# Renting a larger house (>3000 sq.ft). Tips on finding tenants



## speedboxx (Dec 31, 2013)

Hello,

I have a property with 3500 sq.ft of living space (includes a fully developed basement) and have put it on the market asking $3000/month. I am also willing to offer basic furnishings with it. It is not in a prime location, but is a decent-ish neighborhood. From looking at similar ads, I believe my pricing is pretty competitive for what you get. However, my concern is that people willing to pay $3k+ in rent typically want nice neighborhoods or can afford their own place.

Although the basement is fully developed, there is no gas or 240V for a separate kitchen so that makes it difficult to turn into a dual unit. The basement does have a walkout, however. I am targeting larger families (or multi), but not sure how many of those are currently in the market.

I am just wondering what everyone's experiences are with higher priced rentals and finding tenants. Currently in Calgary, my experience is that there is a high rental demand and the sweet spot is probably $1500/month rentals. I have a $1900/month rental last year in which I had offers within the first week of listing. Would a property management company actually be useful for higher priced rentals (larger homes)?

Any other thoughts/tips would be great. Thanks!


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## OhGreatGuru (May 24, 2009)

That's more house than most renters want/need or can afford. If you have a walk-out basement, seems to me you should explore cost and legality of making 2 units out of it. Otherwise your idea of professional help (either a management company or realtor) to find the right clientele makes sense.


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## financialuproar (Jan 26, 2010)

I think it depends on what your plans are for the property long term. If you're looking to hold it and rent it for the next 20 years, converting the basement into a suite could make sense. It makes no sense if you're going to sell next year. If you do decide to go that way, make sure each tenant has specific places to park, who gets to use storage areas, etc. You open it up to fights if you don't.

I'd give it a month or so on Kijiji before you give up and hire a property manager. Considering the type of clientele you're looking to attract, I'd make sure to do credit checks, verify their income (even going as far as asking for bank statements), and ask for at least 3 personal references. Sounds like you've got a property worth close to a million, and you want to be careful. Decent renters will understand that renting a place for $3k a month is a little different than a crappy apartment for $1k.


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## Plugging Along (Jan 3, 2011)

What community is the rental? That is a huge factor. 

You could get $3000 for a executive rental (this would be for those people relocating to calgary with work for a temporary duration, not the big wigs). $2000 is not abnormal for a house anywhere in the city.

If you are in an area with a really good school that is gaurenteed,then it's possible too. There is a school crunch on certain areas (west) and patents are willing to rent homes for. Short time to get their kids in the school. We have had friends offer to rent our shed or basement so they could get the address. 

Also, try rentfaster.ca. I get many more tenants than just kijiji


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## livingthedream (Apr 28, 2014)

I actually went through this process a month ago in Calgary. I rented my place out for $3,400 a month. It is smaller, but it is inner city. I posted on rent faster and had quite a few bites from that, and I posted on kijiji but only got people trying to low ball me so I didn't respond to any of them. It may seem like a lot, but Calgary has a lot of demand and limited supply, so you should get lots of interest. I was also considering a property management company, but in my opinion aren't worth it.


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## kcowan (Jul 1, 2010)

I rented out our furnished place through a property management company (for $3500/mo). Their screening of potential renters was worth the commission (half a month).


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## Rusty O'Toole (Feb 1, 2012)

Having been in the rental business I can tell you a few things. For a start, such expensive houses typically have a strong negative cash flow. Unless you have a real good reason to hang onto it, you would be better off to sell and invest the money elsewhere.

If you chose to rent anyway, you should know that tenants of expensive rentals can be very picky and demanding. Do not be surprised if it takes several months to find a suitable tenant, there are not that many people looking for such an expensive rental. Your best shot might be to rent to someone who is being transferred to your area by their employer. In such cases the employer often picks up the first 6 months or a year's rent. If there are any large companies in your area you might contact them and find out who coordinates such moves.

Do not take a potential tenant's financial status for granted. Do a credit check in all cases. If there are problems in the past run don't walk. There are a lot of arrogant, professional tenants out there who use their legal or executive skills to try and get free rent, or extras they are not entitled to. Don't rent to them, you will be happier.

A property manager is unlikely to be of any use although a real estate agent who deals in expensive houses might help you find a tenant.


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## speedboxx (Dec 31, 2013)

I wont comment on the cash flow of this house, but let's just say the house came at a good price and my costs are easily covered even with a significant reduction in rent. 

I am currently investigating the option of turning this into a dual suite, but my only limitation is the lack of a formal R2 zone with natural gas in the developed basement.

I would just like to see what everyone's experiences are in regards to renting out higher priced houses. For what I am currently asking for rent, this is easily the biggest house you can get for the price. But the ONLY downfall is that it is in a potentially "lesser" neighborhood. That being Applewood in the SE of Calgary. Does not have the prestige of the NW/SW and it is close to the poorer areas of town.


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## Plugging Along (Jan 3, 2011)

I think you may have problems renting for that amount in Applewood as you said. It doesn't have the relatively quick access to downtown. The schools are also perceived to be ranked lower, and their is the stigma that the east side of the city is generally lower income. It is sandwiched near the lower income housing, so there are people that will be concerned with that.

I would check out rentfaster.ca and see what everyone else is renting. Many would choose to have a smaller place on a better location, rather than a nicer place in a lesser location, especially if you are renting for a special lifestyle.


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## livingthedream (Apr 28, 2014)

FWIW, I had a few interested parties in my neighborhood, and their reasons for wanting to rent it varied. My rental is in Altadore. One guy worked downtown so wanted to be close to downtown. One was moving from Vancouver, and wanted to be close to his son who lived in Lakeview, and two of them wanted to be close to a particular school.


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## Rusty O'Toole (Feb 1, 2012)

What you paid for the property is irrelevant. If you could turn it into cash and invest elsewhere for a better return it makes sense to do so, unless there are other considerations. I'm not against real estate as an investment, just pointing out that it you might do better.


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