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

[Bruce Woodruff]

Why are you wanting to switch? If you're running your STR correctly, you should be making waaay more money, right? And you're in this for the money....

[Gururaj Iyer]

The only reason of switching from a STR is if the LTR & the mid term rentals - like traveling nurses etc provide a higher cashflow. The STR which I am contemplating to switch is in a big ski town & does cash flow well.. trying to max it up & not worry about rising expenses in maintainence , read the other day about traveling nurses needing individual rooms & with a huge dearth in inventory for longer term accommodation - there possibly could be a more steadier & higher income stream

[Gururaj Iyer]

oh and also makes forecasts and projections much easier for me , the property in question also has an acre of buildable land which I intend to have construction done.. with the house on a STR/Airbnb mode - it would be a nuisance to have construction going on.. so thinking long term of cash flowing and investing that money on getting another unit built..

[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.

[Gururaj Iyer]

Quote from @Bonnie Low:

Thank you for your response ! I agree STRs are higher ...any idea where most of these digital nomads and MTR needs can be analyzed?  Furnished Finder is one which I am aware of but not sure if there are more other niche sites or if folks just rely on Zillow ? 

my STR in question is in a popular Ski town .

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.

[Joey Banasihan]

@Gururaj Iyer I am a bit late on this post but have you converted anything over to MTR/LTR yet? I agree a lot with Bonnie, MTR can be a great solution if problems arise with occupancy rates, local law changes, etc. Furnish Finder is the platform I use to host my MTR and I also use that plus RentOmeter.com to get a better understanding around monthly market rates.  RentOmeter does an okay job providing local rental market rates but typically unfurnished, I dive deep into market analysis/competition within AirBnB and Furnish Finder to find similar furnished properties with similar amenities to better understand how to identify my price point. Happy to provide more information or happy to help analyze pricing strategies if you ever want to hop on a call or via DM. Let me know and hope business continues to be prosperous for you!