Lately, thanks to our girlfriend’s initiative, we’ve been picking up extra cash whenever we go out of town by renting out our apartment.
First we scope out the local hotel room rental rates. We set our price about $50 cheaper.
Then we put up an ad on Craigslist in “vacation rentals.” When we find someone for whom the dates will work, we go and back forth with them about the arrangements and what the area is like.
We try to do the key and money swap ourselves, but if we’re going to be already gone, we ask a friend. In that case, depending on payment method, we give our friend a SASE to put the check in or they hold onto the cash.
When our guests’ stay is over, we ask them to leave the keys on the front table except for the deadbolt key. They are then to lock the door behind themselves and slide the key under the door.
Even though the practice is common in New York, most of our friends think we’re crazy. But we’ve done it three times so far and it’s worked out great. Our most prized possessions are our laptops, which we usually bring with us. We take photos of the apartment before we leave, and if there was ever any kind of theft, that’s what renter’s insurance is for, right? (let us know if we’re off-base on this point. Even if so, we have enough faith in humanity, and our own ability to weed out wackos through the email process, to not let it dissuade us) — BEN POPKEN
(Photo: amyadoyzie
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Having experience of the VR market in Florida there really is very little difference between renting out your own home as against your vacation rental provided you get over any insurance and licensing issues.
If you are worried about your possessions, put a lock on a closet and use that to store them. (Whether it be your wife’s jewelry or your porn stash!)
It is very unlikely that the tenants will trash the house. Thousands of private homes here are rented out almost continuously with high quality furnishings, electrical equipment etc and I haven’t come across one instance of a house being emptied of its contents.
Some guests will treat the house badly but the more ‘personal’ you can make the arrangement the less likely this is to happen.
I rent out my barn all the time, sure there is the EWE factor, but hey, there’s some sick folks out there who’ll pay a bunch for a sheep with a man or woman’s face…
A lot of people here in NYC do this. I think it’s just another sad example of this city being too expensive to live in, and people have to do whatever they can to make money sometimes. That’s just my opinion.
I have never read a lease agreement that didn’t forbid this practice.
I would just be worried about the liability angle of the whole thing. We live in such a lawsuit happy society. Ben hasn’t come back and addressed the liability worries at all, just the insurance.
I could never do it though. I get upset when family members or even my girlfriend goes through my stuff. No way I could handle a stranger.
Wow, harsh responses!
I live in New York too, and three years ago this would have sounded totally bizarre–now, I kind of wish my landlords would let me do this while I’m on vacation next week. The rents we pay here in NYC are exorbitant. If you could recoup some of that money while you’re not using the place, why not?
Maybe another reason this doesn’t freak me out– a lot of New Yorkers actually LIVE with strangers for at least some portion of their lives (I’ve moved in to two apartments with people I’d met for five minutes once before), so the idea of someone staying in my place while I’m not there is not nearly as weird as coming home to people I don’t know every night for six months.
Honestly, I’m an extremely private person and I’m not sure that I would be down with this if I did have the option–I live above my landlords and I know for a fact that this would not fly with them, so it never ocurred to me. I wouldn’t expect renter’s insurance to cover anything while I was not there, but it wouldn’t have been against either of my previous leases (sublets of longer than one month were covered, but nothing else). I’ve had my identity stolen with no clue how someone got my information, so I don’t feel like I’m any safer not having someone stay in my apartment. I have a locking safe, and also a spare room that locks with a key. Mail delivery can be stopped, and there’s no reason to believe that every single person out there is trying to take advantage of you.
Interestingly, I have some friends who rent out their spare furnished room as a sort of bed and breakfast to people on Craigslist. They work from home, so they put people up, feed them a couple of meals, maybe show them around and charge less than the cost of a hotel. In return, people visiting the city get companionship, tour guides, and a more home-y feeling place for much cheaper than a hotel. This creeps the hell out of me.
Just as an FYI on filing claims with your renter’s insurance company…
I had some items stolen out of my car one day, about $800 worth of stuff (renter’s insurance covers the items in your car, NOT your car insurance).
That said, since I had a $500 deductible I decided I would try to recoup some of my losses by filing a claim. But before I officially did, I contacted my insurance agent. Well, they said I wouldn’t cause my premiums to rise. Instead, the insurance agency could decide instead to drop you when your term is up, especially since I only had the policy for like 6 months. So, if you are dropped and go look for another company to cover you, they will see that you are dropped and will consider you high risk.
So, I ate the $800 in lost goods because I don’t want to deal with this… not worth it for the $300. So, save your insurance for when it really matters for a catastrophe.
It can’t be that crazy of an idea if they have a section on Craigslist for it. Being a resident of Austin, I have thought about doing this myself for SXSW and ACL.
why would i stay in someone’s place where i could get ripped off when i could stay at a hostel for much cheaper than a hotel? most hostels now have private rooms anyway.
@madktdisease: Many areas of the country don’t have hostels, and lots of hostels are restricted by age and have other rules people may not want to deal with.
Then again, just because people do this all the time doesn’t make it a good idea – and again, NYC folks need to get it through their heads that the rest of the world is not NYC, nor is NYC the gold standard of all things beautiful and right in the world. I have not heard of this happening much here in DC (which is the opposite of any gold standard; more like a deep rust-brown standard) and the folks I did mention it to looked at me sideways when I asked.
I went home and checked my lease last night; subletting or even allowing anyone not on the lease to stay more than 48 hours without the landlord’s permission is technically forbidden. I’m sure most folks don’t ask the landlord when Aunt Sally stays for three days, but if your “guests” get locked out and need to ask the landlord to get in, they’ll probably be A) screwed, and B) cause for your landlord to start seeing what’s up. You could easily find yourself in violation of a lease, which isn’t a good thing in an expensive and hip city like DC, NYC, or Chicago.
Trust me, I know about the expensive rent issue. DC isn’t cheap either. As Mr. Pants Judge can attest, however, things are a little more litigous down here – so maybe that’s the reason for some of my “harsh” responses. This would be a nice way to get your ass promptly sued in Washington.
Nonetheless, I thought this was the consumerist, no the “really cheap folks-erist”. If the goal here is a weird way to make $200, fine – but it’s not really consumerism; it’s eccentric frugality. It is not, however, a financially responsible idea by any stretch, which I think is underscored, not countered, by the fact that so many “poor young urban folks” embrace it. They need the money, and are more willing to do riskier things.
The vacation home rentals / exchange example is a really poor analogy, I think. When you trade houses for a vacation, you’re trading things YOU own with someone else who owns something of equivalent value. Don’t fuck up my house, I won’t fuck up yours. There’s a mutual trust, and people who own homes are generally, as a population, more financially secure than a NYC apartment dweller who “really needs to make an extra $50″. I’d say they’re less likely to be in the dire financial straits which beget scammers and the like.
With the Super-8 Apartment Motel, you’re renting something you don’t own to somebody who’s got nothing more than $200 in cash vested in the whole deal. But hey, if you’re just gonna tell yourself it’s about faith in humanity, that’s fine – but where I come from, that’s called being naive and a sucker. Mean, maybe, but often true.
i think it’s an NYC thing. renting for so long for such high prices might drive me to try something similar, especially if i went on vacation for a significant amount of time. it’d be really hard to justify paying hundreds of dollars in rent PLUS hundreds of dollars in hotel charges on a two-week (or longer) vacation. as it stands, though, i think i’ll just lock up my cheap non-NYC digs when i go somewhere, and stay with friends when i visit new york.
@tcp100: “Clue: it wasn’t Peoria.
Naw, here they’d just cut you and take your money for meth.
(I kid, I kid. We leave our windows open at night and let every child in the neighborhood play our Wii unsupervised.)
@wilykat: “or at an apartment that they found on Craigslist (slightly lower price, higher risk), which people are most likely to choose the second option?”
Actually, a lot of folks prefer what’s called a “self-catering” accommodation in Europe — a house or apartment or condo or hotel room that comes WITHOUT maid service and WITH cooking facilities. It dramatically lowers the cost of a vacation and, particularly when you’re gone for a couple weeks, it’s nice to eat real food at home instead of restaurant food every night.
These are fairly widely available in much of Europe, but much more difficult to find in the US (and an “extended stay” hotel really just isn’t the same as self-catering). If I were visiting somewhere for a couple weeks, I’d definitely consider this; in fact, we try to do self-catering when visiting my in-laws, but they live in a resort-y area so there are what they call “vacation condos” available, which fills the same need.
Other than liability issues, it’s not that different than a private B&B.
@tcp100: No NYC isn’t the gold standard for everything but people are different and do things differently here as they are/do anywhere else in the world. OMG someone doesn’t think and act the same way you do, BLASPHEMY. WE MUST CIVILIZE THOSE HEATHENS. OUR NAME FOR WHAT ATHEISTS SHOULD CALL THEMSELVES IS CLEARLY THE BEST AND THE MOST LOGICAL.
So what if Ben and others in NYC do this, how does that effect you in anyway shape or form? He’s just giving people a suggestion to make some money with a place that will be idle when you’re not there. If you don’t feel comfortable doing it then don’t. Do you really think that many people in NYC would continue to do something like this if they got robbed?
I would do this if I didn’t have a roommate. I think you just have to be good about weeding out the bad apples. Have phone conversations. Do your homework. If you don’t find anyone, then oh well.
Hmmm.
Let’s see.
A cash transaction.
A load of trust invested in a total strager.
Any number of liabilities you expose yourself to.
Yeah.
Sounds like a great idea.
Let’s take a look at some issues:
I own a laptop, a desktop, a 27inch tv, and a 50 inch DLP tv. I wouldn’t expect any of that to still be there.
What if your ‘guests’ throw a party there?
What if your ‘guests’ use your house for illegal activities?
what if they ship drugs there?
If someone falls and hurts themselves there, you aren’t covered by insurance if you’ve rented the place out illegally and against your lease.
Your landlord would have grounds to evict you (potentially) based on a number of factors, including a violation of the lease agreement.
Seriously. How is this even a little bit of a good idea. You are essentially giving someone the run of your place, with no one there to do anything about it in the event something goes horribly wrong.
Really. Really. Really bad idea.
DO NOT DO THIS.
Sure, your prized possessions might be your laptops. But if some dillweed gives you cash and empties your place while you are gone, your insurance will likely not cover you. Most likely, you are underinsured (most of us are), and would end up with SOME of your stuff, but not all.
Just imagine coming back to your apartment and finding no bed, no clothes, no tables, no tv’s, nothing in the kitchen, all the pipes removed, all the fixtures and faucets removed, no fridge, no stove, no microwave, etc.
And all for a few extra bucks while you are gone.
The 60′s are over, folks. if you wouldn’t pick up a hitchhiker, why give a transient the keys to your home?
Not worth it.
Hotels in Chicago run around $210 a night.
Am I willing to risk losing everything in my home for $160 a night? Hell. No.
Is this the ‘ripofferist’ or a website dedicated to helping consumers? Couldn’t you conceive of hundreds of people following your instructions to the letter, only to have their lives destroyed, their property damaged or stolen, getting evicted and having their insurance claims denied?
Bad idea, consumerist.
Bad form.
This exposes people to harm instead of warning them or protecting them against it.
Furthermore, this is likely a violation of your lease agreement.
At least it is in Chicago.
Most standard Chicago leases contain the following clause:
“8. USE OF PREMISES: The premises shall be occupied for residential purposes only, and only by the persons disclosed in this lease and on the Application for Lease submitted by Lessee in connection with the renting of the premises.”
@Ben Popken: “Let’s not forget the risk the other party is taking as well. How do they know we’re not going to give them bogus keys to a fake apartment? I think the risk on both sides of the arrangement help make it a more honest transaction.”
This assumes the other person is not a conman or other scumbag.
Even assuming that you rent to a decent law-abiding citizen, how do you know they won’t invite a scumbag over. I’ve had roommates who invited people over who’ve stole me blind.
I agree that the majority of the time you won’t have a problem. Then again a drunk driver doesn’t have an accident most of the time. The problem with both is that when it does happen it’s really bad.
@kjherron: This is a completely different beast. Using HomeExchange, you have a third party that has the credit card and contact information of the other guy. This makes it a lot harder to scam somebody.
i also agree that this is a horrible horrible idea.
does meeting in person really mean that they’re not scammers. and if you’re doing a cash transaction, there’s probably no way to track them down. if you look at 419eater.com, you can see what scammers are willing to go through just to get your money.
i’m not sure how securely you keep your stuff at home and the fact they might even have access to your mail terrifies me.
let me put it this way. Would you ever ask a complete stranger to housewatch for you, and in the event it is a complete stranger (even if they were recommended to you by a friend), how much background check would you do? And this renting your apartment case, you’re giving a stranger complete access your entire house for a few benjamins.
There was an article earlier talking about making money on 0% balance transfers by dumping the money into a high-yield savings account.
You (Ben) said, “Personally, though, we don’t think it’s worth the effort or risk.“
I personally think you’re dealing with more risk with this apt rental scheme than the 0% balance transfer.
Sometimes this blog gives good advice. Other times, I can’t believe what I’m reading.
I have successfully rented apartments from people I have found on Craigslist, who were either going away for the summer, or for the Christmas vacation.
Since I never had enough money to pay for a hotel, or the desire to stay uncomfortably in a hostel, I found the most economical and comfortable way to spend time in Montreal was to sublet a place for a short period of time.
This summer, I was planning on renting a place from a well known journalist. I run a respectable business, and so does my husband – so we’re pretty easy to screen, and so is she.
I find it shocking that this thread is evoking such strong responses – subletting your place for a few days is certainly not for everyone, especially if your home has valuables that are important to you. But I personally think that if you’re responsible about who you choose, it can be a winning situation for the everyone involved.
It’s a good way to make your neighors hate your guts. My next-door neighbor does this all the time and it makes me crazy. First of all, we both have criminally cheap rent, so it’s not like she needs to do it. Second, she always subleases to inconsiderate morons who bug the crap out of everyone else in our very small building by acting like they’re in a hotel–buzzing all the bells to be let in, being really loud in the halls, etc.
More effective than apartment insurance is neighbors who’ll look out for you. Good luck if you alienate them.
@BrigitteT: There’s a major difference in a regular sublet than what this post is suggesting you do. When you rent out or sublet your apartment/house to someone else, you should be doing a full background check on the individual and taking a security deposit in case anything gets damanged.
@tcp100: Trust me, I know about the expensive rent issue. DC isn’t cheap either.
Compared to New York it is. No, seriously – it’s one of the reasons I’m moving there (from New York) after graduation.
I considered doing this in a period of financial panic a few months ago. I’m with Groupie, though – I’m a little too paranoid. But I, too, know people who do this all the time.
and, @ Krunk4ever – maybe one *should* get a background check when one sublets, but most of the people I know don’t.
(The one thing about this that would work for me – with my laptop removed, I’m not sure all the contents of my apartment total would be worth $250.)