We roll with the punches around here. I think it is in my DNA, honestly.
And when the new rules for Airbnb properties in Kansas City came down, I decided for various reasons, that focusing on turning Cottage West and Cottage East into bed and breakfast properties was simply no longer viable. And frankly? Turning them into rentals is a far better option – it means less work on a daily basis – I won’t have to clean up after each visitor or re-stock supplies, or even furnish the properties. It also means less insurance cost – a rental house versus a house you have furnished with electronics, furniture and more garners a higher annual rate. And I wouldn’t have to cover utilities, as those are typically separate from the rent when renting out a house.
Savings, less work, and less turnover – what’s not to like?
And I woke up yesterday with an even bigger concept – two rental properties in each building, thereby giving us the possible income we had hoped for from Airbnb, but still with less work and less cost.
In both the Cottage East and the Cottage West there are basements. Both have these jenky stairs, especially Cottage East where you have to bend halfway over to avoid banging your head. I had decided to simply utilize the basements for our own needs, and remove interior access to them, but yesterday morning I thought, Why not set them up as a studio or one-bedroom basement apartments separate from the one upstairs, with their own electricity meters and then just pay for the water service?
I ran the idea past my husband, adding in the concept of our own house as well. We have a large, unfinished basement with dirt floors. It too could be turned into a one-bedroom apartment with a kitchenette. This could serve as an individual private space for my dad, or for our daughter when she wants more independence in her late teens or early 20s, as an income-generator, and in our later years, as a place for live-in help.
Now, back to the Cottages for a moment. We figure it might be difficult to separate water hookups, so we could provide water as part of their rental contract up to a certain amount, once it goes over that amount it is divided equally among the total number of residents in a building and added to their rent. All of it would be clear in the rental contract and agreed upon by all tenants. The electricity can be separated by floor and an individual breaker installed on the main floor for one tenant, while the basement tenant had their own unit in the basement.
In Cottage West, the basement tenant could enter and leave via the backyard and our plan is to eventually pave a driveway from the front of our property on 10th Street all the way to the alleyway, creating parking for everyone in Cottage West.
In Cottage East, there will be an adjacent parking pad constructed off of the alleyway for both the main/upstairs tenants and the basement tenant which they can access by walking through the backyard gate.
So…more income, less work, off-street parking for tenants and us if we want it, and eventually a separate living space for my dad. In other words? A win on all counts.
By my figures, it will take a total of five years. Two years until Cottage West is complete, another one plus for Cottage East and about one year for our basement apartment.
I like to think (and plan) long term, folks. It also means we are not incurring new debt, while reducing and eliminating any remaining debt. An all-around win.
I’ll keep this site, and this blog, for now. I see it turning into a website that profiles The Cottages and any potential future holdings, so that potential tenants and our neighbors know exactly what to expect from these homes. Clean, safe, insulated and quality rental homes that will be a benefit to the neighborhood. After all, our future tenants will be our neighbors, we plan to choose wisely!