The Present and Future of Furnished Rentals are in the Long-Short
Furnished rentals are all the rage these days.
But are they really the best way to get the highest return on investment (ROI)? Many real estate investors are seeing the beauty of the Long-Short.
Financially speaking, the best part about renting your property fully furnished is the high nightly rate the investor can demand. The worst part about renting a property fully furnished is the equally high vacancy rates. Short term rental hosts expect 30% vacancy on their properties. Three times higher than the acceptable rate for a 12 month lease. Yet short-term rental hosts are still able to boast profits that double what the landlord next door is bringing in — vacancy schmacancy so to speak.
Many short term rental investors such as myself are now actively choosing a hybrid model. Enter the Long-Short. Years before the world had heard of Covid 19, I was renting my fully furnished rentals homes for a minimum stay of 30 nights or more. Travel nurses were always looking for options like this, along with families moving in and out of the area. I also began to see digital nomads looking for a place to stay while working online. Using this model, I was able to achieve the profits of a short-term rental investor without the concerns of special licensing or upset neighbors. Even the threat of being labeled a party house is annihilated using this model.
In a post Covid 19 world, these Long-Shorts are now more valuable than ever. Almost half of the population can now work from anywhere, as long as they have excellent internet access. Digital nomads can winter in Hawaii, spend spring in Savannah, summer in Colorado and enjoy the fall foliage of New England. All while working 40 hours a week and keeping their dental plan. There is a huge opportunity here for real estate investors. Long-Short guests are professionals who can pay for an entire month’s stay all at once. They have interesting jobs like tech and entertainment and everything in between. The home is kept in excellent condition and deep cleaned every few months between guests. My biggest complaint since implementing this model has been that I never seem to have enough houses available.
Have you considered furnishing one of your rentals? If you are concerned about the downside, consider the Long-Short model. The ROI and high demand speak for themselves.
At Sid Was Here, we specialize in the Long-Short model. Contact us anytime to find out more.