Jan 29, 2021
Over the last few years, short term rentals grew rapidly in popularity. There were investors who bought properties with the sole intent of using them for Airbnb and short term stays. Some even leased apartments from other owners, just to list them on Airbnb, a strategy known as Airbnb arbitrage. However, when COVID hit, the party stopped. Many of those investors went bankrupt after being on the hook for rents across an entire portfolio, with no income due to travel restrictions. Tourism and travel have taken a hit and it makes the future of short-term rentals a bit murky. To get some clarity, we interviewed Tim Hubbard and asked him, are short term rentals still a good investment?
Tim is the founder of Midtown Stays and has successfully accommodated over 15,000 guests. He also helps others invest in short term rentals through his Rest Methods platform. In today’s show, we discuss the changing face of short-term rentals and what he has seen in his business, along with the industry. He shares where the strategy still makes sense and covers market research tips. In addition, he highlights how he runs his business remotely for anyone looking to emulate some of the success he has seen.
Investing in Short Term Rentals Post-COVID
Cities that are landlord-friendly tend to be more friendly towards short-term rental regulations too.
I lowered my rates when COVID hit, and my rentals in Sacramento were continuously booked.
Dense urban areas are more regulated due to low housing supply.
People are looking for more of an experience, which short-term rentals provide.
Not budgeting enough for renovations
Notion.so (Organization tool)
Most Recommended Book:
The Slight Edge
Wish I Knew When I Was Starting Out:
Returns are higher on small studio units and they are more easily manageable
Leaving my phone on airplane mode first thing in the morning for an hour or so, so I can focus.
The economy in the U.S.
Best Place to Grab a Bite in Medellin, Columbia
Rest Methods (Short Term Rental Coaching)