Rental Property Investor 路 Champaign, IL 路 Member since 2012 路 192 posts 路 74 votes
I have a couple Airbnb's up and running in a college market and I am starting to see college students / traveling scholars use Airbnb for their mid-term (1-6 month) housing needs. Is anyone else seeing this transition? As I plan out the remainder of my plan to 10 Airbnb units I am starting to lean towards the mid-term type of guest. I believe with the higher occupancy and lower operational needs this is a better model as compared to trying to increase prices and attract more of a traditional 1-2 night guest.
Questions
1) anyone else started to see the transition to mid-term rentals on platforms like Airbnb, VRBO, and Booking.com for college markets?
2) Is there a future where 10%-25% of the housing needs (1-6 months) are through these platforms?
3) If you have experience: what is your minimum number of nights stay, pricing strategy, and expected occupancy across your units?
Cambridge, MA 路 Member since 2015 路 651 posts 路 736 votes
4y
@Scott Dixon My units are also in a college town. I mostly rent mid-term 3 - 9 months. In fact, only one of my units is an STR and it is only an STR when it is not being rented to a visiting scholar.
I never use Airbnb for mid-term rentals because it is so expensive. There are much, much cheaper platforms for mid-term rentals. SabbaticalHomes is the best worldwide platform for mid-term academic rentals. The local college off-campus housing platforms are the other platform I use. Both MIT & Harvard partner with apartments.com for their off-campus housing.
I am very strict with my start and end dates on the unit that is never on the STR market. Leases must begin on Sep 1, Jan 1 or Jun 1 and they must end on Dec 31, May 31 or Aug 31.
Other than insisting leases end by May 31, I am flexible on the unit that is on the STR market because I can list it on Airbnb when an academic has not leased it. I insist on the leases ending by May 31 so that I can maintain super host with summer vacation rentals. I lose money on January STRs but these bookings also help me maintain super host and it is nice that I can offer the flexibility to the academics.
Other than 2020 when Covid hit, the unit that is never on the STR market had zero days vacant. In 2020 there were 15 days vacant and I had to slash my 2020/2021 rent but the rent went right back up to pre pandemic levels last fall and is now 5% higher.
Pricing strategy on the mid-term market is easy. Just look at other listings in your area on SabbaticalHomes.
Rental Property Investor 路 Champaign, IL 路 Member since 2012 路 192 posts 路 74 votes
4y
@Luke Carl for sure on my standard student rental units. When it comes to units on Airbnb/VRBO for 1-6 months you are still pushing for a lease? Any additional thoughts are appreciated. Take care.
Investor 路 MI 路 Member since 2015 路 227 posts 路 478 votes
4y
I'm not an STR operator, but I do operate student rentals.
I would NOT want students in anything STR grade. My student rentals are B- properties and they get beat up on the regular. With higher end finishings and cleanliness requirements you would be pulling your hair (and wallet) out every turnover.
Cambridge, MA 路 Member since 2015 路 651 posts 路 736 votes
4y
@Scott Dixon My units are also in a college town. I mostly rent mid-term 3 - 9 months. In fact, only one of my units is an STR and it is only an STR when it is not being rented to a visiting scholar.
I never use Airbnb for mid-term rentals because it is so expensive. There are much, much cheaper platforms for mid-term rentals. SabbaticalHomes is the best worldwide platform for mid-term academic rentals. The local college off-campus housing platforms are the other platform I use. Both MIT & Harvard partner with apartments.com for their off-campus housing.
I am very strict with my start and end dates on the unit that is never on the STR market. Leases must begin on Sep 1, Jan 1 or Jun 1 and they must end on Dec 31, May 31 or Aug 31.
Other than insisting leases end by May 31, I am flexible on the unit that is on the STR market because I can list it on Airbnb when an academic has not leased it. I insist on the leases ending by May 31 so that I can maintain super host with summer vacation rentals. I lose money on January STRs but these bookings also help me maintain super host and it is nice that I can offer the flexibility to the academics.
Other than 2020 when Covid hit, the unit that is never on the STR market had zero days vacant. In 2020 there were 15 days vacant and I had to slash my 2020/2021 rent but the rent went right back up to pre pandemic levels last fall and is now 5% higher.
Pricing strategy on the mid-term market is easy. Just look at other listings in your area on SabbaticalHomes.
Real Estate Agent 路 Austin, TX 路 Member since 2020 路 1k+ posts 路 941 votes
4y
@Scott Dixon I could definitely see this becoming a reality. I don't have experience with the student rental market but I do with the MTR market. Like mentioned before the property will get more wear and tare from college students than typical MTR guests. I would absolutely do a lease for college students, although I don't use leases on my own property. It would be important to have a specific check-in/check-out day ranges. If you miss the beginning of the semester by a couple weeks you might not have any guests.
@Scott Dixon I could definitely see this becoming a reality. I don't have experience with the student rental market but I do with the MTR market. Like mentioned before the property will get more wear and tare from college students than typical MTR guests. I would absolutely do a lease for college students, although I don't use leases on my own property. It would be important to have a specific check-in/check-out day ranges. If you miss the beginning of the semester by a couple weeks you might not have any guests.
Who is your target renter? Are you going after traveling nurses, construction workers, traveling scholars, or maybe another common type of renter which is looking for MTR in your area? Thanks!
@Scott Dixon My units are also in a college town. I mostly rent mid-term 3 - 9 months. In fact, only one of my units is an STR and it is only an STR when it is not being rented to a visiting scholar.
I never use Airbnb for mid-term rentals because it is so expensive. There are much, much cheaper platforms for mid-term rentals. SabbaticalHomes is the best worldwide platform for mid-term academic rentals. The local college off-campus housing platforms are the other platform I use. Both MIT & Harvard partner with apartments.com for their off-campus housing.
I am very strict with my start and end dates on the unit that is never on the STR market. Leases must begin on Sep 1, Jan 1 or Jun 1 and they must end on Dec 31, May 31 or Aug 31.
Other than insisting leases end by May 31, I am flexible on the unit that is on the STR market because I can list it on Airbnb when an academic has not leased it. I insist on the leases ending by May 31 so that I can maintain super host with summer vacation rentals. I lose money on January STRs but these bookings also help me maintain super host and it is nice that I can offer the flexibility to the academics.
Other than 2020 when Covid hit, the unit that is never on the STR market had zero days vacant. In 2020 there were 15 days vacant and I had to slash my 2020/2021 rent but the rent went right back up to pre pandemic levels last fall and is now 5% higher.
Pricing strategy on the mid-term market is easy. Just look at other listings in your area on SabbaticalHomes.
Good stuff Carolyn! I like SabbaticalHomes but the only issue is at least in my area the homes are not renting for much of a premium over a standard 12-month lease. Alternatively, if I run Airbnb's targetting some of these same renters I can usually 2X my monthly income after taking out cohost, additional utilities, allowance for furnishings, and cleaning. For this reason, I am going to stick to the Airbnb platform but appreciate your feedback on the topic. Take care.
Proper terminology is STR. Airbnb is just one type of STR.
You need a lease for anything longer than 30 days.
Thanks for the feedback! What is driving the "need" for a lease? Through Airbnb you have "Aircover for Hosts" which does a pretty solid job covering you from larger risks like damage to your unit. Also, Airbnb is starting to actually test out monthly rentals. When you set up your property the platform now asks you if you are interested in renting monthly and if so at what price. Something I am keeping my eye on as the fees are reduced for a monthly rental through Airbnb and might fit certain scenarios.
Cambridge, MA 路 Member since 2015 路 651 posts 路 736 votes
4y
@Scott Dixon re: I like SabbaticalHomes but the only issue is at least in my area the homes are not renting for much of a premium over a standard 12-month lease.
Wow! I'm amazed. I'm often struggling to get as much from my STR as I get from renting longer term. Perhaps it is because we have a 1% vacancy rate here in Cambridge. During the height of the vacation season, if I push the nightly rates as much as I can and still stay booked, I will make at most 1.8x what I make renting to scholars. AND I have to put up with guests dinging me on Value! This past January I cut my nightly rates to well below my normal academic term rates in order to maintain my super host status and someone gave me a 3 on value! Clearly this person had never tried to rent an apartment in Cambridge!
@Scott Dixon I could definitely see this becoming a reality. I don't have experience with the student rental market but I do with the MTR market. Like mentioned before the property will get more wear and tare from college students than typical MTR guests. I would absolutely do a lease for college students, although I don't use leases on my own property. It would be important to have a specific check-in/check-out day ranges. If you miss the beginning of the semester by a couple weeks you might not have any guests.
Who is your target renter? Are you going after traveling nurses, construction workers, traveling scholars, or maybe another common type of renter which is looking for MTR in your area? Thanks!
1. People relocating to Austin and need time to find a home to purchase or find an apartment. 2. People working remotely. 3. Traveling nurses, people on contracts, corporate housing.
Contractor/Investor/Consultant 路 San Diego / Phoenix 路 Member since 2021 路 12k+ posts 路 15k+ votes
4y
No No NO....After 30 days they become tenants and get tenant rights. In your state that could mean big trouble. Not only that but you're losing money. Kids can't afford $200 a night/$6000 a month for a nice place...they will tear it up anyway. You ever been to a college party?
No No NO....After 30 days they become tenants and get tenant rights. In your state that could mean big trouble. Not only that but you're losing money. Kids can't afford $200 a night/$6000 a month for a nice place...they will tear it up anyway. You ever been to a college party?
Please pass on this, worst idea ever!
Thanks for the feedback and yes I have both participated in the student experience and also managed my College rentals for 10+ years now. I have seen a few things along the way but that doesn't change my perspective of the path ahead and also I am seeing new features coming from Airbnb that wouldn't rule out they want a piece of the MTR or executive rental market.
@Scott Dixon I could definitely see this becoming a reality. I don't have experience with the student rental market but I do with the MTR market. Like mentioned before the property will get more wear and tare from college students than typical MTR guests. I would absolutely do a lease for college students, although I don't use leases on my own property. It would be important to have a specific check-in/check-out day ranges. If you miss the beginning of the semester by a couple weeks you might not have any guests.
Who is your target renter? Are you going after traveling nurses, construction workers, traveling scholars, or maybe another common type of renter which is looking for MTR in your area? Thanks!
1. People relocating to Austin and need time to find a home to purchase or find an apartment. 2. People working remotely. 3. Traveling nurses, people on contracts, corporate housing.
馃挴 this is the same types of guests we are seeing come through. I think it is a healthy market and if things start going south I will just reposition the properties into standard rentals without too much work.