Why don’t you have 2 AirBnB units in every one of your Multifamily properties?
10+ Business Benefits of Short Term Rental Usage
A clean, well designed, fully furnished “show” unit will close long term leases fast, while attracting a higher caliber renter.
Exposure your properties to a wider audience. It’s better than free advertising
Gain 2-3x monetary returns on the same investment
Diversification of income streams
You and your team will learn a new set of skills - We are either growing or dying
Add new skills to your investing and team “tool kit.”
Better understand your product. Short term guests are programmed to provide honest immediate feedback about the quality of their stay
How many nights do you sleep in your property? Observe first hand what’s happening at your properties from an operations and tenant perspective.
Show potential investors and partners that you are future-focused and know how to stand out from the crowd.
Minimal investment in furnishings and photography, create a new way to generate cash flow from idle inventory
Attract corporate clients and mobile workers looking for short to mid-term furnished rentals.
Rental Arbitrage - Airbnb pros are leasing units to run as short term rentals and making great money
The reasons Multi-Family Real Estate is booming are the same reasons that Short and Short(er) term rentals are booming, and should not be ignored. There’s been a significant increase in multi-family rentals. Numerous reports attribute this uptick to individuals renting as they spend more time saving for their first homes. But, unlike previous generations these renters have different lifestyles, goals, and preferences. They may be renting longer in the number of years, but they tend to stay at the same property for less time. Why? They readily move for new employment opportunities, desire walkability and eco-friendly amenities, value travel, and actively seek new experiences.
Smaller budgets and anticipation of future career moves cause these newer generations want turn-key properties that allow them to immediately begin living their best life in their new location.
Related Trends in Adjacent Industries
Several years ago consumers bought lots of cars. A few years ago they leased cars. Now consumers use Uber & Lyft. How long will it be until consumers begin to summon an autonomous driving car to take them where they need to go?
Mega companies like Google, Apple, GE, and Tesla are all looking to the future as they invest billions in autonomous driving. Apply the same model to consumer home ownership, long term rentals, and now short term rentals. Do you want to invest in the future rental trends are pointing towards or sit back and wait for WeWork and Amazon to scoop you?
Here’s a personal story. I am not a Millennial, first-time home buyer, or a corporate employee. I am however writing this article from a gorgeous fully furnished “Short Term Rental” apartment in Greece (Pictured Above). I moved here with my wife and son in July 2019, and signed a 1 month lease followed by a 10 month lease. I signed the first lease from the United States without seeing the apartment in-person. This is not the norm; or is it becoming a new norm? I located the apartment through the website of a series B funded company, BlueGround. They offered an extensive selection of move-in ready apartments in all the major neighborhoods of Athens and do the same for 8 additional cities worldwide.The flexible one month lease allowed me to select a place for my family halfway around the world with the risk of getting locked in long term - I was essentially testing the space and location before committing to a longer lease. I am not however the primary target audience for this short(er) term leasing platform. BlueGround targets corporate travelers who stay on assignment in a city for 1-3-6-12 months at a time, as a lifestyle upgrade from living out of a sterile hotel for that time period. BlueGround does not own the unit they have rented to me, yet they are renting longer term and re-renting in a rental arbitrage. So why doesn't the owner of my building rent to corporate travelers directly, wouldn’t she make more money? It would seem the answer is twofold. 1. Perhaps the owner lacks the operational skills or desire to make a greater return. 2. BlueGround has a platform for showcasing the owner’s property to travelers like myself from across the globe. Those two reasons seem like small obstacles given there is an abundance of professional advice to be found, rental websites are easily constructed, and using the Airbnb platform allows hosts to showcase their rentals to 150 million users worldwide.
It all starts with Getting Started - My name is Culin Tate and I know how to build top ranking Airbnb listings. I coach hosts on an ongoing basis. I don't offer a generic program. Instead I work directly with real estate investors to accomplish their specific short-term rental goals in their market(s).
Excuses, Assumptions to Test, or Obstacles to Overcome
I don’t have time to learn this from scratch
Unsure of regulations in my state
My properties are in the wrong place
I don’t know how to decorate/furnish the apartment
I’m worried my tenants will upset short term guests or vise versa
My property manager is too busy (or too bored?) to meet more renters
I don’t know where to start, how to build a listing, and be successful in this new space
I don’t want to invest in a yet-to-be proven trend
Are you willing to test some of these assumptions, and overcome a few obstacles? I have always believed that real estate investing is about one thing - Overcoming obstacles. I have the experience help you shatter the few small obstacles that might be holding you back from capitalizing on the convergence of the two most powerful trends in real estate. You don't have to go it alone. Let me be your Host Coach.
Resources and Further Reading