DO NOT Try Mid-Term Rentals Without Watching This Video
Summary
TLDRIn this video, Sean Rockige, an experienced short-term rental operator, discusses the midterm rental market, emphasizing that it is not a new trend but a longstanding concept known as corporate housing or workforce accommodations. He explains how to effectively enter the midterm rental market, highlighting the importance of furnished properties and pricing strategies to maximize income. Sean debunks misconceptions about midterm rentals and provides insights on leveraging platforms like Airbnb to attract longer stays. He also shares advanced strategies for managing and marketing midterm rentals, ensuring viewers can optimize their rental income year-round.
Takeaways
- 😀 Midterm rentals are a trend but not a new concept; they are part of the broader short-term rental market.
- 🏠 The term 'midterm rentals' is often used interchangeably with 'corporate housing' and 'workforce accommodations', but they are distinct segments with a fine line separating them.
- 💡 Midterm rentals are gaining attention as niches in the short-term rental space become oversaturated, and influencers seek new topics.
- 👉 Sean Rockige, the speaker, clarifies that 'midterm rentals' as a distinct category doesn't exist; it's a keyword for a type of customer.
- 📈 The speaker generates nearly a million dollars a year from midterm rentals, indicating the profitability of this segment.
- 🔑 The difference between traditional and transient housing often comes down to the requirement of signing a lease.
- 🤔 Midterm rentals can be conducted without owning property, as they can be managed through arbitrage.
- 📊 Airbnb has seen an increase in monthly bookings and has become a significant platform for midterm rentals, although it's losing market share to other platforms.
- 🛏️ Properties suitable for short-term stays can also be suitable for midterm rentals with the right amenities and pricing strategies.
- 💰 Having a mix of nightly, weekly, and monthly bookings can maximize revenue throughout the year, rather than focusing solely on one type of rental.
- 📝 Understanding and implementing effective pricing strategies for different types of stays is crucial for success in the rental market.
- 📞 Outbound selling, such as contacting relocation companies directly, is a key strategy for securing midterm rentals.
Q & A
What is the main focus of the video script?
-The main focus of the video script is to educate viewers about the truth behind the midterm rental market and provide strategies for making money in the short-term rental space, particularly with furnished properties.
Who is Sean rockige and what is his experience in the short-term rental industry?
-Sean rockige is a short-term rental operator with over seven years of experience and currently has over 150 properties live. He has also mentioned that nearly one million dollars of his annual short-term rental income comes from mid-term rentals.
What is the controversial statement made by Sean in the video?
-The controversial statement made by Sean is that 'midterm rentals don't exist,' challenging the common understanding and emphasizing that it's more about the type of customer one can attract to their property.
What is the difference between traditional housing and transient housing according to the script?
-The difference between traditional housing and transient housing is based on whether a lease is signed. Traditional housing includes various types like fully furnished apartments, all bills paid, no credit check housing, etc., while transient housing is typically characterized by short stays and no lease agreements.
How does Sean define the midterm rental market in relation to Airbnb?
-Sean defines the midterm rental market on Airbnb as a space where properties can be booked for stays longer than the average (e.g., 14 months) without signing a lease, often by travelers like contract nurses.
What is the significance of the term 'arbitrage operator' in the context of the video?
-An 'arbitrage operator' refers to someone who operates in the rental market without owning the properties. They profit by renting out properties they do not own, similar to how Sean makes a significant portion of his income from midterm rentals without owning any of the properties.
What is the average length of stay for Airbnb properties mentioned in the script?
-The average length of stay for Airbnb properties is mentioned as four to six days.
How has Airbnb's algorithm change affected monthly stays?
-Airbnb's algorithm change has made it easier for travelers to find monthly stays. It now prioritizes properties that have had good monthly stays and positive reviews in search results for monthly stays.
What are some strategies Sean suggests for maximizing revenue in the short-term rental market?
-Sean suggests having two separate pricing strategies for different types of stays, such as single night rates with discounts for three or four-day stays, and different discounts for 14-day and 28-day stays to capture longer bookings. He also emphasizes the importance of understanding the market and adjusting prices dynamically for peak and slow seasons.
What is the role of outbound selling in the midterm rental market according to Sean?
-Outbound selling is crucial in the midterm rental market, especially for corporate housing. It involves actively reaching out to potential clients like relocation companies and contract nurses, rather than waiting for them to find the property through a platform.
Why does Sean recommend having a mix of different types of stays in the short-term rental market?
-Sean recommends a mix of different types of stays to maximize revenue all year round. This includes monthly stays, multi-week stays, and short-term stays, as focusing solely on one type, like monthly stays, could lead to missed opportunities for revenue generation.
Outlines
😀 Understanding the Midterm Rental Market
Sean Rockige, a short-term rental operator with over 150 properties, introduces the concept of midterm rentals and clarifies misconceptions about the market. He explains that midterm rentals have always existed under various names like corporate housing and workforce accommodations. Sean emphasizes that the term 'midterm rentals' is a keyword for a specific type of customer rather than a distinct market. He also shares that he earns nearly a million dollars a year from this segment, which is often misunderstood due to the influence of content creators. Sean aims to provide a strategy for success in the midterm rental space, regardless of location.
🏠 Navigating the Spectrum of Housing Options
The script discusses the spectrum of housing options, from traditional to transient, and how they differ based on the requirement of signing a lease. It explains that properties listed on platforms like Airbnb, which do not require a lease for stays, can also be considered for midterm rentals. Sean points out that one can participate in the midterm rental market either as an owner or an arbitrage operator. He also touches on the increase in monthly bookings on Airbnb post-COVID and the importance of differentiating between short-term and midterm stays based on the length of stay and the type of customer, such as travel nurses or contract workers.
📈 Pricing Strategies for Midterm Rentals
Sean delves into the intricacies of pricing strategies for midterm rentals, explaining how to set rates for different types of stays. He suggests that properties suitable for short-term rentals can also be booked for midterm stays without significant changes. The script highlights the importance of having a fully stocked kitchen and a washer and dryer as amenities for longer stays. Sean also discusses the benefits of listing on Airbnb for monthly stays, as the platform's algorithm favors properties with positive reviews for specific search criteria. He advises on the importance of understanding the market and setting monthly rates competitively, taking into account what travelers are willing to pay.
📊 Optimizing for Both Peak and Slow Seasons
The video script addresses the importance of having a balanced approach to renting out properties, with a mix of monthly, multi-week, and short-term bookings to maximize revenue throughout the year. Sean explains that his properties often have monthly stays, which simplify business operations at scale. He also mentions that Airbnb's algorithm now prioritizes satisfaction over interest, meaning that positive reviews for monthly stays can boost a property's visibility. Sean suggests that operators should have dual pricing strategies to cater to both peak and slow seasons, and he hints at future videos that will cover outbound selling and alternative platforms for securing monthly bookings.
Mindmap
Keywords
💡Midterm Rentals
💡Short-term Rental
💡Arbitrage Operator
💡Corporate Housing
💡Workforce Accommodations
💡OTA (Online Travel Agency)
💡Furnish Finder
💡Pricing Strategy
💡Outbound Selling
💡Satisfaction Action Algorithm
💡Regulations
Highlights
Midterm rentals are a trend but not as commonly perceived; they are part of the larger short-term rental market.
The presenter, Sean Rockige, has over seven years of experience and earns nearly a million dollars annually from midterm rentals.
Midterm rentals have always existed under different names such as corporate housing or workforce accommodations.
There is a fine line between short-term rentals and midterm rentals, often distinguished by the presence of a lease.
Midterm rentals can be conducted without owning property through a model known as 'arbitrage'.
The demand for workforce accommodations has increased, especially for roles like contract nurses.
The presenter suggests that properties suitable for short-term Airbnb stays are also suitable for midterm rentals.
Airbnb has seen an increase in monthly bookings and has adjusted its algorithm to favor properties that satisfy longer stays.
Having a fully stocked kitchen and a washer/dryer are amenities that can attract longer stay guests.
The presenter advises against focusing solely on monthly rentals unless market regulations dictate it.
There are strategies for maximizing revenue during peak and slow seasons by adjusting the balance of short-term and midterm stays.
The presenter mentions using platforms like Peerspace for in-between monthly stays to avoid short-term rental regulations.
Outbound selling, where property owners actively market to potential renters, is a key strategy for securing midterm stays.
Different pricing strategies for short-term and midterm stays can optimize revenue throughout the year.
The presenter emphasizes the importance of understanding the market and the property's potential before diving into the midterm rental strategy.
Midterm rentals are just one aspect of the transient accommodations market and should be part of a balanced approach to maximize revenue.
Transcripts
midterm rentals yes they're absolutely a
thing but this trend isn't what you
think it is if you're on this video
you're probably looking for the best way
to make money in the short-term rental
space as opposed to a simple short-term
rental and I'm going to give that to you
in this video but first I need to teach
you the truth about the midterm rental
market so that way you have the right
understanding coming in you'll make the
most money with your furnished property
and you'll be super happy that you did
it and not all midterm rental markets
are created equal you're going to need
to watch this video if you're serious
about midterm rentals by the end of this
video you're gonna have a strategy that
works no matter where you are you're
going to get some of this business let's
go Welcome Back YouTube world my name is
Sean rockige I'm a short-term rental
operator with over seven years
experience over 150 properties live
currently and fun fact I've never told
you before nearly one million dollars
per year of my short-term rental income
is actually mid-term rental income as
the keyword would have it on this video
now I need to make a confession to you
in this video and then teach you a lot
about the midterm rental space so that
way you can make some serious cash in
this industry because there is
definitely cash in this sector but the
first thing I need to tell you what I
say the trend isn't what you think it is
is because I'm a YouTuber and many other
content creators are either YouTubers
bloggers Educators the midterm rental
market has always existed it's always
been a thing it goes by many monikers
and corporate housing is one Workforce
accommodations is another one there is a
fine line that separates two completely
different Industries but on one side of
this line is both short-term rentals and
Midterm rentals they both exist in the
same industry and this is where I think
a lot of people are getting this wrong
midterm rentals is just a keyword to
describe one type of customer that you
can get in your property and the reason
why this keyword is getting big is
because a lot of the niches in the space
have been oversold there's a lot of
Airbnb content people doing verbo
content there's people doing all sorts
of different real estate content and
influencers are looking for new places
to attack you the audience to get in
front of your face that's a totally
normal thing what I'm about to tell you
here is going to be a little little
controversial but it's going to be in
your best interest and looking at it
this way is going to be how you
introduce yourself the right way to this
concept is how you're going to make the
most money because you're going to have
a cleaner go at this industry it's the
only way I can say it midterm rentals
don't exist that's the controversial
statement and so hang on with me here
let's talk about the industry at large
at first that fine line is the
difference between traditional housing
and transient housing anytime that you
buy a property or rent a property that's
traditional housing right it's a
property it's completely empty but
there's a spectrum in traditional
housing isn't there you've got fully
furnished apartments you've got all
bills paid you've got second chance like
no credit check housing you've got
month-to-month all bills paid right
you've got these no contract kind of
things and as we get closer and closer
to furnished all bills paid no credit
check month to month now we're right
there right we're right there on that
line that jumps into transient the
difference between traditional housing
and transient housing tends to be
whether or not somebody has to sign a
lease now midterm rentals some people
are making their persons sign leases for
these midterm rentals but the truth is
if you've got a midterm rental on an OTA
like Airbnb if a travel nurse which is
what you're typically thinking of in
this midterm stay Market if a travel
nurse booked on Airbnb which one is
booked from me for 14 months in an
Airbnb property before they didn't sign
a lease that's totally normal so a lot
of people really Define the space
differences whether or not somebody's a
leaseholder and you can do midterm
rentals without owning property because
like I just told you I'm making about a
million just under a million dollars a
year in monthly rentals and I don't own
a single one of my 155 doors they're all
Arbitrage so you could access the
midterm rental market as an owner or as
a Arbitrage operator so let's look at
the other half let's look at the half
that is transient if we go all the way
to the very end the Airbnb space right
the verbo space the the weekend parties
in Austin kind of space you'll either
buy a house have this big house big
beautiful place with a hot tub or a pool
and you'll get people staying for a
couple days the average length of stay
on Airbnb is four to six days long but
Airbnb saw an increase of monthly
bookings by about as much as 50 percent
right after covet hit now we also have a
staff shortage in certain key roles in
this country that make the workforce
accommodations part especially juicy
contract nurses can make six or eight
thousand dollars a week they can make a
ton of money and I have a few friends in
Dallas where I live that are contract
nurses one is placed in Berkeley
California right now and one is placed
in Miami right now and they'll be back
in Dallas in a few months but they'll
pay good money if they want to a lot of
times they don't want to though because
they want to keep all that contract
money they're not going to Berkeley to
go vacation for three months they're
going to be working their tails off so
they tend to want a more price effective
more neutral easy to live in easy to
work from kind of environment they don't
want want the Airbnb accommodation at
this probably one of the first things
that you're starting to want to wonder
is what kind of property do I need to
have to perform well in short-term
rental accommodations by the way I'm in
Las Vegas in this seven bedroom house a
friend of mine owns it he's an Airbnb
host can't tell you where it is right
because of a short term rental
regulations here but we met at the
short-term rental wealth conference in
Nashville last year which I'm not
speaking at this year I will not be
speaking at the Str conference they
didn't invite me it's okay I'll just do
other stuff it's absolutely cool so this
property is way too big for your typical
midterm rental for a travel nurse but
there are other types of placements that
can make a large six-bedroom house money
in the midterm rental market so you do
have the opportunity to do midterm
rentals even with a larger home you're
just going to have to attack a different
consumer type but back to the Airbnb
thing I was talking about normally a
property either an apartment or a house
the average length of stays four to six
nights but then airbnb's you know just a
stark increase in the amount of monthly
rentals that they've been getting so
Airbnb has been now probably one of the
biggest platforms for midterm rentals
but Airbnb also been losing market share
to Virgo for stuff and people do know
about furnish finder and so now that
there's more properties on furnace
finder it is a more reliable place for
travel nurses to go find some space the
most important thing I think I can tell
you at this point if you have a property
that can go on Airbnb for four nights or
six nights it is essentially the same
property that can also be booked off to
a travel nurse or relocating family or
an insurance company or a corporate
housing contract it's the same exact
property there's nothing that you need
to change to get that booking your
property if you want to get more monthly
bookings could use some different
amenities which I've actually covered in
different videos for example having a
more fully stocked kitchen one that
people can cook in allows people to
settle into a home and save money from
not having to eat out a washer and dryer
for longer stays is important and what
you'll notice here the theme will be
that anytime I've said the word longer
stay in a previous video that longer
stay could be multi-week or it could be
multi-month all the same advice I've
ever given you for longer stays will
apply to the monthly rental market if
you were only trying to win business on
the monthly rental market you're going
to completely forsake the vast majority
of money that you could make the only
time that you might do monthly rentals
or midterms as your main strategy is in
a market where the regulations prevent
you from doing it now there are really
slick ways to do monthly rentals and you
never do any short-term rentals like
utilizing something like peer space and
I've taught my students in Los Angeles
and New York to do this where you do
monthly stays only and then in between
your monthly stays you're going to want
to use peer space which is a place that
people can rent by the hour for photo
shoots or video shoots that is really
cool because that's not an accommodation
so when the regulations say somebody
who's staying in an accommodation has to
stay more than 30 days the extra bonus
days that you have left over can be
booked off for photo shoots and not
violate short-term rental regulation
laws that's a really good split but
there's only very specific types of
properties that I advise that you do
peer space in in a place like New York
or Los Angeles and I teach that stuff in
my course how to set those properties a
monthly peer space combo something I
teach in cracking soup roast and we've
been teaching this for years like I said
midterm States isn't a new thing but if
you're not in a market that requires it
maybe you have a soft requirement like I
just did a video where I reviewed Shelby
Church's property and her main pricing
strategy should be monthly flavored
until it's peak season and when peak
season hits she can use all of her you
know rental contract allowance because
Palm Springs has a max 36 bookings per
year thing she can use that short-term
rental contract allowance in peak season
just Jam the most money three months out
of the year but then do like a
multi-week or multi-month strategy the
rest of the year midterms are highly
valid for you know precise markets that
have really weird regulations or a ban
all the way but even in a market where
you don't have a band or you don't have
regulations you might even have a slow
season so monthly stays for midterm
stays become valid in slow season
because what happens is a lot of
providers are only priced for one type
of customer if you're in a market where
most providers make so much money in
peak season a three night or four night
long stays and those providers don't
change their pricing strategy coming
into slow season then you have a
competitive Advantage by having both a
really good Prime market pricing
strategy and a slow season pricing
strategy the real advice here for you is
if you have the ability to do both you
should do both and the reason why thirty
percent of my properties are monthly at
any point in time is because at scale
with 150 dollars there's a lot of
employees that I have to run this
business a lot of housekeepers so we
actually try to have more monthly stays
because it makes it easier for us to run
our business now one of the coolest
things that you need to know is Airbnb
has redone their algorithm to make
finding monthly stays easier for
travelers which means if you're a
monthly State provider you're going to
want to get your business on Airbnb so
anybody that's telling you really to
push into furnish finder or
apartments.com by the way you can
actually do monthly stays for your
short-term rental on apartments.com and
other websites and I'm going to do a
separate video on five ways to get more
monthly stays we're going to do that in
a future video aside from doing those
things right because I really don't
recommend when you're new to monthly
states to try to go all these other
places to get your monthly rentals if
you can get that filled on Airbnb the
way that Airbnb populates search now is
if you've had a good monthly stay in
your property and somebody searches
Airbnb for monthly stays again you get
pushed to the top Airbnb switching their
algorithm from specifically an interest
algorithm to a satisfaction action
algorithm so if you want to show up on
the first page of search in Airbnb now
for the consumer type that you want to
service you need to satisfy a
reservation prior right so let's say you
have a house with a pool when somebody
searches for a pool in Las Vegas and
goes and stays in a pool in Las Vegas
they're going to rate your place you're
going to get a review if somebody gives
you a great review and they searched for
a pool when they started their
reservation then your amenities get
rated five stars if somebody searched
for a hot tub and gave you a three-star
review but somebody searched for a gym
and gave you a five star review they're
going to think that your gym was
five-star and your hot tub was three
star so now people have five star
ratings for hot tub searches will pop up
more because your search is when
somebody searched for a hot tub and
booked with you they thought your hot
tub sucked and that's going to happen so
it's a satisfaction algorithm so in this
case if somebody searches for a monthly
stay which you can actually find out if
people are staying by the month by
searching these listings if somebody
does search for a monthly stay they book
with you they give you a good review
you're going to show up in more searches
for monthly stays so your best way to
get more monthly stays is to give a good
price on Airbnb and initially get some
monthly traffic now this gets to the
meta the real deep nerdy stuff of the
midterm State Market you can have two
pricing strategies on your short-term
rental property right now when I do my
pricing strategy I have a single night
rate and then I do a three day and four
Day discount I have two different prices
for three day and 40 discount I do this
to try to maximize the weekend and
weekday bookings that I get in
combination so that way when people are
booking certain dates um they get a
really competitive rate for the weekdays
they get a really competitive rate for
the weekends but if they want a book for
one or two nights they're gonna pay
extra right that's my pricing strategy
for my short-term rental market but my
seven day and longer discounts start to
play a different game my 28 night
discount isn't just some relative
discount compared to my normal price I
actually go into the Airbnb Market space
look at what people are paying by the
month for their monthly rentals finding
out what people are making and then I
set my monthly discount based on what
people will pay for monthly stays if I
want them and of course for what months
of the year do I want monthly stays
because in peak season I don't want
month these days I want the week and
long and week-long bookings I want to
maximize my Revenue in peak season I
really want to use the midterm rental
strategy for my slower season so my
listings are booked through slow season
while everybody else is just scrambling
for bookings this is a really good
strategy so what I would implore you to
do is to have a better understanding of
pricing strategy in general and I've got
a free playlist on pricing strategy and
if you do this my way you'll have two
separate pricing strategies on your
Airbnb listing even if your nightly rate
with three day four Day discounts and
then you're gonna have like a 14 day and
28 Day discount that start to capture
you longer bookings you'll also be able
to dynamically price and buoy your
prices up for peak season and prices
down for slow season and then people
will start to book you in slow season
for monthly stays and if you feel like
it's really hard to manage all the
properties that you have let's say you
buy 50 houses you can start to give more
of a juicy monthly rate all around and
just try to get more monthly stays
forever that way you're not managing so
many housekeepers in future videos we
will talk about outbound selling your
property because that is really the True
Heart of monthly stays is the midterm
Market the corporate housing market is
where you have a furnished property all
bills paid where people can show up like
an airbn drop their luggage off but
instead of waiting for a platform to
find that for you the most elegant
midterm State companies have a sales guy
getting on the phone and if you remember
the video I did during covid I taught
you all this three-ish almost years ago
I picked the phone and I started calling
relocation companies and I taught you
that two and a half years ago picking up
the phone and doing outbound sales but
I'll do a new 2022 2023 version of this
where I'm going to teach you guys how to
do some outbound selling to get some
monthly stays I'll teach you some
non-airb non-verbal non-furnish finder
platforms I'm going to show you the five
ways to get more monthly bookings and
the platforms and non-platform ways to
go get those but the most important
thing before you go and try to get all
fancy is you need to understand that on
this half Transient Accommodations
monthly stays midterm stays are just a
shade of gray in the scale and if you
try to do monthly stays without being
forced to if you're not in a market
where you have to do monthly if you try
to prioritize monthly because you think
it's better you're coming in with the
wrong bias you're looking at it the
wrong way your property should have the
healthy blend of monthly opportunities
multi-week out opportunities three day
four day opportunities you want to
maximize your Revenue all year and if
you think that you're going to have some
better go at the monthly Market just
because you're having a hard run in the
short term space you need to look at
yourself as an operator look at your
property and it's quality and be more
honest with yourself now I have other
videos on amenities what to buy for your
space I did a very recent video on what
to buy and what not to buy amenities
that you need for your property we talk
about long-term entities and short-term
amenities go watch that video until I
get you more midterm keyword heavy
videos those ones will service you it's
going to be nearly the same content I'm
going to tell you that right now but the
reason why you're going to see midterm
stay YouTube videos and blogs on Bigger
Pockets is because it is a keyword that
people are trying to capture to get your
attention and to influence you that's
very specifically it but midterm stays
are no different really than any other
transient traffic you just have a
different consumer type that might have
a different couple amenities that they
want and you're gonna have less
transactions keep it simple guys keep
this simple it's not that hard and it's
not that scary thank you so much for
watching this video please like And
subscribe almost forgot to ask I'll see
you on the other side
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