Midterm Rentals: Key Concepts and Strategies
Introduction
- Speaker shares excitement and personal experience with midterm rentals.
- Signed lease with a tenant for a property not yet possessed or furnished.
- Tenant secured until mid-July, with a possible extension until September.
Purpose
- To share key strategies for successful midterm rentals.
- Provide tangible action items for applying knowledge to midterm rental business.
Understanding Midterm Rentals
- Definition: Minimum 30-day stay, fully furnished.
- Platform: Furnished Finder does not allow rentals under 30 days.
- Regulatory and Tax Implications: Different rules for stays over 30 days.
Diverse Tenant Pool
- Common misconception: only for traveling nurses.
- Other tenants: digital nomads, families, insurance claims, snowbirds, etc.
Evaluating Market and Property
- Market Suitability: Use tenant demographics and market data.
- Factors: Population trends, crime rate, property age, ownership percentage.
- Tenant Type Matching: Align property with appropriate tenant type.
Supply and Demand Research
- Tools: Use Furnish Finder for market evaluation.
- Case study: Leck, Texas evaluation using map searches and rental data.
- Pricing Assessment: Ensure property pricing aligns with market demand.
Strategies for Market Research
- Utilize Furnish Finder Map: Detective work to find hotspots, companies, etc.
- Networking: Connect with existing landlords for insights.
- Facebook: Use as a search engine to explore recruitments and local market dynamics.
Listing Strategies
- Pre-Listing: List properties even before closing to gauge interest.
- Data Analysis: Assess leads for market insights.
Furnishing Midterm Rentals
- Approach: Thoughtful minimalism.
- Essentials: Security, pet-friendliness, full-sized appliances, workspace (desk and chair).
Marketing Midterm Rentals
- Active Approach: Ensure listing accuracy and engagement with potential tenants.
- Standout Features: Professional photos, creative amenities tailored to target tenants.
Networking Importance
- Essential for tenant referrals and maintaining high occupancy.
Market Insights
- Booking Trends: Average booking window is short (34 days).
- Stay Duration: Average stay is 93 days.
- Tenant Demographics: Diverse mix including corporate travelers, academics.
Furnish Finder Updates and Resources
- Platform Improvements: Addressing website and tool updates.
- Educational Resources: Podcasts, blogs, Facebook groups.
Conclusion
- Encouragement to explore midterm rentals, emphasizing the potential for pivot and adaptation.
Q&A Highlights
- Discussion on financial expectations and market dependency in midterm rentals.
- Strategic considerations for different property types.
These notes provide a comprehensive overview of the lecture on midterm rentals, highlighting key strategies, market insights, and practical action items for potential and existing landlords.