DO NOT Try Mid-Term Rentals Without Watching This Video

Summary

In 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.