Short Term Rentals Strategy

[Kyle Mitchell]

Hi everyone,

I am just beginning to look into the short term rental market and looking into Arizona.  I know it's dependent on multiple factors but what are the cash flows from short term rentals?  I am thinking of purchasing a 2bed/2bath condo and want to get everyones thoughts.  What are the typical costs of furnishing a unit? 

Thanks,

Kyle

[Villy Ellinger]

I agree with @Wendy Schultz that you need to make sure the condo complex allows short-term rentals first off. As for pricing.... it really depends on the market. I don't actually disagree with some of the above posts... they are telling you about their market. You need to figure out yours. Here on the Gulf in FL, pricing is very seasonal. What I charge per week in July is completely different from what I charge the "snow birds" who come for a full month in January and February. You really want to tailor your pricing to the market so look around and see what other similar properties are charging. Exactly the same rule would apply, in my opinion, to how much you spend on furnishing the unit. If all other units in your area that you will compete have, for example, two king sized beds with memory foam mattresses, then you probably have to get that too. On the flip side, don't put "caviar on a burger", if you know what I mean, if no one else is doing it and no one is expecting it. I put commercial-grade sleeper sofas in my units, cuz it's the standard here. I would suggest that you get on Airbnb, VRBO or whatever other site you will be using and check out the pricing and furnishing set up of your direct competitors in the area.