Who Else is Doing Mid-Term Rentals in Tucson AZ?

[Kyle Swengel]

Hey BP!

Just seeing who else is doing mid term rentals in Tucson AZ! Myself and a few other investors I know have a handful here but I want to keep getting to know others doing the same thing and share notes about what’s working and not working. If you are doing mid term rentals or you’re doing a similar strategy in Tucson or just want to learn about it please reach out! Thanks!

Kyle Swengel

[Brooklyn McCarty]

Not in that market, but I’m sure there are market specific fb groups out there. 

[Nathan Gesner]

Quote from @Kyle Swengel:

Go to NETWORK at the top of your screen and you can search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area.

Don't fool yourself and get into trouble. A mid-term rental is not a real thing. Anything rented longer than 30 days is a long-term rental, including furnished units rented for less than a year. People have done this forever and creating a new name doesn't change anything. The laws for long-term rentals still applies. You should use the same lease agreement. Advertising can be done on a STR platform, but will probably get more traction on websites where people are more likely to look for more than a nightly/weekly rental. Furnishedfinder is a good resource, but I don't even see them using the "mid-term" phrase.

[Cameron Goedde]

Hey Kyle - We are...  Or are about to be.  Closing on a place at the end of Jan and it has snow birds there already through March.  We plan to restyle and market towards that medium term market.  I'd love to hear about your experience so far.  This will be our first and we're excited to learn!

[Jason Sousa]

I'm in Michigan but found this thread. I have the opportunity to co-host for a couple investor friends and I'm wondering what to charge them for MTR/LTR management. In the first opportunity, it's a condo that is furnished by the owner. For LTR I know I can charge them 1 month's rent to find and place renters. We'd both like to do MTR though. Based on research in the area, it looks like we can get $1,750 for LTR, and $2,500 if furnished. For a furnished MTR I believe we're at roughly $3,000. Assuming furnished MTR, what should I be charging for placement and management? What if I furnish it or we split the cost of furnishings? Any help or guidance is appreciated. 

[Drew Sygit]

@Jason Sousa go here and look at calendar for monthly STR meeting: www.REIAofOakland.com.

There are also several local MeetUps.

[Jason Sousa]

Great, thanks Drew!

[Kyle Swengel]

Hey @Jason Sousa,

I am not sure what you should charge them because I self manage. Normal unfurnished long term property management is normally 8-12% but MTR is a lot more involved than that. I would say it would have to be above 15% but closer to 20% for me to consider managing for someone else. What I have seen in my rentals is that I get 2x the rent for a MTR that I would get from a LTR, that’s in Tucson AZ anyway. But you also have to subtract utilities, turn costs, starting items (kitchen and cleaning items you give them), and furnishing upkeep/maintenance. So you don’t get to pocked all of the extra.

The other thing to keep in mind is that you will have to keep a supply closer or room with your extra bedding and materials and a checklist for you cleaning person to run when they turn the unit, as well as a smooth process to screen, lease sign, and collect payment from the guest.

I think that MTRs are better than STRs personally but MTRs aren’t easy either. If I was just going to have one or two MTRs I probably wouldn’t do it but with several in the same house I think it makes sense.

Hope that helped!

[Aditya Kohli]

Hey Kyle, would love to connect with you! I do a mix of STR and MTR in Tucson ( STR for peak season around gem shows ) and MTR during the other months

[Kyle Swengel]

Quote from @Aditya Kohli:

Hey Kyle, would love to connect with you! I do a mix of STR and MTR in Tucson ( STR for peak season around gem shows ) and MTR during the other months

Awesome! Shoot me a dm and let’s get together and compare notes! 

[Hamidou Keita]

Quote from @Kyle Swengel:

Quote from @Aditya Kohli:

Hey Kyle, would love to connect with you! I do a mix of STR and MTR in Tucson ( STR for peak season around gem shows ) and MTR during the other months

Awesome! Shoot me a dm and let’s get together and compare notes! 

 Hi Kyle, 

Thanks for sharing your experience doing MTR in Tucson. I am currently closing on a duplex in Tucson that I want to use one unit for MTR. I love to connect with you to share ideas.

Best

Hamidou

[Kyle Swengel]

Sounds great. Send me a DM and we can chat!