Multifamily Short Term Rentals: The Three Bears
If STRs can move you from 91 percent economic occupancy to 94 percent economic occupancy, do you owe it to your investors to better understand how to achieve this? Units that may not rent easily by the year, may be prime candidates for overnight lodging.
On nights and weekends, guests rent my 1,000 square foot office for meetings, presentations and parties. It’s a live-work loft with street access. In a good month, I can net $1,600 using Peerspace to advertise and book it (Peerpsace is the “Airbnb for office space.”) And since my office mortgage is $1,600, Peerspace’s day rentals are a powerful tool in keeping it affordable, as well as activating my otherwise dormant space.
If I owned apartment communities, I’d be looking at applying the same principles to my portfolio. Many options have emerged to monetize short term rentals fit different tolerances for risk, operational complexity and exposure to the lodging market. Here are three small/medium/large scenarios where short term rentals can add income to multifamily properties. We’ll be discussing all of these and more at the inaugural Flexible Rentals Investment Conference (flexrentals.org) October 22-23 in San Francisco.
