Anyone have success with Medium-Term Rentals in Colorado Springs?

Question

Hey Team,

Unfortunately, the wife and I have to pack up and leave Colorado Springs this summer. The Army has seen fit to finally send me to my next assignment. As much as we'd like to stay, we have to go and leave our house (that I own) behind.

To that end, I've had moderate success with STR in my home while I live here (average about $650/mo for a single room and shared space). But now that we're leaving for good, we have a choice - traditional long-term rental or furnished medium-term rental?

I know the pros and cons of each generally. But to get a baseline of what I can expect with medium-term rental, I wanted to ask folks in Colorado Springs who are successfully running a furnished medium-term rental about their success, rates, etc. so the wife and I can make an informed decision between long-term and medium term (and copy your business model).

We have a 3bd, 1.5ba 1,500+sqft SFH on the West Side (best side) in a totally-zoned residential neighborhood. One car garage, large front and back yard. Updating the half bath to make it a full, installing new flooring, and updating the kitchen.

So...what's your data? How are people who are operating furnished medium-term rentals in Colorado Springs operating? As an entire house and allowing subletting? By the room? If by the room, how are you managing several-different rooms? How much are you charging? What's your occupancy rate?

"I just want you to answer all of my questions and not act like I'm being annoying at all."

Thanks!

Erin Spradlin · Answer

@James Carlson @thadeous larkin (who I also cannot tag)- thank you for the shout out. I appreciate it(!)

James Carlson · Answer

For your reference: @Erin Spradlin

Thadeous Larkin · Answer

I was about to type up an unnecessarily long and convoluted definition of medium-term rental (there's not a strict legal definition or anything), but Erin Spradlin (who I can't tag for some reason. @James Carlson - help a brother out?) wrote a great blog post about them here - https://www.biggerpockets.com/blog/real-estate-medium-term-rentals-first-time-investments

In short - it's 31+ days of rental. The core demographic is traveling nurses and folks in town as corporate travelers. It's for a set period of time (e.g. three months), unlike a perpetual month-to-month lease that comes along with the eviction notifications of 21 days, etc.

I'm zoned R1, so I can't owner-occupy for STR once I move. The CoSpgs City Council never got back to me about what the military exemption actually means for military, so I'm assuming I won't be able to continue to STR.

Daniel Haberkost · Answer

@Thadeous Larkin I guess I'm not sure what you define as medium-term. I set the leases up as auto-renewing month-to-month leases so that I can terminate a lease quickly if need be. But the intent is long-term.

Aaron T. · Answer

What would you define as medium term?

I will be in this boat come the end of September and the Army takes me out of here. I planned on keeping mine as a STR though.

Thadeous Larkin · Answer

@Daniel Haberkost - Is that as a long-term rent-by-room, or a medium-term?

Management will depend on what we ultimately decide. Most local property managers don't really understand the medium-term rental market, so we'd use an REI investor buddy (who is also in the Army) for the next couple years if we went that route. Otherwise, we'd hire a local property management company.

Daniel Haberkost · Answer

@Thadeous Larkin I can comment on the “rent by the room” part. I charge $900 for my basement bedroom and $700 for both upstairs.

Do you have someone who will be local to help with management?

Anyone have success with Medium-Term Rentals in Colorado Springs?

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