Determining demand for MTR

[Divya Santhanam]

Hi guys,

I’m looking to pivot my LTR property into a medium term rental for traveling professionals. I’m trying to figure out how to determine the demand for MTR’s in my area. Is there a way to advertise on places like Furnished Finder without listing photos of the property? Maybe saying something along the lines of “Furnished photos coming soon”, just to see if there's any interest? We live in an urban area with a hospital and college nearby and I’m trying to figure out if converting our long term rental into an MTR makes sense. Anyone try this approach? Would appreciate your thoughts/feedback on this. Thank you in advance!

[Andres Murillo]

The first movers into the STR space didn't have all the data resources that are available today. They focused on market fundamentals and delivering an excellent product.

The same is true for MTR investors today. There isn't a laundry list of data providers out there today. I think this gives you the perfect opportunity to capitalize in the space. 

It sounds like you have demand drivers nearby. If the hesitation is around investing in all the furniture and decor, then MTRs might not be right for you. Even if you had a long list of comps earning $X per month, you'd have to furnish your space with no guarantee of income in order to compete with them in order to earn your target income.

Whether you're STRing or MTRing, you are now in the hospitality business. This means your guests will value your product more (pay more) - but it's our job as investors to deliver a product that exceeds their expectations.

Consider the LTR funnel here. You need at least 10 applicants for your LTR in order to find 2 fully qualified applicants from which you'll pick one for 12 months. Now consider that the MTR funnel requires you to repeat this process 3-6 times a year, with a smaller pool of initially interested people. VERY possible in your area considering the hospital and university, but your question should be "What do I need to do in order to make sure I'm the MOST in demand MTR?" If you're comfortable with those requirements, take the leap. If not, LTR is a tried and true solution that has generated immense wealth for investors - there is nothing wrong with sticking to that strategy.