MTR Supply and Demand

[Jamie Banks]

Hi All,

I spend a lot of time researching, underwriting, talking about, and coaching other investors on medium term rentals and I wanted to share a few insights. 

1. Be careful buying MTRs in markets that have recently stopped allowing short term rentals because the STR operators will generally pivot by switching to medium term rentals which causes a lot of supply to flood to the market. However, in some markets this supply isn't being supplemented with growing demand which is causing some MTR units to sit vacant longer and property managers and landlords will have to lower their prices to increase their occupancy.

2. In some markets, traveling nurses are seeing their contracts cut short or they aren't getting the same pay as they were in prior years. With that being said, throwing a property on Furnished Finder and crossing your fingers won't work for a lot of operators. I suggest reaching out to agencies, corporations, housing specialist, etc. directly to get bookings. Even if they say no at first follow up every month or so to let know that you're a housing provider in X city. Another tip I have is reaching out to local churches and community centers. Let them know, again, about your housing options in case they know of anyone in need of temporary housing. I always create digital marketing pieces to share with others that includes a link to my website to learn more about my property offerings. 

3. Seasonality plays a huge role in MTR demand in most markets. For instance, I have two properties in Philadelphia. When it's cold I see more traveling professionals but as the summer months roll in I see more digital nomads who are in the area to enjoy the city and students in town for internships. Make sure that your unit is equipped to handle more than just traveling medical professionals.