Renting while still under construction - do-able?

Good evening, I wanted to get the forums input on renting one of our units prior to the house being 100% complete. We have a legal 3 family house and our budget has gone out the window quite some time ago. Having one of our units rented would really help our cash flow position and ease our financial stress of the house. That being said, what I had in mind was renting the very top floor of our brownstone. I think I could have the common area of the house all complete, as well as that particular unit. The unit below it would still need work, as well as our owners duplex. I’m concerned with pissing people off with the construction noise. We plan on doing a vacation rental on the 2nd floor but ideally would like a permanent tenant on the top. Do you think it’s do-able? The remaining floors would just be finishing work such as painting, moldings, etc. All floors are completely sheet rocked. What do you all think? Rent it or must wait until the house is 100% complete?

stuyheights

in Real Estate - General 9 years and 2 months ago

5

81

Please log in, in order to post replies!

5 replies

Newest Oldest

resident2 | 9 years and 2 months ago

string(1) "1"
object(WP_User)#5035 (8) {
  ["data"]=>
  object(stdClass)#5002 (12) {
    ["ID"]=>
    string(6) "181002"
    ["user_login"]=>
    string(9) "resident2"
    ["user_pass"]=>
    string(34) "$P$BYKCrEpDU34.3RJghRPk8/Xp1XpCve/"
    ["user_nicename"]=>
    string(9) "resident2"
    ["user_email"]=>
    string(21) "Jamanda1255@Yahoo.com"
    ["user_url"]=>
    string(0) ""
    ["user_registered"]=>
    string(19) "2017-08-10 14:07:33"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(9) "resident2"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(181002)
  ["caps"]=>
  array(1) {
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(1) {
    [0]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(1) {
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

So long as the apartment itself is finished and the work in the hallways etc is kept as clean and quiet as possible especially during evenings and weekends, when the tenants would be home, there should not be a problem so long as you are honest upfront. There will be some tenants that will not deal with it, but you will find others that like that it is all new etc and can see that it will get done. Yes, the rent may be slightly discounted, but that is often the case if they are the first ones to move into a vacant building. That is a bigger concern to some tenants, they will want to know when you are moving in. The vacation, furnished route is problematic with construction going on, they are here for a short time and do not care that it may get better. They just will not deal with a bit of dust etc. and strangers showing up every morning waking them up!

stuyheights | 9 years and 2 months ago

string(1) "1"
object(WP_User)#5027 (8) {
  ["data"]=>
  object(stdClass)#5039 (12) {
    ["ID"]=>
    string(5) "17815"
    ["user_login"]=>
    string(11) "stuyheights"
    ["user_pass"]=>
    string(0) ""
    ["user_nicename"]=>
    string(11) "stuyheights"
    ["user_email"]=>
    string(20) "biggiealex@yahoo.com"
    ["user_url"]=>
    string(0) ""
    ["user_registered"]=>
    string(19) "2008-09-29 00:15:40"
    ["user_activation_key"]=>
    string(20) "Kyzw5mBF7hhtZpsIO0VA"
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(11) "stuyheights"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(17815)
  ["caps"]=>
  array(0) {
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(0) {
  }
  ["allcaps"]=>
  array(0) {
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Thanks guys. I appreciate your input and suggestions. Im even kicking around going the vacation rental route and just being transparent about it. What do you think about that idea? Only con to that is we would have to furnish it.

dorkofwindsor | 9 years and 2 months ago

string(1) "1"
object(WP_User)#5035 (8) {
  ["data"]=>
  object(stdClass)#5041 (12) {
    ["ID"]=>
    string(6) "176774"
    ["user_login"]=>
    string(13) "dorkofwindsor"
    ["user_pass"]=>
    string(34) "$P$Bov.472kQmY8OGlKN.dDXa5nt5gnOG0"
    ["user_nicename"]=>
    string(13) "dorkofwindsor"
    ["user_email"]=>
    string(23) "dorkofwindsor@yahoo.com"
    ["user_url"]=>
    string(28) "/forums/users/dorkofwindsor/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:25:48"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(13) "dorkofwindsor"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(176774)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

You will have to give a discount and be upfront with a tenant – preferably one that leaves at a normal early hour for work and comes back late (i.e. a manhattan professional). Work at home or freelancers will prob not work well. Having said that, sounds like a plan to me.

Arkady | 9 years and 2 months ago

string(1) "1"
object(WP_User)#5075 (8) {
  ["data"]=>
  object(stdClass)#5077 (12) {
    ["ID"]=>
    string(5) "14677"
    ["user_login"]=>
    string(6) "Arkady"
    ["user_pass"]=>
    string(34) "$P$BSLpIhH1FLNbV2Qdpb/F67tu7brrgw1"
    ["user_nicename"]=>
    string(6) "Arkady"
    ["user_email"]=>
    string(20) "rkdillon@verizon.net"
    ["user_url"]=>
    string(21) "/forums/users/arkady/"
    ["user_registered"]=>
    string(19) "2008-08-04 21:50:38"
    ["user_activation_key"]=>
    string(20) "HL9P1Plx6tnm1l8GiJvd"
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(6) "Arkady"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(14677)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Do you plan to rent it yourselves or go through a broker? Dave’s idea of a lower rent inducement is good & you’d certainly have to be candid about the situation in order to avoid future problems w/ the tenant.

daveinbedstuy | 9 years and 2 months ago

string(1) "1"
object(WP_User)#5041 (8) {
  ["data"]=>
  object(stdClass)#5045 (12) {
    ["ID"]=>
    string(4) "3864"
    ["user_login"]=>
    string(13) "daveinbedstuy"
    ["user_pass"]=>
    string(34) "$P$BtJYyObAQmff2MQp.qFP7/kmwU1bBZ1"
    ["user_nicename"]=>
    string(13) "daveinbedstuy"
    ["user_email"]=>
    string(19) "djl135e54@yahoo.com"
    ["user_url"]=>
    string(55) "http://bstoner.wpengine.com/forums/users/daveinbedstuy/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:23:53"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(13) "daveinbedstuy"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(3864)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Assuming you are not waiting for a C of O, it is perfectly legal to do so. I think if you start interviewing tenants and explain the situation you will likley find some who will be amenable to the situation. Maybe a slightly lower rent for one year as an inducement. As long as their common area and certtainly their unit are complete. Keep the noise to a designated time but if you run into issues with your contractors over that, best to get the work done first and not piss the contractors off.