All Forum Posts by: Thomas Sedita

Agreed Mike. STRs around the country are doing very well I and believe this trend will continue.  In South Florida, our rentals are starting to recover.  We were the center of the news for a while and by the reports you would think we were living in apocalyptic zombie land. 

John thanks for sharing your thoughts!  Im also glad your Airbnb is doing well.  Another idea for STRs that depend on business travelers and to shift their target to another traveler profile.  People travel for many different reasons and vacation and business are just two.  Medical, academics, life events, entertainment, military, emergencies, relocation are some of the others.  The owners just need to look and think about what is around their property that attracts people to the area.  Then they can target those folks.

No industry has felt the full weight of Covid-19 like the travel industry. We went from over-tourism to no tourism in a matter of weeks. Hotels, restaurants, and car rental agencies have gone bankrupt; closing their doors indefinitely. Airports are virtually empty and fares are at all-time lows. There are worldwide travel restrictions and mandatory quarantines. The travel industry was ill-prepared for this once in a century event.

As bad as things are, I think it’s inevitable that travel will return. People are creatures of habit and we have a strong urge for exploration. How it returns is to be seen and full of speculation, but I have some ideas that I will explore further.

For one I think business travel will never return to pre-Covid-19 levels. Businesses were forced into the future and now having experienced video conferences has found them to be a great alternative to in-person meetings requiring travel. The immediacy and cost savings of video conferences will reduce business travel to levels we have not seen in a very long time. This will have lasting effects on airlines and hotels for years to come.

Next, I see people's desire for controlling their personal space increasing greatly when considering travel. The means of travel, accommodation types and travel destinations will all be measured with personal space in mind. Road trips with personal vehicles or RVs will become preferred to a crowded flight with mask requirements and temperature checks. Private accommodations of Airbnbs will feel much safer than hotels designed for the masses that increase the chance of bumping into an invected person at the turn of every corner or opening of the elevator door. Outdoor destinations and national parks will be more appealing than a trip to a vast city with tickets to a sporting or concert event. All of these things may lead to increased local travel.

If you can work from home then you can work from any home. An Airbnb just a short drive away may be very attractive to someone looking for variety in their workspace and the desire to mix business with pleasure. Airbnb is already reporting a surge in demand for local stays. according to Airbnb’s CEO, the number of nights booked at US listings between May 17th and June 3rd was greater than the same weeks from the previous year.

Lastly, there will likely be fewer vacation travelers. The International Labour Organization’s(ILO) latest estimate calculates a loss of 400 million full-time jobs globally. The numbers are uncertain and the areas affected will vary, but people facing a loss of income around the world is unquestionable. This will lessen vacation travel as people must prioritize their expenses. How bad is anyone's guess and will be tied to how quickly we can recover.

@Shiloh Lundahl

Hi Shiloh. I was to make sure I’m following your system here because it sounds awesome! Can you provide an example with numbers? I’m understanding that you make the purchase price seem higher than it really is by adding your rehab cost into the closing. But I don’t understand how your be fitting from this.

@Christopher Colbert

Yea I’ve yet to come across a property in Florida with an hoa that allows short term rentals less than 30 days. This basically leaves sfh as your property type. My home base in in Delray Beach which is located in Palm Beach county. Yea I’d be happy to talk to you about any future plans for investing in Palm Beach.

Originally posted by @Christopher Colbert:

Thanks, Joe.  The good news is that this property will definitely work as a long-term rental, which is why I initially purchased it, but I've decided to take my time with this one and wanted to explore my options.  Because of my time restrictions (I'm still working full-time) what I really want to find is a property manager who has done this sort of thing and could walk me through it or do it for me.

Chris I invest in as well as cohost with property owners to setup and manage a short term rental strategy and Joe is 100% correct.  The first thing you must do is see what the rules are in your area.  Some cities do a great job of providing information on their sites and others don't.  I typically find the info im looking for on the planning and zonning section of the city website and they will use the term short term rental or transient housing.  I always find a number and call and see what they say.  I also like to call the code enforcer and hear his or her take.   Just because there are listings in your area on AirBNB, it doesn't mean its legal.  If it is legal in your area let me know and I'll happily share some good pointers with you that will help your short term rental run smoothly and very profitably.

The reason I like short term over long term is because I have eyes and ears on my property constantly and I know it's being taken care of much more than most long term renters do, at least from my experience.   Multiple times a month I have my cleaners in there doing a professional cleaning and reporting any issues.  I also never worry about collecting rent or rent coming late and my cash flow is much better with short term.  Just a few reasons, but yes its worth researching.  You need to first see if you're in a market with short term demand and also if there are rules against it.  Then you need to find ways to automate the process otherwise it will be more work and maybe not worth the squeeze.  Good luck and give me a shout if you need any help. 

I mean what rental strategy.  Long or short.  Long meaning 1 year+ lease or short meaning days to 1 month lease.  Both have their pros and cons and definitely different expectations. 

Congrats Patrick! What kind of rental strategy are you intending to use?  I've done both long and short term and found short term to be the better option.