How Much Rent to Charge?

[Biblio]

I own a house in a private location on a couple acres, it has access to well water and power but the inside was never completed and I don't want anyone to live in it. How much rent should I charge to allow a Prop. 215 grow in the house?

 

[Haggardass]

So you dont want people to live in it? But your ok with growing in it? Thats kind of a broad question honestly, theres no telling how much you should charge dont you know the value of your home?

 

[Dz1PnK]

whats the usable square footage? find similarly sized homes for rent in the area for compairison, id say it should be less if noone is actually gonna be living there. ive slept in a veg room before, but the house was finished, with a front room to look normal in case you had to open the door and talk with someone, and the kitchen and bathrooms were working.

 

[Seamaiden]

I own a house in a private location on a couple acres, it has access to well water and power but the inside was never completed and I don't want anyone to live in it. How much rent should I charge to allow a Prop. 215 grow in the house?

How are you going to legally rent a structure that cannot legally be habitated? You're going to have some issues from a legal standpoint. Is the house or area zoned for ag or commercial use, or just residential? How would it work on paper, or are you going to do this with a handshake? Maybe if they put a trailer on the property it wouldn't be a problem.

The other issue is what rent is normally in that area, and whether or not there are new zoning issues. I would take a large deposit, because even if the house isn't finished on the inside, the structure itself, electric, utilities and services such as water and septic, all have value and can cost a qualified metric shit-ton of money to repair if your "215-compliant" renter decides to DIY any of it, or does as many renters will do and ride it hard & put it away wet, if you know what I mean.

P.S. I have qualified a metric shit-ton as being approximately 3,300lbs, or what will fit into a Bagster.

 

[fishwhistle]

8 1ks should pay the rent plus a little xtra...

 

[bonkia]

I live in mendo very common here. Hell if you live near me hit me up ill rent it lol. Some people do this on a % base. Some charge 500 over market rent.

 

[squiggly]

I'd say for the purpose intended that an unfinished property is actually a BONUS when compared with a finished one (in the eyes of the lessee).

Legal issues are your biggest hump here, as has been suggested. My advice is to retain a local lawyer and discuss this with them. If there are legal concerns, he should know about them. You DEFINITELY want to establish some kind of liability indemnity for the lessee (in the event they should burn down your house)--but at the same time you'll want to make sure you have proper insurance for the property.

As everyone else has suggested, square footage is the main concern here--you can literally just price out some homes based on price/sqft and then average out the values (making sure to avoid homes that are recently updated or have crazy amenities). If you can find some large sqft apartments in your areas pricing these out might give a better value.

That's what I'd do. Find some run-of-the-mill apts (or houses).

Price them out at price/square foot. Take your square footage and multiply it by the average value you get, and whamo. Maybe add 250-500 for yourself, as being a 215 friendly landlord is definitely something that is worth money.

It definitely matters if you have plumbing in there in terms of price, how unfinished is the property? Does it just need drywall and fixtures or?

 

[swisscheese]

I don't think it is worth more just because someone is going to grow there. That's silly thinking honestly as the person who rents it is going to have to invest a lot to make it useable as you are saying basically it's uninhabitable or a dump. More information would be nice like everyone said what's the square footage etc? And for being a new farmer it seems like you're just posting to find someone to rent your house.

 

[Seamaiden]

In my county the house size makes no difference as far as the law is concerned, and neither does parcel size. Many homeowners who rent don't realize this, but Amador limits rent to $1,500/mth NO MATTER WHAT.

In California no one can take money in exchange for renting a habitation legally if the leasee is planning on living in that structure. It's got to have something like a certificate of occupancy (aka a C of O). Not all counties use C of Os, but I know El Dorado does and Amador doesn't, Amador uses a different type of certification that's linked to the final inspection, I can't remember what it's called without looking through a qualified metric shit-ton of paperwork.

Anyway, if you *do* try to rent an uninhabitable structure, the lessee can stiff you for the rent and you can't do a fucking thing about it. It's considered to be an illegal contract by the court, because the property owner could not LEGALLY lease or rent for habitation. That really needs to be spelled out.

Alright, my head wants to spell it "leasee" and my spellcheck wants it to be "lessee." Which is correct?

 

[squiggly]

Lessee and lessor.

 

[ttystikk]

Having been on both sides of the tenant/lessor table at different points in the past, I would say that you have several serious issues; habitability is the main one, along with ensuring compliance with all applicable requirements for a habitable residence. If you try to rent it as commercial space- no habitation- you're likely to have another raft of legal hurdles to overcome, this time having to do with whether the property is properly zoned for commercial/industrial space.

Next, growers SUCK as tenants; the damage they cause can be catastrophic- who needs fire when you can flood the whole place, ignore it and get black mold?- and the 'modifications' they make can be very expensive to repair. If you want a grow in there, I suggest you at least oversee it yourself, if not actually run it. The worst part is the amateur growers tend to be the most destructive, with the least to show for it after they've finished. At the very least, make damned sure you examine the references for your prospective grow-renter; he better have a kick ass list of references for his grow ops as well as rental references!

Finally, just because it CAN be a growhouse doesn't mean that's the best possible use for it. Examine your other options, like the cost to finish it and then rent or sell it.

 

[Biblio]

Thank you for all the replies. I actually have someone who wants to rent it and am not sure what to charge. It is about 1500 square feet on about 1.25 acres. The house is completed with drywall and a budget bathroom and kitchen but it has been neglected for some time and it needs a new septic system and I'm not sure I want to put any money into it.