Furnished Units in an Apartment Complex

[Ben Leybovich]

Think of it this way:

If stabilized operations presume 5% physical vacancy, then if you could squeeze 2x the income from 5% of the units in the community, you could effectively "erase" the entire 5% vacancy.

This is the second unit we furnished at Canyon 35. This is a studio that typically rents for $750. As a furnished unit we just took a 45-day booking with a payout of almost $2,900. Thus, on a monthly basis, this is about $1,900 of revenue out of a $750 rental.

The other unit we have is clearing about the same.

We will have about $300 in costs associated with each of these units, thus the Net is about $1,500 - $1,600. Basically double, which was the goal.

5% of the units will get this treatment.

[Joseph Cornwell]

@Ben Leybovich

As we have discussed on FB this is a great idea and strategy to implement. However, my main concern would be the added headaches, liability, or management strain to implement 5% of the units as short term rentals. In your experience thus far, have you seen any major time or stress as a result of this rental type? If so, is it worth the pay off for double the income per unit? I would imagine you have employees and systems in place to help reduce these factors but what has the outcome been so far? Great work as usual! 

Joe