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 podcasts another week another episode and another topic one that’s affecting us a lot in is going to affect us for years to come at least in our lifetime and that is that the world is shifting to remote work it has been slowly but with the corona virus we got sort of forced into that one and so we’re gonna discuss what that means for short term rentals what I think potentially might happen and just kind of the changes and what you want to be aware of. But also how how this could be really good just for all of us in general so let’s talk about going remote and the fact that based on a recent Forbes article 62 percent of employed Americans and the US are working from home that is a huge huge amount and remember that’s just the United States but the whole world made a shift to work in remote there’s been this old kinda you know stigma I guess over why this hasn’t happened before why hasn’t happened at a at a quicker pace and it’s because a lot of older companies just kind of think that maybe people won’t be as productive working from home but we’re clearly finding that that is not the case the people are happier working from home it gives them more freedom more control over your life really if you are not tied down to a location I know that has been the case for me for sure Tim Ferriss kinda helped a lot with all of this you know in his book the 4 hour work week it was a huge influence for me but it really let a lot of us know that we can do a lot of our work remotely work that we thought we could only do in an office before or that our employers thought we could only do an office before when I was working as a commercial real estate broker I remember my boss telling me you know this is years years ago I remember talking to him and this and saying Hey I love this job I love this work I love running the numbers on investments but I think it would be way more productive if I if I could do this from home. And I had already been accustomed to working from home in a sales job you know as an independent contractor so I was used to kind of running my own schedule and have been going to that office every day not to mention the commute time which soaks up a lot of our economies time and we don’t usually use it productive ways which could be you know listen audio books and podcasts a lot of that time Hannah gets wasted and it’s not the most pleasant time you know just just sitting in traffic if that’s the case inner city but I remember telling him working from home I feel I could do all this with less distraction because reality was in in the office there there was a lot of distractions and not productive distractions they were you know jokes being passed around and emails and talk at the coffee station things like that I remember him saying that. I had to work there in the office because a lot of learning came through osmosis those were used oz mosis. And while part of that could be true just being near someone unable to ask some more questions that you might not otherwise ask them if you are working remotely I don’t think the productive any side of it has anything to do with that with oz mosis it’s happening now more people are working from home than ever before it’s gonna stay that way I mean do you think a lot of these companies that have moved their employees out of the office or not allowed them to come to the office I should say because a co in 19 and when they realize that they’re being just as productive or or maybe even more and with less expense because they can cut some of those office expenses will talk about what this means for commercial real estate in a second here but the reality is a lot of people are going to continue to work from home maybe not 100 percent but it’s going to be a lot more I remember after I realized that a job I was doing. Could be done completely remotely the freedom and the excitement that I god I was down in Argentina and I was selling software which before then I’d done all in person. Almost 100 percent almost exclusively and I remember doing a demo I was calling this was back in the day when we didn’t have nearly the tools that we have now long story short did a demo successful the client agreed to sign on and we got him set up and I did the training remotely it did the whole thing remotely and just realizing old my gosh. I can do this from over one hand there’s a lot of benefits to being able to work remotely and and so not just the freedom but let’s say you work outside of the country for example you can take advantages of big changes and and currency or in the the difference between your home currency and wherever you are a lot of you know why they live in Columbia. Our dollar is at an all time high against the Colombian peso I’m actually still down here in Brazil and same thing our dollar is is super super high compared to their currency which means that you can find remote work at a fraction of the cost but still be paying a really good wage we’ll talk about hiring remote workers and finding them and how you could use remote help and assistance remote work in your short term rental business we’ll talk about that next week but for now I just want to sum up I mean what this remote work is doing to the short term rental industry well for one I think we’re going to have much longer reservations are just an average length of stay that’s longer or a staycation if you’ve heard that before because of someone that can go travel somewhere and not have to make at home on Monday to be in the office well then they’re probably likely to stay longer if they wanted right. So I think we’ll see longer staycations gosh this could actually ultimately change our idea of what a normal lease length this you know well normally we we rent a property in a long term basis for a year but you know what if this becomes 9 months or 6 months as people continue to be more and more mobile so just want to throw that out there that’s an idea I have I think that will definitely happen at least on a small scale so what happens when we have longer term reservations well we have less turnover less housekeeping expense so it can be easier for us on the management side and that’s exciting as well now you will see that your longer term reservations are probably gonna be booked at a lower rate and that’s pretty clear you know a lot of times people offer a week weekly discount or a monthly discount just to secure that guests in a make sure you have your unit occupied Airbnb has been pushing this big time with everything going on with Copa 19 I mean it it pops up in their headlines they have their own discounts and things that you can plug in there for a longer term stays that they’ve had for a long time I again don’t recommend using those because I recommend using a dynamic pricing tool and die will gesture prices automatically now if you want to offer a rate over a month. That’s kind of a different story and I would I would offer it a discount there but as occupancy picks up which it already is for the moment and this could this could retract again we don’t know but in the 3 cities were operate things are picking up already again and we’re starting to get more short term rentals and self that is exciting but regardless I I still think that we’re gonna coming out of this we’re just gonna have a slightly longer average stay. And so we’re gonna probably have a little less wear and tear on our properties which is nice less people coming in now means less suitcases rub in the walls and and scuffing up corners of walls and paint and things like that so what does this mean for commercial real estate Walters less people going offices unless people working outside of their home then it’s gonna hit office space hard it doesn’t mean that we won’t find another use for that space. But in the short term it’s gonna get hit hard now I you know I know in the US we’ve been jacked it thon of money trillions of dollars into the economy to help unemployment to help these businesses but the reality is a lot of these businesses have already gone under and a lot of them will go under it’s sad my heart goes out to all of them but that’s just the reality being out of business you know especially restaurants and bars and places that have been restricted completely you know for months at a time a lot of them just aren’t going to make it back so there’s gonna be some empty space but it’s gonna take a while that whole process takes a while when those rents aren’t being paid anymore for commercial spaces for offices does they’re gonna fact those property owners at some point the banks aren’t going to get the mortgage payments and so you know maybe that takes 12 months maybe that’s a little longer but there is gonna be a downturn in commercial real estate or it’s gonna get hit hard it has to at least and it was already coming a little bit with retail I mean think of everything that we buy online now solve that commercial retail space has been seen a downtrend for awhile while warehouse in places where we’re storing all the goods were buying online has been going up so things are changing they’re always gonna be changing the thing I like about multi family housing and residential housing is that people will always need a place to live whether they’re renting a place for a year or 2 years or they’re working remotely now and they’re traveling around in with their new found freedom and running places for 3 months or 6 months or 9 months or however long in our short term rentals so time will tell how that plays out but those are kind of my. My my little predictions there with more people working from home I think a commercial real say clearly is going to get hit we’re already seeing the longer reservations which could mean a little less wear and tear a little less operating expense for rentals and a little higher occupancy at a lower nightly rate and then with everyone working remote or with more and more people working remote secretes more opportunities for you to get assistance with your short term rentals to help you manage so it can be as passive as possible for you you’re gonna have more options we’ll talk about that next week I can find someone manage them effectively in the tools you can use and I just I have to say at the end if if you’re in this position where you’re working remotely now or you think you may be able to maybe your position where you’re at was deems necessary and so things and really change for you but that doesn’t mean they can’t if you are interested in working remote I think now’s a good time to test that to bring it up with your employer and just do a little test run and if you haven’t read Tim Ferriss is 4 hour work week at highly suggests he gives you a basis strategy on how you can do that and for me being able to work remotely and I I I I don’t think I would trade it for anything at this point and I’m so used to it now you know it’s been years and years. And actually if you want to read more about my story if it interests you at all and how real estate kinda set me free financially free and allow me to work remotely I was co authoring a book last year called resilience turning your setback into a comeback it was an Amazon best seller and you guys happy to give you a free copy if you want to just email resilience at rest methods.com also put it in the show notes where you can go and be happy to send you a copy of that just my little story and as always if you guys have any comments or questions please send us an email or suggestions for future podcasts you can send that to info at rest methods.com site from that I hope you have a wonderful day talk to you next time. I 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 go to rest methods. R. E. S. T..

RELATED PODCAST EPISODES

• Episode 62: Professional Tax Advice From My CPA – Part 2
• Episode 61: Pro Tax Advice directly from my CPA (part one)
• Episode 42: What You Need to Know About Working With Contractors
• Episode 38: Is a Short Term Rental the Best Use for Your Real Estate‪?‬‪‬
• Episode 27: Building Your Remote Team (Essential Steps‪)