Orion Haus will create 1,588 units of short-term rentals throughout the Midwest and Southeast U.S. after being tapped to manage 10 communities.
A private investment group hired the management company to convert its new multifamily developments in and around Austin and Houston; Memphis, Tenn.; Orlando, Fla.; and Atlanta into short-term rentals, Kanan Whited IV, co-founder of Orion Haus, told Multi-Housing News.
Like its other properties, Orion Haus will put into place its system that allows residents to rent out their units for home-sharing for overnight, weekend or extended stays. The management company’s platform allows for the publishing of listings, digital lock access for guests and housekeeping when guests check out. Orion Haus also hires staff for its communities that acts as concierge for both residents and guests.
According to Orion Haus, its short-term rental model creates a 10 percent higher net operating income for the communities by combining traditional long-term leases with profits similar to a hotel structure. Orion Haus is also expecting more demand for short-term rentals stemming from Airbnb’s recruiting efforts for more hosts, as the home-sharing company noted in its first quarter earnings call this month. While short-term rentals were on a downward trend due to the COVID-19 pandemic, the sector offered strong rebounds in certain areas of the U.S.
WAITLIST FOR SHORT-TERM RENTALS
Scott Liebman, Orion Haus’ CFO, said in prepared remarks that the company is looking for immediate deal flow in the Southeastern U.S. and could fully occupy 25 empty buildings this year. Currently, the company has a waitlist of more than 15,000 renters who are looking to sign 12-month leases at home-sharing communities managed by Orion Haus.
The management company is also looking to expand its portfolio into Fort Lauderdale and Tampa Bay/Clearwater, Fla.; Charlotte, N.C.; New Orleans; Dallas and Charleston, S.C., for 2021 and 2022. Whited also told MHN that Orion Haus has more than 5,000 rental and condo units in various stages of development.
