Should we or shouldn't we expand to the MTR market?

[David Walton]

Hey all! My company currently manages LTR's throughout the Denver metro area. In the last few months we have received several requests to work in the MTR market and want to vet it out. Looking for some advice on the following:

1. How do fees change when managing LTR's versus MTR's/Corporate Housing? Currently, we use a flat rate model and charge leasing and renewal fees for LTR's but that clearly won't work for a MTR. We thought maybe a straight % base per month without any other fees might be the easiest?

2. I assume we'll have to restructure our lease with the help of our attorney to include furniture damages, notice requirements, etc but if anyone else has anything that was super beneficial to their MTR lease, I'd love to hear it.

3. Does anyone have any standard lists or furniture expectations for owners who want to include furniture? I currently do a liability waiver for any LTR owners that want to leave furniture so that we are removed from dealing with any damaged or replacement furniture needed. I realize that managing furniture is important with furnished units so just seeking standards and expectations that others have implemented.

4. How do others manage utilities? Right now, we are removed from putting any utilities in our name and ask the residents to do it or the owners to manage and we can do all inclusive billing to residents, if needed. I know that with MTR's, we'll probably need to setup WiFi at a minimum, just deciding if that's on us or the owners. 

Appreciate any and all insight!! Trying to really weigh this out and decide if the extra time is worth it. 

David Walton

My Haven