STRs for traveling nurses vs pilots vs corporate professionals vs student housing

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STRs for traveling nurses vs pilots vs corporate professionals vs student housing

Memphis, TN · Member since 2021 · 41 posts · 6 votes

I am looking to make make my next move an investment in occupation-based short term rentals. I would like to get some insight on the pros & cons of housing for traveling nurses vs crashpads for airline pilots vs corporate professionals vs student housing. Which have you seen be most lucrative? What issues should I be aware of?

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Bonnie LowPro Member

Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes

You mentioned STRs, but some of these guest types are in the 30+ day stay category like students and travel medical professionals. Likewise, the guest type, their preferred locations and what they're willing to pay are going to be vastly different. Do you already have the location and/or property identified? If so, I'd start by looking at those characteristics and fine tune your strategy based on that. The property that appeals to a corporate professional is NOT going to be the same property that appeals to college students. If you haven't yet identified the property or the location, then I'd start by asking what your goals are and how you plan to manage the property. Are you needing to generate cash flow? If so, how much? How hands on can you be or do you want to be? All of these should help you narrow down your choices. Here are some rule of thumb profiles for these guest types as they compare to one another that might be helpful. I don't have experience with crash pads for pilots so I didn't include that category. It should go without saying that these profiles are not absolute.

Students: longer rental term (9+ months), lower rent, rent-by-room may off set lower rents, more damage, location specific.

Travel medical professionals (nurses, physical therapists, x-ray techs, etc): 13+ week contracts, higher rents than students but still price sensitive particularly in states with low stipends, very little damage, require quiet & safe properties, ideally close to hospitals but longer commutes acceptable in rural areas. I would not put traveling physicians in this category. I'd consider them more like Corporate professionals.

Corporate professionals: length of stay varies, very little damage, higher rents, expect great design and amenities, location can be more flexible.

Hope this helps!

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Andrew PostellPro Member
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
2y
@Kesha Hamilton while there are some services that try to market to certain industries most of us just market to them all. Meaning, using a STR site like VRBO in addition to a STR site like funishfinder.com Just use them all and maximize your income. Don't limit yourself to just one method here. That's what I would recommend.
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Kesha Hamilton
OP
Memphis, TN · Member since 2021 · 41 posts · 6 votes
2y
Quote from @Andrew Postell:

@Kesha Hamilton while there are some services that try to market to certain industries most of us just market to them all. Meaning, using a STR site like VRBO in addition to a STR site like funishfinder.com Just use them all and maximize your income. Don't limit yourself to just one method here. That's what I would recommend.

Thank you!
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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
2y
Hey @Kesha Hamilton, so there are some different markets there. Student housing will be long term, usually 9 months minimum but most leases are a year. You can expect some serious rehab after students exit as they don't usually take great care of the place.

Nurses, PT, OT etc are usually a 90 to 120 day contracts. I will say that the demand for traveling health care professionals has been dwindling so I would check with the local hospitals etc to see if they are still using them before plunking down the hard cashola.

So my personal take on mid term rentals vs short term rentals is either/or but not both. Some folks will do both depending on the area. @January Johnson does this in FL. STRs during the high season and snow birds during the low season.
They end up interfering with each other when booking. You get a 3 month booking during the high season at a lower rate which leaves you out of the STR revenue. Someone needs a 4 month booking but 5 days is booked up so they have to pass.
In the end it is all going to come down to where you are buying and the regs.
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Account Closed
Real Estate Consultant · Franklin, IN · Member since 2012 · 80 posts · 71 votes
2y
Agree with Michael's final point. You probably know this, but know all the regulations, especially the cut off for short vs long term renting (ie longer than like 28 days makes them a long term tenant with all tenant rights) and reduce that risk accordingly.
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Leslie Anne Morris
Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
2y
Your strategy will really depend on what you’re close to. So consider your location wisely. Where I invest it’s all vacation rentals, I’d have to invest 45 minutes away in Knoxville to capture some of the other types of rentals you’ve mentioned and it wouldn’t fit my investing model. Although I will say that I’ve gotten insurance claims / MTR renters in Townsend before.
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Chai Xiong
Investor · Orlando, FL · Member since 2012 · 312 posts · 165 votes
2y
ohhh so many variables, even 2 houses on the same block here around disney world has different income range.. following this thread ;)
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Bonnie LowPro Member
Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
2y
You mentioned STRs, but some of these guest types are in the 30+ day stay category like students and travel medical professionals. Likewise, the guest type, their preferred locations and what they're willing to pay are going to be vastly different. Do you already have the location and/or property identified? If so, I'd start by looking at those characteristics and fine tune your strategy based on that. The property that appeals to a corporate professional is NOT going to be the same property that appeals to college students. If you haven't yet identified the property or the location, then I'd start by asking what your goals are and how you plan to manage the property. Are you needing to generate cash flow? If so, how much? How hands on can you be or do you want to be? All of these should help you narrow down your choices. Here are some rule of thumb profiles for these guest types as they compare to one another that might be helpful. I don't have experience with crash pads for pilots so I didn't include that category. It should go without saying that these profiles are not absolute.
Students: longer rental term (9+ months), lower rent, rent-by-room may off set lower rents, more damage, location specific.
Travel medical professionals (nurses, physical therapists, x-ray techs, etc): 13+ week contracts, higher rents than students but still price sensitive particularly in states with low stipends, very little damage, require quiet & safe properties, ideally close to hospitals but longer commutes acceptable in rural areas. I would not put traveling physicians in this category. I'd consider them more like Corporate professionals.
Corporate professionals: length of stay varies, very little damage, higher rents, expect great design and amenities, location can be more flexible.
Hope this helps!
[email protected]
2 Reply
Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
2y
This depends on the property, the market, and the location within the market. In my opinion the best approach is to be in an area where nightly rentals are legal and then try to appeal to everyone I.E. be in a vacation market but also be close to an urban area/airport/major hospital, etc and list on all platforms available to you.
[email protected]813-563-0877
Vacation Rentals of Florida53 Reviews
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Sam McCormackBusiness Member
Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
2y
Quote from @Kesha Hamilton:

I am looking to make make my next move an investment in occupation-based short term rentals. I would like to get some insight on the pros & cons of housing for traveling nurses vs crashpads for airline pilots vs corporate professionals vs student housing. Which have you seen be most lucrative? What issues should I be aware of?

Not too experienced in MTR/STR, but Greater Cincinnati has good opportunities for both. Many hospitals, 2 big STR locations in Northern Ky (Creation Museum and Ark Encounter), sports teams, big colleges, etc.
[email protected]859-443-4952
Sam McCormack Realtor
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James WilcoxBusiness Member
Real Estate Agent · Bowling Green KY ~ Lexington, KY · Member since 2015 · 1k+ posts · 602 votes
2y
Quote from @Kesha Hamilton:

I am looking to make make my next move an investment in occupation-based short term rentals. I would like to get some insight on the pros & cons of housing for traveling nurses vs crashpads for airline pilots vs corporate professionals vs student housing. Which have you seen be most lucrative? What issues should I be aware of?
This really depends on your own goals and abilities plus the asset class. For these I prefer to see B or A class properties. These are professionals that work long hours and need a good nights rest. This is also the type of accommodations they are looking for.
REI James w/ eXp Realty54 Reviews
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Stephen Sherbin II
Realtor · Orlando, FL · Member since 2023 · 14 posts · 9 votes
2y
Quote from @Kesha Hamilton:

I am looking to make make my next move an investment in occupation-based short term rentals. I would like to get some insight on the pros & cons of housing for traveling nurses vs crashpads for airline pilots vs corporate professionals vs student housing. Which have you seen be most lucrative? What issues should I be aware of?

Hi Kesha, something that as a realtor I've seen spreading through Orlando and in other markets is PadSplit, that may actually be a good option for you if you are looking at these types of properties. It's a rent by the room week-to-week model, PadSplit manages the people staying, and you can make up to 3x the amount you would on LTRs. Let me know if you'd like more info on it, I know one group they won't rent to is student housing, they focus on full-time workers only, and their rent collection rate is 95%, and evictions is closer to 3%, instead of 6%.
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Mindy Nicol
Realtor · St Augustine, FL · Member since 2023 · 111 posts · 87 votes
2y
I agree with many of the posts here. It depends what you're close to. If your properties are near hospitals then traveling nurses makes sense. The quality of the home may differ between what you'd do for students, vs nurses. And for the nurses you would need to furnish. For the latter I'd use Furnished Finder and take a look at what other hosts are doing. Also pop on Zillow rentals and see the quality and price of what is available near the hospitals, colleges etc. If you can find an underserved niche then that would be lucrative. I'd also look at who are the biggest employers. Your strategy may change over time like mine did as the market does change. I am now aiming towards medium term rentals vs STR on one of my rentals for this reason.
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Kesha Hamilton
OP
Memphis, TN · Member since 2021 · 41 posts · 6 votes
2y
This is a lot of excellent information! I am reading all of the comments and digesting it all to see if I have more questions. I appreciate everyone's input!
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