How to Use Foreclosed Homes as Executive Temporary Housing
Starting a temporary executive rental business can be a way to generate a large amount of rental income without having to set up long-term leases and tenants. One way to maximize your profit in this business is to pay less for the properties that you buy. In some cases, buying foreclosures and using them as temporary executive housing can decrease expenses and increase your profits overall. When getting into this business, it is important to consider the risks involved as well as the potential returns.
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Instructions
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Locate foreclosure properties that you would consider buying. You could work with a real estate agent or watch out for foreclosure auction advertisements in the newspaper. You may also contact lenders in your area to find out what properties they have for sale.
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Purchase foreclosures in your area. You can do this through a property auction held by the mortgage lender. With this process, you will need to have cash on hand so that you can bid on properties. You could also buy property that did not sell at auction directly from a bank.
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Conduct any necessary repairs and upgrades to the properties that you buy. If you plan on making an executive rental, you will need to make sure that the property is in premium condition and has high-end features. For example, you may want to spend money updating the kitchen and the bathroom to make sure that they look good. Provide furniture and other common items, such as linens and kitchen supplies, in the units for future tenants.
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Advertise your available executive rentals. You may want to post ads in the newspaper and put signs in front of the property. You may also want to work with a real estate agent to find potential renters for your property. If you have some large companies in your area, talk to them about working out deals for temporary executive housing for employees.
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Enter into short-term lease contracts with your tenants. Most executive temporary housing agreements charge higher-than-average market rent in exchange for flexibility and convenience. Most leases can also be renewed on a monthly basis instead of a more long-term requirement.
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Tips & Warnings
Require a deposit from tenants so that you can repair any damage to the property after they move out.
