Welcome back! Today we're going to talk about our very first mid-term rentals. We will be covering how we set up our first mid-term rentals and how we started managing our first mid-term rentals.
Amelia’s first ever mid-term rental was in an 11-unit apartment building located about five minutes outside of downtown Des Moines, Iowa. She had seen a few people on Instagram doing the mid-term rental thing and was looking for ways to increase the cash flow on a brand new property that they were going to be purchasing. Before they she and her partners even purchased the property, they decided they were going to try the mid-term rentals strategy out and would start by converting one of the studio units into a mid-term rental to test the waters and see how it went.
With this property being all studio-style apartments, it would make a perfect mid-term rental layout. They could keep their furniture expenses low and as a bonus, it was close to all of the downtown hospitals.
This particular property Amelia furnished mostly using Facebook Marketplace purchases for right around $3,000. Once it was furnished and ready for tenants she listed it on FurnishedFinder. Within about 24 hours she had her first inquiry; he signed the lease and the rest is history.
But when this particular tenant moved out, he gave no notice, so he obviously did not get his deposit back. However, it only sat vacant for about one week before it was occupied again.
One thing we want to add is that we do a few key things to protect ourselves in the event that someone were to cancel at the last minute because let’s face it, plans change. In these instances we simply state that the tenant is ‘on the hook’ for the rent until we find a new tenant - and we will do our very, very best to fill the unit as quickly as possible (which is rarely more than two weeks). We also like to use referrals for our regular traveling nurses - especially if they can find someone to split the unit with them.
We like to look at mid-term rentals like a puzzle: how can you line up all of your mid-term rentals so there's a minimal vacancy.
Grace prefers to look for those wanting a minimum of a 3-month stay because it is not her goal to be a short-term rental host. The exception here is if the has only a few days or weeks between tenants and she will offer the unit as a short-term rental at a higher nightly rate (think Airbnb), or someone who is willing to take over the remaining time on a canceled rental. For
Grace’s goal is minimum vacancy and has had really good luck with people who have stayed and continued to extend their stay. The reason for that is that she makes sure that her units are nice, but not necessarily over the top. They don't have a bunch of extra amenities, but they have what you need, they're cute, and they're clean.
Investing in real estate provides so many opportunities to be creative with the properties that you already have, or new properties that you're purchasing. But we just love the mid-term rental strategy for that reason.
If you are interested in learning more about mid-term rentals, we have a couple of options for you. The first is our free MTR Starter Guide which covers the three most frequently asked questions that we get about midterm rentals. The second option is our Mid-Term Rental Profit Academy course.
Thanks for tuning in, everyone. Catch you in the next episode!
Resources:
WIIRE 121: How to Combine Short & Midterm Rental Strategies with Kelsey Porter
WIIRE 120: What Should You Be Looking For When You Do a Property Walk-Through?
WIIRE 119: Balancing CEO and Stay-At-Home Mom Life with Kristen Witalka
WIIRE 118: What Financial Tasks Should I Be Doing Weekly, Monthly, & Yearly in my Rental Business?
WIIRE 117: Small and Mighty Real Estate Investing with Chad Carson
WIIRE 116: How to Use Free Marketing for Your Rental Business
WIIRE 115: How to Implement the Entrepreneurial Operating System in Your Business with Maya Bovshow
WIIRE 114: Our CEO Roles as Full Time Real Estate Investors
WIIRE 113: Fourplex From Hell: Resilience as a Rookie Investor with Katie Hofer
WIIRE 112: Legal Contracts You Need in Your Real Estate Business
WIIRE 111: Lessons Learned While Self Managing Rental Properties
WIIRE 110: Ask A&G: Midterm Rental Frequently Asked Questions
WIIRE 109: House-hacking New Build Homes Tax Free with Monica Fullerton
WIIRE 108: Best Tenant Screening Practices
WIIRE 107: Starting Your Real Estate Journey At Any Age with Liz Connelly
WIIRE 106: Increasing Your Profitability without Buying More Real Estate
WIIRE 105: Midterm Rental Operations with Jamie Banks
WIIRE 104: Handling Maintenance Requests Like a Pro
WIIRE 103: Midterm Rental Co-Hosting and Credit Card Hacking with Jaina Pallasigui
WIIRE 102: What Can You Expect At A WIIRE Retreat?
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
U.S Property Podcast
Aligned Money Show
Dubai Property Podcast
The Ramsey Show
The Clark Howard Podcast