Property Manager · Milwaukee, WI · Member since 2021 · 24 posts · 34 votes
Took a deep dive into analyzing my STRs this year. November marks the beginning of our slow season for the STR market in our area & I started noticing that even though I had to lower my prices to keep occupancy at a comfortable number, the guests seem more demanding & a little harder to please, resulting in more work for me & lower ratings, which impacts my overall, pretty high rating on my main platform (Airbnb). Last year around this time I had a traveling nurse reach out via Airbnb to rent one of my spaces for a 4-month period of time over the winter. This midterm rental situation worked out great for the slow season & then the property was available just as peak season started. This combination of STR & MTR seems to be the ideal way to max out profits & decrease my time investment. I listed one of my units on Furnished Finder & 3 days later I had 2 traveling nurses renting the unit for 3 months covering most of my off season & at a number that cash flows, which is not always a given over the winter months. According to my new tenants our state is in a nursing crisis. My properties are within 8 miles of 10 different hospitals making it a prime location for this type of rental. Is anyone else using this approach or only doing MTR? As we start seeing STR restrictions in more areas, I wonder if MTR is going to become more prevalent?
Real Estate Investor · East Falmouth, MA · Member since 2012 · 35 posts · 15 votes
4y
I have used MTR on our property on Cape Cod for the past 4 years. We manage STR Memorial Day thru Labor Day, with huge weekly rates and use May & Sept to do repairs and upkeep. I've successfully found mostly young families looking to buy or build in the area, who need a 6-7mo. lease. All 4 years have been great tenants, providing bonus income, paying utilities for 6 months and easing my worries about an unattended house in the winter. Proper screening and choosing the right tenant is key but I am a big proponent of the strategy in seasonal markets.
Investor · Metro East of St. Louis (Illinois) · Member since 2016 · 255 posts · 211 votes
4y
It really varies by market, but I know that it is a common technique in seasonal markets to seek out MTR guests to get them through the off-season.
I have also found that certain types of units don't work as well as STR. I am giving MTR a try on a studio apartment I have that has only been marginally successful on AirBnB.
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
STRs all the way for me. As full as I want to be, but both houses are in year round desirable areas. If you have a STR that is not really all that desirable, I guess you could do MTR, but I'd rather sell that and get into a true vacation rental. Much more income.......
Real Estate Investor · East Falmouth, MA · Member since 2012 · 35 posts · 15 votes
4y
I have used MTR on our property on Cape Cod for the past 4 years. We manage STR Memorial Day thru Labor Day, with huge weekly rates and use May & Sept to do repairs and upkeep. I've successfully found mostly young families looking to buy or build in the area, who need a 6-7mo. lease. All 4 years have been great tenants, providing bonus income, paying utilities for 6 months and easing my worries about an unattended house in the winter. Proper screening and choosing the right tenant is key but I am a big proponent of the strategy in seasonal markets.
It really varies by market, but I know that it is a common technique in seasonal markets to seek out MTR guests to get them through the off-season.
I have also found that certain types of units don't work as well as STR. I am giving MTR a try on a studio apartment I have that has only been marginally successful on AirBnB.
My property that sleeps the most amount of people always gets booked the fastest. I've never tried a STR that sleeps less than 6 people so I'm not as familiar with that market, but it would make sense that would be a better fit for MTR than a large property.
In addition to profit, there are a number of reasons why I do STR that would only work for a local property. 9 months out of the year, it is very busy & I am happy with my overall annual numbers. No matter how good your revenue is, there's always room for improvement. In the off season, 3 months out of the year, our occupancy can be great or sometimes it's just ok. MTR eliminates that risk and the overall work involved so it seems to be a really good option for STRs that experience a slow season, but I wouldn't say that having a slow season means that a STR is not desirable.
I would agree that vacation rentals likely do provide more income, but I question whether the ROI is that much better. From what I've seen the initial investment required to get a vacation home with good revenue potential is quite high.
A vacation rental is something I may pull the trigger on down the road, but I'm interested to see what the industry looks like in the next couple of years. On the national STR groups I follow, there are hosts voicing concerns about the saturation of these areas and what that means for property prices, rates & regulation. I've also seen some discussions on what effect inflation is going to have on travel and the impact to vacation destinations.
I haven't, thanks I'll definitely check it out! I'm new to MTR and only plan to do it 3-4 months of the year. The other months are too profitable as a STR to give up!
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
4y
@Lisa Loesel, I have short term rentals and I try to get tenants for at least 3 of my slowest months of January through March. I make less per month than STR rates, but I often drop to 5 to 10 nights rented during these months compared to renting 29 out of 30 days during the summer. Traveling nurses are my main mid term renters. Not all areas are able have good occupancy year round. It doesn't mean the model doesn't work there.
Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
4y
@Lisa Loesel I have a MTR in Austin, TX. I find it is a great way to increase revenue over traditional LTR while still getting around the city's strict STR laws. I think it is a great strategy and the demand has been way higher than I ever expected!
Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
3y
Your words from 2 years ago were spot on @Lisa Loesel. Demand for MTRs has continued to increase. Lots of STR owners are pivoting to MTR not necessarily to fill their off season but because of the feeding frenzy that has hit the STR niche in certain markets. The other trend I'm seeing is more people looking for a longer stay in a furnished rental who are not travel medical professionals. Since most of the world went remote during COVID, a large swath of the working population has figured out they can work from anywhere and that's exactly what they're doing. There's a lot of WFH/vacations happening out there which is why I think demand is really shooting up. Why not stay in a really nice space for a month or longer while WFH and also be able to see different parts of the country and have some cool experiences?