LTR/MidTerm rentals/Travelling nurses - demand data

[Gururaj Iyer]

Hello, has anyone converted their STR back into a LTR or a Mid term rental? Trying to evaluate if there is a niche demand for individual rooms or units in a zone where there is very high demand for long term rentals? Also where do you generally find typical comps for expected rents(for long term rentals) ? Tried using Zillow however couldn't get to anything .

Note - i have a strong STR portfolio however trying to dabble into the LTR mode and running comps is fairly new

[Bonnie Low]

Generally speaking, you'll get the highest cash flow from STRs, second highest from medium-term rentals and lowest from LTRs. In other words, LTRs will be at market rates, STRs are usually far above the LTR market rate on a monthly basis and MTRs run somewhere in the middle. So if you're doing well now with STRs, there wouldn't be an advantage simply from a cash flow perspective to convert to an MTR. If your area is saturated with STRs and you're seeing your occupancy rates decrease or you're having to drop your nightly rates, then you might want to consider converting. That market is for more than just nurses. There are lots of traveling professionals within the health care field as well as corporate travel, construction travel and digital nomads. You may also have an opportunity to rent to individuals being temporarily housed by insurance companies due to fires, floods, etc. I'm doing a lot of research right now on MTRs. In the course of doing my research, I've learned that many areas that have had a flood of travel nurses are recruiting for fewer positions. There was a peak because of COVID. Likewise, contract rates and per diems for nurses (I'm using the term nurses generically) are being reduced in many areas or contracts cancelled mid-contract. So just know that there's a lot of volatility, especially in some of the more outlying areas. If you're in an area that caters to major medical centers like Mayo or Cleveland Clinic demand is still strong.