Welcome to short-term rental riches will discuss investing in real estate but with a specific focus on short-term rentals quick actionable items to acquire manage and scale in your portfolio I’m your host Tim Hubbard.

Welcome back to the short-term rental riches podcast for here this week talking about some of my favorite type of guest and those are the ones that stay for a really long time but they pay a nightly rate now not all long term gas are created equally so I want to talk this week about the pros and the cons I’m sure there are a few things here you haven’t considered when it comes to host in long term gas so I want to break those down let’s start with the pros well the pros to having long term guest is that we can have a higher occupancy but that doesn’t mean we’re necessarily make more money that is a whole episode on itself how to calculate to know if we should be offering long term stays or if we should be offering long term discounts so I don’t want to get into that one on this episode I just want to talk about the pros and cons but just know if your occupancy goes up if you have 100 percent occupancy doesn’t necessarily mean you’re making more money so but it definitely is nice to have that high occupancy and we can get that from a whole different range of guest a very common one is to have travelling nurses in my experience have been excellent excellent guest they usually stay for an average of 3 months they usually travel by themselves their companies usually pay for their rent so they’re very easy guest to have and if their pain our nightly rate then we’re going to be making a lot more to but there’s some other types of guest that you might find that staying the longer as well those could be people traveling for work corporate travel maybe someone displaced in their home and they happen to live in the city maybe they had a fire at their home or the rebuilding or they’re moving to a new city and they’re doing new construction so there’s quite. A few different types of guest that are gonna want to stay at your property long term and this also happens to be Airbnb is fastest growing segment our longer term stays so along with having potentially higher occupancy we can also have lower expenses right so this is pro number 2 we don’t have to pay for as many housekeeping turns if we only have one a month for example so if your average stay right now is 3 or 4 nights and you’re doing all those housekeeping turns but you can get someone in for a month well then obviously your housekeeping expenses going to be lower but so is just the management overall you’re going to have less messages very likely you’re going to have less operations it’s just going to cost a little less to operate and it’s going to be a lot easier to do yourself if you’re looking to managing your properties yourself versus having a professional property manager number 3 pro number 3 it’s going to boost your search rankings if you have a property this goes for Airbnb but very likely all of the online travel agencies that advertise some sort of long term stay have you ever property that’s available let’s say. For a minimum of 2 nights and you cap it add a weeklong reservation verses that same property there’s a minimum 2 nights but has no Capper has a cap of 30 days where being he’s going to like that property a little better because it’s going to be open to more potential guest they’re going to have a better probability to book it because it’s gonna meet more people’s potential requirements so you do get a little boost on Airbnb search rankings number 4 pro number 4 no transient occupancy tax now check with your local jurisdiction but it’s very possible that if you have a guest staying with you for 30 days or more that’s most cities definition of a short term rental 30 days or less is usually considered short term rental so if you’re over that then a lot of times you don’t have to pay transient occupancy tax and what is that taxes 12 percent or more you know it could be less it could be more but make sure you factor that into your equation we’ll get into that more in another episode character in that but that’s a big thing you might not have to pay that tax number 5 number 5 you very likely don’t have to deal with regulations as well in most cities short term rental again is considered 30 days or less if you go over that there are no longer a short term gas and you can rent it as a short term rental I would more call this like a mid term stay but you can get around those regulations sometimes to make sure to check with your city now number 6 is kind of like a bonus one but a lot of times when you have longer term stays those are the type of gas that are gonna come back to your property if they’re working on some sort of corporate project that takes awhile maybe a couple years and they’ve already stayed at your property and they had a good experience well they’re gonna come back to it because it feels like home and that’s what we want and I have a lot of guests to do this so it’s a really really good thing to be able to have longer term stays in our properties but not always right so. Let’s get into the cons quick intermission I’m super excited to announce the dates for next live event live and in person in Memphis Tennessee August 19 to 20 first this is our fourth live event and they just keep getting better and better and there’s not a ton a room so I hope you can make it will go through my whole process from start to finish what I look for properties how I find them how I set them up how I manage them how I manage them remotely with my teams and how we can scale the whole operations we take it from start to finish perhaps one of the most exciting parts we’re gonna get on tour bus and we’re going to visit some of my actual properties in action in the operation really hope you can join us you can check out tickets at rest methods.com and again it’s gonna be a live in person I’ll be flying back from Colombia August 19 through the 20 first I hope to see you there and there are several cons I mentioned that this but just because you’re occupancies higher because you have a long term state does not mean that your revenue is going to be higher in fact when our properties in my portfolio is doing well we don’t offer a long term discounts because even though I might be at a lower occupancy even down to like 65 percent I can still be making more money if that property was booked up at 100 percent with a long term discount so you really got to factor that in but you could potentially have lower revenue if you’re offering longer term stays with the discount tenant laws soul you might be able to get around the short term rental regulations if you have those in your city by offering to stay over 30 days but then you enter into the land or territory and your tenants day shift from being gas in most jurisdictions to being tenants and that means they have a legal right to be there at that property and that means you have a whole new set of lots so you have to make sure you check that out and this is different. Depending on every state you’re in some states are much less. Landlord friendly than others so one thing we do when we get a long term stay is we send out automatically the a program called sign now I’ve talked about that prior so to go back and check that out if you haven’t already this goes out automatically to any of our guests that have stays 30 days or more it’s a lease the lease for the property but it’s easy for them to digitally sign and it just protects us a little more so that’s a really big one when someone shifts from being aghast to a tenant you got to make sure that you’re aware of that and your local laws number 3 on the con side wear and tear now you might be saying to him that’s sounds off because if I have more gas going into my property and leaving my property well then they’re probably gonna be mass and a lot more it’s going to be getting more use versus someone just staying there for a month but not necessarily if you’ve been in the real say world for a while and if you have long term rentals you know sometimes we get someone staying at our property and for not checking in on the property all the time they could have animals in there did you weren’t allowed to date could just be really dirty or not take care of things and if you don’t find out until 30 days later well then there’s gonna be more wear and tear so you may want to consider putting in your lease if you have people stay more in 30 days that you have a housekeeper come once a week or every 2 weeks so you can kind of check in on the property make sure they’re taking care of it so I know that one kind of sounds weird but that wear and tear builds up I know some of my long terminal sometimes a tenant leaves and they weren’t taking care of it the property like we thought they were and it’s a really big expense versus the the short stays where someone leaves a maybe they scuffle wall needs lower pain or they break a couple wine glasses or something like that so you can potentially have much more wear and tear that you don’t actually know about until you get into that property. Number 4 on the con side if you have your own housekeepers or someone that you’re contracted with and they’re only cleaning your property once a month or every 2 months it’s gonna be pretty hard to keep them motivated right if you’ve got multiple properties in your trying to scale and you’ve got 1 housekeeper that’s handling all these but you only have 15 even 10 cleans a month that is not enough to keep them really motivated to stick with you or to be involved as much in your properties maybe you want them to be so keep that in mind if you’re trying to hire your own housekeepers of course if you work with professional housekeeping company then this 1’s not really gonna apply too much to you number 5 on the con side it’s less reviews if you’ve got a brand new property that you’re trying to get top dollar for we’ve got to have at least a good fair amount of reviews I’d say 3 or 4 and good reviews before people really trust in this property over maybe another 1 and so if you’re renting really long stays you’re probably not going to have very many reviews and you might not get as much visibility for your long term stays as you otherwise thought so those are some pros those are some cons and 1 little extra thing I want to add in here is that we’ve seen in Seoul scammy is that some people might try to book your property for a long term stay 30 days and if you do have that long term discount on there then they’re getting a good nightly rate but then they might try to cancel it during that stay maybe they only stay for a week and your cancellation policy allows for them to cancel after a week with no penalty well then they got your monthly rate but only stayed there for 7 days so if you are offering long term stays you want to make sure to check your cancellation policy to make sure that someone can’t kind of squeak by yeah and I try to take advantage of your rates so those are pros and cons I personally love long. In terms days a lot of my properties are set up to attract long term stays they have great working areas they have super fast internet and they’ve got all the amenities you need for a long term stay so those are the pros and cons there is a whole nother set of things that we need to look at the if we actually want to offer long term stays are actually makes sense for us to offer long term stays and that all comes down to the numbers but it’s something that we can calculate I want to get into it in a future episodes just stay tuned hope you’re enjoying the podcast remember you can check out all our past episodes a lot of our resources and tips at S. T. R. riches.com and until next time I hope you have an amazing wonderful day. John. Want to get on the fast track to financial freedom for short term rentals what all searching the properties you acquire you want to make sure that you acquire the right properties I want to give you my you doctor will show you how to do just that there is no charge to my gift to you for being one of our subscribers just go to restmethods.com that’s R E S T methods.com.

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