very high demand with few vacancies. I have all the rights a land owner has, except selling, including being able to use my own house.

Today's rental market is very competitive and there is a lot of homes for rent that are vacant because there are many times more homes available to rent than there are renters looking for one.  Your market is going to be pretty limited too for a rental house on a 1024.

 

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Darren Scorpio wrote:

Not to discourage you but if you are doing this to make money then try something else. The truth of the matter is that you will only make a profit if you have no vacancy at all times. Realistically this will never happen, you will always have some percentage of your land unrented. Also, keep in mind that most people do not want to rent land from a third party when they can go and rent directly like yourself and be able to own the land, rez their own houses (not what you choose) set up their own radio streams (not yours) and have their own privacy and rules in their own land.

However if you still want to rent homes, rather than land, then try starting some sort of an RP community.

Would like to know how you've arrived at your conclusions about what people want.

as a landlord of five years I can assure you there are many people who do prefer to rent land from a third paty, for various reasons. some also like the fact of having a home, furniture etc provided for them, especially with the flexibility to change or remove it during their tenancy.

not everyone wants the bother and effort involved with finding , setting up and owning a parcel when they can have it all set up  for them. Especially with onsite help and assistance rather than filing tickets to linden lab, then being referred to a wiki to find answers.

 

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I arrive at my conclusion based on my own preference and that of 90% of my friends, certainly there are a few who prefer otherwise and that is why I said most, not all.

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Darren Scorpio wrote:

I arrive at my conclusion based on my own preference and that of 90% of my friends, certainly there are a few who prefer otherwise and that is why I said most, not all.

Then I might suggest that *you & your friends* dont make up a vast majority of the Second Life user base?

Based upon the figures that come through my business each year, and having had the opportunity to talk with and rent homes & land too, quite a broad selection of people in Second Life throughout the years...there is actually a large amount of people who actually DO seek a furnished home, thats managed and set up for them.

New residents often dont want the hassle factor of buying furniture, buying a home initially...they want to enjoy their time. This may changes later, when they have "found their way around"...We also have quite a large section of people renting from us that are not new...they appreciate a home thats ready to go...not everyone wishes to play housey housey, they are here for other things....

 

The reason I keep the larger section of my rental homes pre-furnished, is because the demand is there. Day in, Day out.

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To all who replied thanks so much it helps me know that while this is passable and there is a demand for it, it will be very very hard to make it work.  Again what I need now are tips from you folks if passable to help me launch this business to get it up and going . What do I need to offer the tenant that will appeal to them to get them into my homes . Also what should I expect from the land owner and next question is what about my rent boxes vs the land owners. I will have no issue paying my land rent, just want to make sure that my tenets will use the right box for rent.  Which brings up another question should I use my own rent boxes or something like hippa to do it for me?  Any info you can give me will be greatly appreciated.

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Overall to attract and keep tenants you need to offer as nice a place as possible for the money,    Tenants are fickle and constantly look for a better deal and are gone if they find it.  Check other rentals of this size and see what they offer in amenities, prims and price.  Offer more or at least be competitive with what they are offering. Give great customer service.  Many people that rent this size place are new to SL and need a lot of help. 

Spend some time on a marketing plan so potential tenants can find your rentals.  Possibilities include putting an ad in classifieds under property rentals, posting here on the land forum. putting a listing in MP, putting the land in search,renting an ad board in a newb friendly area or high traffic clubs, and putting it in your profile picks and asking friends to do the same.    Be sure to include keywords that potential tenants may be using to search for property, but don't use words that are not related to the rental.

Write up a lease so tenants understand what they are getting and what is expected.  Clearly state any rules , including any rules in the covenant that may apply to them. Give your refund policy and the length of the grace period if you have one, how many people can live in each house, the who what when and how of contacting  you etc.

For that size home you will probably want to furnish it as your market probably won't have much furniture or want to buy it.  You can always remove it if your tenant has furniture.  Use furniture that is low prim as possible but still nice looking to leave as many prims for the tenant to use as possible.  There is someone on MP that sells entire rooms that are just one prim and they are even texture changeable.

As far as the landowner, as I said earlier, make sure the covenant allows subdividing the land and subletting and if doesn't say, ask to be safe.  Be aware that in a situation like this, the landowner will hold you personally responsible for making sure your tenants follow the rules and for any misbehaver of the tenants. They probably will not respond to your tenants requests but refer them to you to handle. They will also not care if you are collecting your rent or not,  They will expect you to pay your tier on time every time.

For rent boxes, make sure you put them inside the home or by the front door so there is no question which box to pay.  Ask your landowner to relocate your box to an out of the way area, maybe underwater even.  You may want to invest in a networked web based rental box system if you will be expanding in the future. You can manage your boxes without being in SL as long as you have web access.  They also have features the cheaper boxes don't and are a lot easier to use and will keep good records for you concerning who paid what when.

 

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Amethyst has some very good advice. I always have to chuckle at the people that claim nobody rents or nobody wants furnished or nobody will rent with a restricted prim allowance. The market is there but...it takes a ton of work to hit that market. If anyone thinks they can just throw homes out and they will rent...well lets just say they need to pass around whatever they are smoking ;) there is a huge interment in time alone and a lot of money investment to go into this. I don't want to even think what I've spent to come within sight of breaking even and I've been doing this awhile now.

 

I learned some hard, expensive lessons along the way. o.O

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See this is what I was wanting to hear, I know its going to be very very hard to break into this market, I figured if I don't rent something at 6 to 8 months I am doing something wrong and I should just get out or change up my marketing strategy.

To all invovled this is exactly the kind of feed back I have been looking for and the advice is invaulable. So thank you to all of you means a lot that you set me on the right path and showed me where not to step.

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Ditto, I am looking for the best resources for landlords / landowners. Found an LSL script on the wiki to make my own rent box, just wondering who else has good advice and things that worked vs. didn't work?

I am trying to start a studio where different machinima creators can come in and run their own shows in front of a live audience.  It would be more of a TV show type of setup with a fixed seating arrangement, cameras etc.  I am moving into the scripting phase but have a nice design for the studio itself.  I'll be using the space for my own show when not in use by renters, but I was thinking of charging a reasonable daily rate just to offset the cost of my tier.  

Only thing is I wouldn't want too many people moving things around. Definitely like the idea of using a group for management of tenants, this way I can "share" some things but not others. As a graphic designer IRL I'd be happy to help people setup the signage with their own logo or text, etc. if they are renting for a week or more.

Thoughts?

Alotta_005.png

 

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