In the short-term rental riches will discuss investing in real estate with a specific focus on short term rentals quick action items to wire. Scale your portfolio I’m your host Tim Hubbard. 

Welcome back to the short-term rental riches podcast I’m happy you guys are here again as always before we jump in today if you haven’t yet if you could jump on iTunes or stitcher or wherever you enjoy listen in the podcast and just leave me a quick review and a rating I’d really really appreciate it and help other people find the podcast as well I know that some of you have already and it’s exciting to see we’ve had thousands of downloads already and it keeps going up and up so thank you so much for listening then well today we’re gonna talk about hotels and how they’re changing how they have changed and how Kobe 19 has forced them to change and then some of the benefits for us a short term rental investors why we are positioned pretty well so we’ll go through that let’s just go ahead and start off and you know what at a hotel used to be it it’s changed a lot of the ball do you know he used to go and be checked into a counter checked into a room oftentimes rooms were identical to the one next to you and there could be hundreds of those right they built hotels the same way well that is changed and that will continue to change we’ve seen a ton of little boutique hotels pop up or designer hotels this intense referred to and they’re cool you know I think they’re great but they’re basically modeled after short term rentals each room is typically a little different they usually have kitchens in there and they were building them with more social spaces now that’s tricky because. Everything we just went through with code so we’ll talk about some of the specific code impacts but that’s kind of what hotels used to be you know they were cookie cutter there were 250 square feet very plain and that’s part of the reason that short term rentals a blown up so much of people enjoy the experiences staying in the short term rental they’re different and that’s what hotels are trying to do now you see hotels now really taking advantage of some of the technology out there and they really are shifting away from a full service type of accommodation. But not out of their own free will at least until now our recently actually being forced by Kobe 19 policies to change a lot of these things and as a hotel you know it’s a big operation it’s a big business it’s a huge industry but they’re just not as nimble as we are with short term rentals and they also don’t have as many backup options as we do before buying properties that makes sense as long term rentals but that we can use as short term rentals so there’s no doubt about it the travel industry was hit hard for everyone for short term rentals as well but I saw on a recent study that hotel occupancies were down to 22 percent during the height of cove in 19 now what they’re short terminals if you have a great property the reality is 22 percent occupancy you couldn’t cover your bills I have many properties like that now a hotel running at 22 percent occupancy who who. That is rough that is rough they got hit hard. In the way that hotels were built and set up a lot of their additional revenue sources have got hit hard as well I’m talking about banquets specifically in the events those are that’s a huge space for hotel actually worked and hotels one of my first jobs serving banquets I work for you know 5 years doing weddings at a hotel and we did it time we did they had 3 banquet rooms sometimes we did 2 weddings in the same day one in the morning or early afternoon the one at night so we were doing like 5 sometimes more weddings per weekend and they charge a lot for those. Now with cove in 19 they can’t do that at least not right now so that is a huge huge source of revenue that is hitting the hotel’s hard and who knows how long it will be before those things are back up the pool area is also a place that are restricted at least for now so if a big draw to the hotel was the pool area. Then that hotel suffering from that as well elevators that’s something a lot of our short terminals don’t have if you’re in a big condo association earned a really dense urban area and then maybe you’re in a high rise building that has an elevator but a lot of other short term rentals in the smaller urban properties that I that I teach that I’d recommend acquiring most of us don’t have elevators and that’s just one more spot dead people can enter again the the heebie jeebies and you know. You walk into an elevator and it’s a small tight space little cough comes out you know I’m talking about it’s it’s one of those spaces that it’s gonna be a little awkward going forward in the people might try to stay away from so I was on a call recently our 18 online conference I should say one of my favorite comp is that I do every year it’s with the real estate guys radio some you may have heard me I was on their podcast as 6 months or so ago they’re also at a fabulous resource for real estate information all things real estate real estate guys radio so check them out and I’ll put a link to the podcast interview I did with them in the show notes. But I was on a conference I used to go on this cruise every year the last 5 years with a group of investors what it’s probably my favorite conference because the people that go on it’s usually around 200 people there just from all over there doing all sorts of different types of things really really cool group that I learned a ton from well we did it digitally this year because of coronavirus cruise lines were closed but one of the faculty on there is a co owner of the largest hotel in Billy’s and they developed in 2017 and I got some really interesting insights directly from her as well there Hilton chain and they have certain policies that they have to adhere to and these policies they have to adhere to our almost sort of forcing them to be more like a short term rental like the short terminals that we talk about here every week and one of those is the fact that they actually are doing self check in now and that has come because of Kobe 19 but also if you think about it the hotel would probably prefer this to right I mean they have less overhead with employee expenses so they’re actually having self check in now and they do it through an app and they get a code and this is a Hilton chain we’re talking about the biggest hotel and believes so this is catching on in this is happening with a lot of hotels I read Marriott’s doing something similar for their loyalty members where they don’t need to go to a counter to check in because that limits the physical contact so that’s one of the things you’re doing they’re also not leaving Prentice information in the actual hotel rooms anymore so last week we talked about guidebooks and how I really recommend you have a digital guide book hotels are doing the same thing now also there’s no print inside because. As to the cove in 19 you know that could be contaminated so they’re trying to avoid that whenever possible and the other guidebooks are online their buffets those are no longer thing at least not right now they have a grab and go food Cova nineteenth really hit hotels pretty hard they’re not as nimble as we are having short term rentals having smaller properties we can adapt to these things a lot easier and we also have that great back up plan where we just put a long term tenant now hotels remain at this low occupancy for a long time what’s going to happen while they they go out of business unless they figure out a way to make up for those lost revenue streams from their banquets from there buffet is unless they figure out a way to overcome that then they’re gonna have a tough time you know travel is down but it is coming back in my rentals they were fully booked last weekend if you listen to this in real time so we’ve kind of made it out of the curve but it’s a totally different traveler right they’re not coming from around the world anymore not right now so but we’re still getting a lot of demand from people within the country and so that’s been really really good so we’re seeing a lot more travelers but this is of course based on each in particular travelers risk tolerance what they are comfortable with and most people are not as comfortable as social spaces as they were before so that means they’re likely to choose a smaller short term rental with a private entrance private accommodation over one that has shared areas check in counters elevators I am things that most hotels traditionally have so hotels are. Are not what they used to be now that the sad thing is they can’t go back and easily change that right the new hotels are being built more like short term rentals like traditional Airbnb is about the old hotels they still have all that event space you know they still have those giant pools in those buffet areas and that’s hard to change so all hotels you know or older hotels there probably got a little more of a tough time than than we do with our short term rentals going forward they’re just building them differently and we will continue to see what we talk about here smaller short term rentals and hotels merging their they’re merging together and becoming more and more alike kopen 19 has really expedited that and it will continue the the way people feel today is is not gonna go away any time soon I feel fortunate to be in the short term rental space for smaller short terminals are smaller properties the same properties I advise everyone to acquire if you haven’t yet get my free report on rest methods.com where I talk about that what makes the best property why it’s the best property none of that has changed post code 19 these are still the same properties that I was recommending before they’re still the same ones that I’m acquiring I’m actually putting a new listing hopefully it’s up in a couple weeks and I’m excited about the small little unit private entrance doesn’t have a pool area doesn’t have an elevator self check in of course so I’m excited to keep expanding I know the demand is there and it’s going to continue to be there as people prefer private spaces and the experience the experience is what they’re getting when they stay in a short term rental so hope you guys are having a wonderful day if you haven’t yet make sure to subscribe to the channel so that we. In keeping notified every Tuesday we come out with a new episode and so until next week just ponder these changes and if you haven’t started investing in short term rentals yet hopefully this excites you a little bit to know that the travel industry is changing hotels are changing and I would say you know they’re probably a little envious of us and how nimble we can be with our smaller short term rental properties so until next week have a wonderful day. Want to get on the fast track to financial freedom through short term rentals what all searching the properties you. You want to make sure that you acquired the right to give you my. Yes there is no charge to you for being one of our subscribers just the rest methods. R. E. S. T..

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