how are your midwest short term rentals performing? better than medium term?

Question

we have investors who are trying to decide between long term rentals on new builds and short term rentals on new builds in midwest markets in urban adjacent core neighborhoods. how are yours performing? would love some commentary from peer cities in the midwest especially property managers or STR managers. I'm in Columbus Ohio. this mostly applies to 2-4 units used as Airbnb properties within 2 miles of urban core

Austin Delk · Answer

Hello Robert. We have a 3-year lease with a tenant who is doing the rental arbitrage strategy as an AirBnB and it appears they are doing quite well.

The property location is two streets away from Nationwide Children's Hospital and the rent we charge is $1,200. Due to new reporting requirements from CRISP I am able to see what the AirBnB is making and in January he made $3,550 gross. I'd say they are doing quite well haha. This is one month of actuals, so I am curious to see in the coming months how well it performs compared to what I thought the market rate for rent was (2 years ago).

Hope that provides some insight/is interesting because I thought it was!

Jeremy Jareckyj · Answer

I have a few friends in Columbus. most do MTR now. STR demand wasn't reliable enough. obviously this is a bit generic anwser but I think Columbus as a whole is a more reliable MTR market.

Andrew Steffens · Answer

AirDNA has tools where you can explore the metrics on individual cities down to single zip codes.

Michael Baum · Answer

Hey @Robert Ellis, so I have no performance data for you on this topic, but you can try and scour AirBNB and VRBO in the areas you are building and see what other homes are bringing in. Nightly rates, occupancy and amenities.

First I would make sure where you are building allows STRs with no or few restrictions. No HOA's.

If you are building new properties and the area supports STRs, maybe build to suit STRs. That might make them more attractive to investors.

how are your midwest short term rentals performing? better than medium term?

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