Our or your occupancies doing this year and 2023. I know mine are down slightly. Not all properties though, as we know, all properties are different. All markets are different when it comes to real estate, but in general, the national average is down a little bit. So, we need to be doing everything we can to boost our occupancies. I have one other place; you might want to consider listing your property, stay tuned. Let’s jump right into it.

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 your portfolio. I’m your host Tim Hubbard.

Welcome back to the short-term rental riches podcast. I hope your occupancy levels are staying at a good level. At least a level that’s allowing you to cash flow, right? And hopefully cash flow, much more than you would be able to with a traditional long-term rental investment. That’s why I got started in short-term rentals and that’s why I’m still investing in short-term rentals but the economy has changed Change, right?

The last couple years with covid really changed supply and demand and they’re not really reliable numbers for us to look at if we’re going back trying to forecast a potential new investment, we really shouldn’t be looking at 2020 and 2021 because those were just wild years, right? I remember, I got stuck out of country where I was living. I couldn’t even really go back. The airline closed down and that happened a lot, right? We saw a huge ramp up in the supply. And vacation type rental short-term rentals. We saw a huge decrease in the supply of urban in awork type short-term rentals. So, the supply and the demand are always changing. But as we’re getting into more normalized, occupancy levels, and more normalized Paths of travel, and dare, I even say lower, yes, I think they are lower.

As people are getting a little more squeezed right now with inflation. There’s been a lot of big layoffs, unfortunately, with a lot of Companies. So, things are a little tough for a lot of people out there and that is affecting occupancy levels. So, we need to make sure that we’re doing everything we can to boost our occupancy levels. And one of the ways we can do that is by being on as many platforms as possible.

When I talk about platforms, I’m talking about not just Airbnb but having our own booking website, by being on VRBO and home away and booking.com, there’s lots of other sites out there. We want to be on as many as possible but every time we go on one of those, it creates a new set of challenges. They all have different procedures, different policies, and those are things we need to consider. I want to talk about one today.

That’s really completely out of the realm of short-term rental. Actually, this is a listing site where your guests are not actually going to even sleep at your property. I’m talking about pure space this week. I don’t know if you’ve heard about it before, but essentially, this is for people that want to list their property. Short-term rentals are perfect for this. An hourly basis. Yeah, not on a nightly basis. So, there’s a lot of opportunities with this. There’s also some challenges and we’re going to cover all of those today. First of all, I just want to start off you. Give you a little more detail about what it actually is.

It is a website a listing site set up very much like Airbnb to allow us to advertise and to list our properties not by the night, but by the hour. And so, as we know, lots of people travel to short-term rentals for lots of reasons, I happen to think. Think that the more reason someone would want to stay your short-term rental, the less risky of an investment it is right, the more demands going at it and there’s a lot of reasons for people to want to use your short-term rental, but maybe they don’t need to stay the whole night.

What are some of those reasons? Well, I know we’ve had lots of people do but photography shoots and our properties, of course they were running the whole night. I am not, in fact, on pure space yet, but I might consider it for a few properties. It’s not going to for every property but this is one way we can boost our occupancy. You could even make more money charging per hour, a few hours then you could for a whole night and you have a little less expensive. So, what are the reasons? Some people might want to book your property just fora few hours.

Well again photography events parties, any sort of work-related thing where people aren’t staying overnight film Crews. There’s lots of reasons and I know a lot of you out there. Listening have amazing. Rentals ones, where people would love to gather family reunions, for example, where they might want to spend just the day, but everyone’s not going to need to stay the night there. So, I suggest that you look into this, if you think you have a property that would attract guess just for a few hours, I think you might be surprised.  There are a lot of reasons out there for someone want to say your property. Just during the day,

“We covered a lot of topics on this podcast and a quick action will bite size format. So, you have the tools to acquire and improve your short-term rentals on your own. But if you want to go deeper, I have a special invite for you. Join us once a month that are rested, investor Clubhouse, where we go in-depth on an individual topic, everything from analyzing properties to improving operations and our bottom line, we cover it all the clubhouse members and myself are sharing best practices to earn the most revenue with the least amount of headache and I would love to have you there as well. That’s restmethods.com forward slash Rich. Our lives are shaped by those. We spend the most time with. So, if you want to take your STR to the next level. Come join us. I hope to see you on the inside.”

So pure space again, is going to allow us to list our properties by the hour. Now, they’ve got everything set up for us, so we don’t have to worry about the contractual agreements. We don’t have to worry about collecting their payment. They’re going to do all that. For us, they do charge a 15% fee, but they’re collecting our payments for us and we get paid before or that person enters our properties, we can send them our check and instructions, whatever it happens to be very similar to what we would with a short-term rental gas. Although they don’t have the right to stay there overnight. I know you might be thinking Tim, this is crazy, I don’t want to host parties or renting by the hour.

Sounds a little fishy. I’ve heard of hotels and things doing this. Now, we’re not going down that path. We can vet our guests just like we can with our Short-term guests that stay overnight. So, we get to pick and choose by really think you should consider this. And I know you might be concerned about the protection side of that. We always are with our properties. So, they have a million-dollar liability policy.

In case there are damages. They also have a review system so you can see people that have used this before if you’ve been listening to podcast for a while, you know that I do live events occasionally and I’m planning on doing another one this year, maybe in a different location. I’ve done them all. The past four years in Memphis. But I’m considering using this look for new event space. I think there’s some cool ones out there, so check it out if you haven’t already. It’s called peer space.com. And I want to give you just a few more. The opportunity benefits here with pure space one, is that a lot of times when people want to rent a space for just a few hours a work event, for example, it’s during the week.

So, if you’re one of those properties that stain booked on the weekends, but you’re really slow during the week. Well, this might be a good opportunity for you to collect a little More Revenue. You might also have a property that just got hit with some strict regulations. I have a friend that has a beautiful wedding venue and had multiple short-term rental units on that property. Unfortunately, the city came around said you know what, you can’t rent these as short-term rentals anymore but it’s still the perfect place for weddings and so this could be a very good option. They can still do the wedding, serve it as long as no one actually stays the night there. Well then you don’t have an issue with transient occupancy.

See, no one’s staying the night there, make sure you check your local jurisdiction. That there’s no commercial type regulations in place. But this is another way that you might be able to get around some short term, rental regulations, a couple other benefits. If you are thinking about renting out by the hour, or at least checking it out, you’re going to have a little less expense or you should have a little less expense. I would say, because someone’s not using your property for the whole day. You’re cleaning. Expense people aren’t sleeping. And in your beds anymore. So, you don’t have to have such a high cleaning expense with Linens and things like that. Again, it depends on the type of space, you have set up. If you got a space where people are going to throw a rager, well, it might be a little dirtier and I wouldn’t suggest that.

So, if this is at all, peaking your interest, I highly suggest you really think through, who your guests Avatar would be, is that someone that wants to use your space for a couple hours, for a work meeting for a photoshoot for a wedding or whatever it happens to be? You want to make sure that, you know, To your track in first. And that is the same for any real estate investment. For example, someone’s not going to build a Class A apartment building and put it in a d class neighborhood. They’re not going to attract people there, right? So, this is really important when it comes to any real estate investment.

We need to know who we are attracting. Okay, so a bit on the opportunities. It’s worth checking out a few negatives. Well, it’s a different listing site, right. Which means we have a whole bunch of different listing policies. Yes, and we got a few things to figure out if this is something we want to do, it’s very likely not going to integrate with your property management, software, if you are using one already, which means that if you want to take a reservation, you’re probably going to have to do it manually.

Remember that they’re going to take the payment for you, so that’ll make that part easier. But you want to make sure that you block your calendar and you don’t get a double booking and it is just a new platform, right? Or newer platform. And know, they have been around for a while and they’ve had millions of We use it. So, it’s not that brand-new, but take a look at it. If you’re in a place that just got regulated, but you’ve got a beautiful property. Well, maybe you can get around those regulations by running out, by the hour.

Remember, you’re probably going to have a few less expenses and you might actually be able to charge more by the hour for just a few hours and you could for the whole day. So, as we continue into this economy, that’s a little slower than before and occupancy levels, are dropping a little bit. We need to do everything we can. Can to make sure that we are exposing our properties. We’re getting as much visibility as possible, so our occupancy stays high and our returns say hi as well. Until next time, I hope you have a fabulous week and I’ll talk to you soon.

Want to get on the fast track to Financial Freedom through short-term rentals what all starts with the properties you acquire. But you want to make sure that you acquired the right properties, I want to give you my e-book. That will show you how to do just that. There is no charge. It’s My gift to you for being one of our subscribers. Just go to restmethods.com. That’s REST methods.com.

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