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 real riches podcast happier here again as always we got another week this week where we’re going to do some data crunching well not on the podcast obviously but we’re going to talk about where you can go to do some data crunching to figure out if your property makes sense as short term rental it’s super important to note to have a great idea but before you purchase a property whether or not it’s gonna return well if it’s gonna be worth your money or if you maybe should look in a different market so the beautiful thing today is in this industry is that we have so much data and there’s a few companies that have compiled all this data for us and done statistical analysis and run comp substantially for short term rentals but also show us historical data now we’re gonna take it all with a grain of salt right because sometimes we have these crazy black swan events like code for example and not trying to downplay that in any way that it’s been a crazy crazy year I think for all of us but black swan events aside. We can determine if a market is a good potential market based on a lot of different facts right based on how many other properties are in the area how many people live in the area how occupied the properties stay you know hawked by the one bedroom stay versus the 2 bedrooms versus the 3 bedrooms verses the studios we have this data available had her finger tips and not not just here in the US but also worldwide so I’m gonna talk about a few of those tools today ones that I’ve used and I’ll continue to use and that you can use very easily as well if you’re trying to determine if a potential properties gonna make sense as a short term rental so let’s jump right in share DNA.CO and all all will put these links in the in the show notes but I’ve used this one many times before and they have great data they probably been around the longest I would say specifically doing statistical data analysis on short term rental properties it’s very simple easy to use. Basically head to their website plug in a zip code and you can pull up to different neighborhoods and get the data on it the cover as far as I know all the U. S. maybe outside of it too but their DNA and I’ve got a link in the show notes in actually it’s an affiliate link so you will save 30 percent I believe off any reports that you pull and other reports aren’t expensive I mean when you picture the price of property you’re buying versus a $15 report I mean it’s it’s no brainer right and they have great data and what they do is they break it down pretty easy for you with just a rating like we got in grade school like a plus or D. or email and market I went into a new market for me last year was Oklahoma City I think it was listed as an a minus now again this is an overall market picture right we know that these properties well the property itself but also the neighborhoods can change street by street so really comes down to the property but we want to start in a market that’s got good numbers to start out with so this is a great first place to go if you’re looking to a new market to check out potential occupancy potential average daily rates what you could be charging based on the size of your property also seasonality that changes in every market it’s a little different so you want to be aware of that. Regulations we know those are really really important because they can essentially shut you down so. Bases that already have a system in place and rules were maybe can get a permit those are best because you know what you’re getting into I think states in general that are more landlord friendly or countries that are more landlord friendly are gonna be in general more lax on regulations verses states that are less landlord friendly so regulations is a Big Bang and that again is neighborhood by neighborhood but this is a good starting place of you know whole cities pretty open to it then the chances of any given neighborhood being open to it are going to be a little better so seasonality regulations occupancies average rates and then you can go from there and figure out what the costs of these places are right so that’s a great tool air DNA another one if you wore listening and in Europe is called transparent actually met these guys at a conference in Israel couple years ago it’s great cool guys but they’re they’re doing a different market so they’ve got better data in Europe but they’ve also got some other tools and pricing tools in there she can check them out if you are in Europe and then another one for here in the U. S. is mash visor and this was kind of cool because it it pulls up long term rents too so you can compare them side by side what’s the potential short term rate versus a long term rental rate. Where intermission thank you so much for listen in the podcast it’s been fun for me and I look forward to getting up so it’s out if you have a specific topic that you’d like us to talk about send us a comment and let us know you can send it to contact at rest methods.com and if you haven’t already subscribed and given us a review that would be greatly appreciated too and lastly if you know someone that you think would find benefit in this as well send it on over to help us keep growing and help us to get amazing content back to you without further ado let’s jump back in. Now these tools do a great job but of course we want to go further than this and there’s 2 other things that we can do to really help make sure the data is accurate or to get a better understanding of it I should say so another way is to go directly to the listing sites where we plan on putting our properties so Airbnb for example let’s say you found a neighborhood where you found a potential property looks great. You can reassure yourself a little bit by going into that neighborhood look for existing properties on Airbnb and see what they’re running for then you can also open their calendar and you can check all those great blacked out dates to get a good idea of how booked up this property is now. Things have changed since Colbert right our our average time before someone makes reservations got much much shorter than it used to be instant booking is is super super common that’s what most people use and they’re booking with far less time in advance now so looking out ahead as the calendar for property might not give you that good of an idea of a potential occupancy but you can look at their reviews and how old do the reviews help well let’s say this property has 300 reviews and you can also see when they when they started so that I can give you a good idea of how booked it’s staying right based on the reviews so that’s another way you can do that from home where VR BO or other listing sites as well pull up potential properties you’re gonna want to do this anyways just so you can figure out what kind of competitions in the area Iridian is pretty cool because it’ll pull up a map of the area you’re looking and and you can actually open list scenes from that map so you can open Airbnb listing I think you can even open like homeaway listings on there so you don’t have to actually go search form they can show you the best performing ones and the and the worst performing ones so that is another way so we’ve got these statistical tools we’ve got access to going right directly to these listings on the listing site to check the reviews and check their calendar but then a third way and this is like a must if you’re going to be investing in a new city you’re not familiar with it go there and stay in some of the rentals now I I’ve done this in different I you know I stay in your room bees all over the world it’s like my preferred way of of traveling that’s how I got into it I still like hotels too but you know I talked to these hoes a lot of times I going in and you find out maybe they’re managing more. Full properties and they will they’ll open up to you be be surprised you know I talk with any host that that I know that’s in my area I I don’t see it as competition really I think there’s plenty of demand and the more we share together the better our listings will be and it’s just I think better for everyone that way but that’s a good way to do it too so you can talk with an existing house and this is a new market may be that host is open to managing your property if that’s not something you want to do they could become a co host so talking to locals that already have properties there that’s gonna be a great way to get good insights in a new market as well now the old swim back up plan for buying a property is just making sure that it works as a long term rental right I’ve he’s a this and every other episode but long term rentals as were used to them have been around for like forever right short term rentals are also been around for a long long time but it’s changing a lot quicker than than a steady rental market so I always prefer to find a property that makes sense in the long term tenant first then switch it over as it to short term rentals and make those higher returns but I think that’s a great back up plan gives you peace of mind. And will help you stay a little more a secure with your portfolio I guess and gives you more options for backup strategies those are 3 easy ways to to get really good insight into a new market check out the the tools the online tools check out the list scenes on the OTA’s on the online travel agencies like Airbnb and homeaway and then talk to some local hosts between those 3 you can get a pretty darn good idea of a new market so until next time. They 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 fire 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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