Is Making Money from Short-Term Rentals Easy? With Tanya Rooney

Summary

In this insightful podcast, Tanya Rooney shares her experiences and lessons in the real estate industry, focusing on the challenges and realities of short-term rentals. She emphasizes the importance of understanding numbers and adapting to the market's saturation. Tanya discusses the active nature of short-term rentals, the necessity of good design, and the impact of regulations. She also touches on medium-term rentals, highlighting the differences in management and clientele. The conversation is a valuable guide for those interested in navigating the dynamic world of property rentals.

Takeaways

• 😀 The speaker acknowledges that everyone experiences struggles and warns against trusting those who claim otherwise.
• 🏠 The short-term rental market has become saturated in recent years, making it less profitable to simply put any property on the market without careful consideration.
• 📉 The speaker emphasizes the importance of understanding numbers and financial literacy in real estate, as it is crucial for recognizing what is and isn't working in one's business.
• 🤔 The speaker admits to previously pleading ignorance about certain aspects of business, but stresses the importance of overcoming this and learning the necessary skills.
• 💡 A shift in mindset is highlighted as essential for personal growth and business success, particularly in the area of numbers and financial management.
• 🔢 The speaker shares their journey of self-improvement, moving from a negative self-perception in handling numbers to acknowledging their competence and learning more about their business's financial aspects.
• 🏘️ The speaker discusses the challenges of running a short-term rental business, noting that it is very active and not as passive as some might believe.
• 🛠️ The importance of having a good design and a well-thought-out strategy in the short-term rental market is underscored, as competition has increased and standards have risen.
• ⚖️ Regulatory changes are a significant risk in the short-term rental business, and it's crucial to stay informed and compliant with local laws and regulations.
• 🤝 The value of networking and community is highlighted as a means of learning and growing in the real estate and rental business.
• 📈 The speaker offers coaching services for those new to hosting on platforms like Airbnb, emphasizing the importance of automation and strategic planning in managing a successful rental business.

Q & A

What is the main challenge that people face in the short-term rental market according to the transcript?

The main challenge is the saturation of the market. It used to be easy to make money with any property, but now the market requires better design, location, and a good track record to be successful.

Why did the speaker choose to get into short-term rentals (STRs) and medium-term rentals (MTRs)?

The speaker chose to get into STRs and MTRs because they couldn't sell a property and were intrigued by the numbers presented by a contact. They also loved traveling and using short-term rentals themselves.

What is the difference between short-term and medium-term rentals as per the speaker's experience?

Short-term rentals are typically less than 30 days and require more active management due to frequent guest turnovers. Medium-term rentals are 30 days or more and involve less frequent turnovers but may require leases and eviction processes similar to long-term rentals.

What is the speaker's advice on dealing with regulations in the short-term rental business?

The speaker advises to check the local county, city, or state's official website for accurate information on regulations. They also suggest not relying on hearsay and to be proactive in understanding and navigating the regulatory environment.

How does the speaker feel about the importance of numbers in their real estate business?

The speaker initially felt they were not good with numbers but later realized the importance of understanding numbers to identify what was working and what wasn't in their business.

What is the speaker's view on comparing oneself to others in the short-term rental business?

The speaker advises not to compare oneself to those with larger or more established businesses. Instead, compare oneself to others at a similar stage and understand that the first couple of years are about staying afloat.

What does the speaker suggest for those who are not naturally good with numbers?

The speaker suggests finding someone with a 'number brain' to partner with and learn from. They emphasize that one doesn't have to be an expert in everything but should know enough to be effective.

How does the speaker describe the business of short-term rentals?

The speaker describes the business of short-term rentals as very active and similar to a hospitality business. It requires attention to detail, good design, and guest satisfaction.

What is the speaker's perspective on the role of community and networking in business?

The speaker values community and networking highly, seeing them as essential for learning, sharing experiences, and finding opportunities that can change one's business trajectory.

What advice does the speaker give for those interested in starting in short-term rentals?

The speaker advises new hosts to automate as many tasks as possible, to seek out education and coaching, and to be open to creative funding methods that don't necessarily involve traditional bank loans.