Analyzing the occupancy of a medium-term rental property

[Ayelet Sigan]

My business partner and I are currently exploring investment opportunities in medium-term rental

An important parameter in the analysis of the deal for the purchase of the property is the annual occupancy in the presentation of data by quadrants

 how do I check occupancy of a medium-term rental?

[Bonnie Low]

I appreciate your data-driven approach. I have a background in Operations and love data, but there are factors at play relative to occupancy in this space that are less about the data and more about how you work it and the experience you provide. @James Carlson covered the most common tools that are out there right now and is absolutely right that there is nothing specifically tailored to MTR. Here are the factors that will impact your success the most:

- location. Are you in a saturated market? Beware of markets that have recently restricted STRs because a lot of those operators are pivoting to MTR resulting in a sudden glut in this niche. Just as important, midterm renters want safe neighborhoods. Especially traveling medical professionals.

- configuration. Different guest types (travel nurses, digital nomads, construction workers, insurance placements) are looking for different types of properties. Travel nurses prefer 1/1 and 2/1s as a rule. Insurance placements tend to focus on the larger properties. Rent-by-room can work in some cases but just know that most people want their own bathroom and those who are willing to rent a room in a shared home don't want to pay a premium for it. In my opinion, 3/1s and 4/1s are the worst for MTR no matter what type of guest you're trying to attract.

- decor and amenities. You need to hold your own against the competition at a bare minimum and better yet, stand out. You need good design, professional photos and at least a scroll stopper item or two (something that is very eye appealing to entice the guest to look further at your property).

- You have to work at filling midterm rentals. It's not like STRs where you rely almost entirely on the big OTAs to fill your properties. Whether you're using Furnished Finder, Zillow, apartments.com or are pursuing insurance placements, you have to reach out, follow up and network. This is one of the most overlooked aspect of occupancy. I see hosts every day complaining that they've had their property listed somewhere, are getting no intereest and the few people who do inquire don't follow up. But the follow up is on you or whomever is managing your property for you. 

- Accept pets! People have very strong feelings when it comes to allowing pets but guests in the midterm space more often than not travel with pets. If you don't accept them, you are further limiting your pool of prospective guests and this absolutely will affect your occupancy rate.

Data will be helpful but it will only get you so far. If you can master these things, you are much more likely to be successful.