Over the last few years, short term rentals grew rapidly in popularity. There were investors who bought properties with the sole intent of using them for Airbnb and short term stays. Some even leased apartments from other owners, just to list them on Airbnb, a strategy known as Airbnb arbitrage. However, when COVID hit, the party stopped. Many of those investors went bankrupt after being on the hook for rents across an entire portfolio, with no income due to travel restrictions. Tourism and travel have taken a hit and it makes the future of short-term rentals a bit murky. To get some clarity, we interviewed Tim Hubbard and asked him, are short term rentals still a good investment?
Tim is the founder of Midtown Stays and has successfully accommodated over 15,000 guests. He also helps others invest in short term rentals through his Rest Methods platform. In today’s show, we discuss the changing face of short-term rentals and what he has seen in his business, along with the industry. He shares where the strategy still makes sense and covers market research tips. In addition, he highlights how he runs his business remotely for anyone looking to emulate some of the success he has seen.
Listen Here:
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Investing in Short Term Rentals Post-COVID
Converting his rentals into short term rentals, and working remotely from Columbia for the last few years
Why some properties can earn a much higher return as a short-term rental
How short-term rentals stack up to traditional long-term rentals
What criteria to look for when investing in short-term rentals
Cities that are landlord-friendly tend to be more friendly towards short-term rental regulations too.
Who is the typical short-term rental resident?
What criteria to look for in a market for a successful short-term rental investment
Tools to use to find good markets: Airdna.co
How COVID has impacted the short-term rental business
I lowered my rates when COVID hit, and my rentals in Sacramento were continuously booked.
Why investors using short-term rental lease arbitrage are out of business
Why short term rentals in dense areas are less likely to be successful
Dense urban areas are more regulated due to low housing supply.
How Tim keeps his properties booked during COVID
The future of short-term rentals
People are looking for more of an experience, which short-term rentals provide.
How Tim runs his business virtually from Columbia
How to vet vendors for housekeeping and maintenance
Helping investors start in short-term rental investing through Rest Methods
Bullseye Round:
Apparent Failure: Not budgeting enough for renovations
Digital Resource:
Notion.so (Organization tool)
Most Recommended Book:
The Slight Edge
Wish I Knew When I Was Starting Out:
Returns are higher on small studio units and they are more easily manageable
Daily Habit:
Leaving my phone on airplane mode first thing in the morning for an hour or so, so I can focus.
Curious About:
The economy in the U.S.
Best Place to Grab a Bite in Medellin, Columbia
Colossal
Contact Tim:
Short Term Rental Riches Podcast
Rest Methods (Short Term Rental Coaching)
