Mid Term Rental for Travel Nurses

[Tuan Huynh]

Hello all!

I am looking into investing in properties dedicated to travel nurses.  I live in California and travel nurses get paid very well here.  I am looking for some advice or recommendation and would really appreciate your input.  If you are already in the mid term rental market then I would love to connect with you.  Based on my research, Los Angeles, Fresno, San Diego, and San Francisco are some of the top markets for travel nurses.   If you are in these markets, please contribute in this thread.

Thank you!

[Marshall Leipprandt]

@Tuan Huynh I own a property in LA but have used it as an LTR. I recently stayed in an MTR in the South Bay area in LA and demand there is strong but price points are super high both for property values and nightly rates. I met some other MTR tenants near me...one from Germany doing a 3 month training for his company, and another who was just "testing" out living in LA as opposed to their hometown in San Diego. Are you set on hosting travel nurses only? I ask because people stay for 30+ nights for all sorts of reasons...just know that travel nurses are not your only target audience in these major cities. I would say that as long as you are close to major hospitals, universities, company headquarters, airports, tourist attractions, or beaches, you'll generally be pretty safe in getting your desired return. At least for LA, SF, and SD, the whole city just about falls into those categories in some regard unless you are way out in newly developed suburbs or something.

In my time around LA, there are definitely some places I would avoid and some places I would prefer to own an MTR. Just about everywhere will have 30+ day minimums which fits your goal anyway, but there may be some that allow for shorter stays even. 

[Jack Tulloch]

Hey Tuan - I think MTR's present a great opportunity for investors. Check out this recent article posted discussing the mid term rental investing strategy! 

Why Everyone is Speaking About the Medium-Term Rental Strategy

[Tuan Huynh]

Quote from @Marshall Leipprandt:

@Tuan Huynh I own a property in LA but have used it as an LTR. I recently stayed in an MTR in the South Bay area in LA and demand there is strong but price points are super high both for property values and nightly rates. I met some other MTR tenants near me...one from Germany doing a 3 month training for his company, and another who was just "testing" out living in LA as opposed to their hometown in San Diego. Are you set on hosting travel nurses only? I ask because people stay for 30+ nights for all sorts of reasons...just know that travel nurses are not your only target audience in these major cities. I would say that as long as you are close to major hospitals, universities, company headquarters, airports, tourist attractions, or beaches, you'll generally be pretty safe in getting your desired return. At least for LA, SF, and SD, the whole city just about falls into those categories in some regard unless you are way out in newly developed suburbs or something.

In my time around LA, there are definitely some places I would avoid and some places I would prefer to own an MTR. Just about everywhere will have 30+ day minimums which fits your goal anyway, but there may be some that allow for shorter stays even. 

 That is such great advice and thank you!  You are absolutely right about other travel professionals beside travel nurses.

[Tuan Huynh]

Quote from @Jack Tulloch:

Hey Tuan - I think MTR's present a great opportunity for investors. Check out this recent article posted discussing the mid term rental investing strategy! 

Why Everyone is Speaking About the Medium-Term Rental Strategy

 Jack, thank you for the article.

[Dan Heuschele]

Quote from @Tuan Huynh:

Hello all!

I am looking into investing in properties dedicated to travel nurses.  I live in California and travel nurses get paid very well here.  I am looking for some advice or recommendation and would really appreciate your input.  If you are already in the mid term rental market then I would love to connect with you.  Based on my research, Los Angeles, Fresno, San Diego, and San Francisco are some of the top markets for travel nurses.   If you are in these markets, please contribute in this thread.

Thank you!

 30+ days the tenants have same rights as LTR tenants.  This is relevant because CA is tenant friendly state.  The need to screen tenants is critical, but with mid term tenants it is often (as often as monthly).

We just rejected a 90 day rental on one of our STR units. Tenant did not pass the screening criteria. It was a lot of rent to pass up (especially because it was in our off season that this year looks like will only have ~50% occupancy). Better to lose nearly $10k in rent (~50% of 90 day rent value) than get a risky tenant.

Especially if you self manage, make sure you understand the protections provided mid term renters in CA.

Good luck

[Joshua Messinger]

Hey @Tuan Huynh! 

When looking to go the mid-term route, location will be the key factor when going through the acquisition process. Before purchasing, I would make sure to figure out your area's vacancy rate and figure out what the largest corporations are that offer housing to their employees are. This way before you even acquire your property you already will have a general idea of who you will need to make relationships and how you will need to position yourself to see success. 

I hope this helps and please feel free to reach out if you need any more help! 

-

Josh 

[Twana Rasoul]

@Tuan Huynh I have several units that I medium term rent to travel nurses/doctors here in San Diego and in process of renovating and converting yet another...I personally love it...I thought I'd naturally have more vacancy than a long term rental but so far in this first year i've been trying this out, no vacancy yet.

[Jack Mawer]

I think your head is in a great spot - midterm rentals are a great happy medium between STRs and LTRs and should provide you with enhanced cash flow!

[Joshua J Cawthorn]

Quote from @Dan Heuschele:

Quote from @Tuan Huynh:

Hello all!

I am looking into investing in properties dedicated to travel nurses.  I live in California and travel nurses get paid very well here.  I am looking for some advice or recommendation and would really appreciate your input.  If you are already in the mid term rental market then I would love to connect with you.  Based on my research, Los Angeles, Fresno, San Diego, and San Francisco are some of the top markets for travel nurses.   If you are in these markets, please contribute in this thread.

Thank you!

 30+ days the tenants have same rights as LTR tenants.  This is relevant because CA is tenant friendly state.  The need to screen tenants is critical, but with mid term tenants it is often (as often as monthly).

We just rejected a 90 day rental on one of our STR units. Tenant did not pass the screening criteria. It was a lot of rent to pass up (especially because it was in our off season that this year looks like will only have ~50% occupancy). Better to lose nearly $10k in rent (~50% of 90 day rent value) than get a risky tenant.

Especially if you self manage, make sure you understand the protections provided mid term renters in CA.

Good luck

 Hey Dan,

Do you mind sharing for what reason(s) you disqualified the potential tenant? I find tenant screening strategy to be enormously valuable information. Thanks!

[Dan Heuschele]

Quote from @Joshua J Cawthorn:

Quote from @Dan Heuschele:

Quote from @Tuan Huynh:

Hello all!

I am looking into investing in properties dedicated to travel nurses.  I live in California and travel nurses get paid very well here.  I am looking for some advice or recommendation and would really appreciate your input.  If you are already in the mid term rental market then I would love to connect with you.  Based on my research, Los Angeles, Fresno, San Diego, and San Francisco are some of the top markets for travel nurses.   If you are in these markets, please contribute in this thread.

Thank you!

 30+ days the tenants have same rights as LTR tenants.  This is relevant because CA is tenant friendly state.  The need to screen tenants is critical, but with mid term tenants it is often (as often as monthly).

We just rejected a 90 day rental on one of our STR units. Tenant did not pass the screening criteria. It was a lot of rent to pass up (especially because it was in our off season that this year looks like will only have ~50% occupancy). Better to lose nearly $10k in rent (~50% of 90 day rent value) than get a risky tenant.

Especially if you self manage, make sure you understand the protections provided mid term renters in CA.

Good luck

 Hey Dan,

Do you mind sharing for what reason(s) you disqualified the potential tenant? I find tenant screening strategy to be enormously valuable information. Thanks!

 I would, but our STRs use a PM.  We self manage the LTRs.   The tenant did not pass our PM’s screening.  

It was a little disappointing as we were excited to see a 3 month booking on an STR that had recent change of PM and just recently re-entered the STR market after being off the STR market for 3 months. More excited also because it was mid January to mid April which is not our prime season.

This unit is still ramping up toward the occupancy rate we had with our previous PM prior to have been taken down for a refresh.  It likely will only achieve ~50% occupancy for this period.  So rejecting that booking will likely result in lost rent.

Better to lose some rent than to have a significant issue with a tenant that would have the protections of a long term renter.   

[Tuan Huynh]

Quote from @Joshua Messinger:

Hey @Tuan Huynh! 

When looking to go the mid-term route, location will be the key factor when going through the acquisition process. Before purchasing, I would make sure to figure out your area's vacancy rate and figure out what the largest corporations are that offer housing to their employees are. This way before you even acquire your property you already will have a general idea of who you will need to make relationships and how you will need to position yourself to see success. 

I hope this helps and please feel free to reach out if you need any more help! 

-

 Hi Joshua,

Thank you for the great advice.  It is indeed a very good idea to make sure there are other industry, besides hospital, that house their employee.  Can you recommend some sites where I can get some of those datas?

[Tuan Huynh]

Quote from @Jack Mawer:

I think your head is in a great spot - midterm rentals are a great happy medium between STRs and LTRs and should provide you with enhanced cash flow!

 Thank you for your input.

[Tuan Huynh]

Quote from @Twana Rasoul:

@Tuan Huynh I have several units that I medium term rent to travel nurses/doctors here in San Diego and in process of renovating and converting yet another...I personally love it...I thought I'd naturally have more vacancy than a long term rental but so far in this first year i've been trying this out, no vacancy yet.

 Hello Twana,

Thank you for your reply. I read that San Diego is one of the top location where traveling nurses are needed. Los Angeles, San Francisco, and Fresno are two other great cities for traveling nurses. I am excited to get m MTR started. My LTR tenant is moving out soon and I will be furnishing my ADU for mid term.

Question: How many bedrooms are your units?  What is the sweet spot? Pet friendly?

[Travis Beck]

Hey Tuan,

Travis Beck here. Have some MDR in Fresno and very happy with them. I’m also an agent in the area so anything I can do for you let me know. 

[Twana Rasoul]

@Tuan Huynh San Diego is certainly a great place for it....I have a combination of 1 bedroom and 2 bedroom units that I use for mid term rentals and I do allow pets...kind of difficult not to.

[Conner Olsen]

Quote from @Tuan Huynh:

Hello all!

I am looking into investing in properties dedicated to travel nurses.  I live in California and travel nurses get paid very well here.  I am looking for some advice or recommendation and would really appreciate your input.  If you are already in the mid term rental market then I would love to connect with you.  Based on my research, Los Angeles, Fresno, San Diego, and San Francisco are some of the top markets for travel nurses.   If you are in these markets, please contribute in this thread.

Thank you!

 In LA you'll have a lot of demand from people outside of travelling nurses. They do get paid well but I have found I make more from other clients than I would from traveling nurses.

[Tuan Huynh]

Quote from @Conner Olsen:

Quote from @Tuan Huynh:

Hello all!

I am looking into investing in properties dedicated to travel nurses.  I live in California and travel nurses get paid very well here.  I am looking for some advice or recommendation and would really appreciate your input.  If you are already in the mid term rental market then I would love to connect with you.  Based on my research, Los Angeles, Fresno, San Diego, and San Francisco are some of the top markets for travel nurses.   If you are in these markets, please contribute in this thread.

Thank you!

 In LA you'll have a lot of demand from people outside of travelling nurses. They do get paid well but I have found I make more from other clients than I would from traveling nurses.

 What types of clients are you referring to?

[Conner Olsen]

Quote from @Tuan Huynh:

Quote from @Conner Olsen:

Quote from @Tuan Huynh:

Hello all!

I am looking into investing in properties dedicated to travel nurses.  I live in California and travel nurses get paid very well here.  I am looking for some advice or recommendation and would really appreciate your input.  If you are already in the mid term rental market then I would love to connect with you.  Based on my research, Los Angeles, Fresno, San Diego, and San Francisco are some of the top markets for travel nurses.   If you are in these markets, please contribute in this thread.

Thank you!

 In LA you'll have a lot of demand from people outside of travelling nurses. They do get paid well but I have found I make more from other clients than I would from traveling nurses.

 What types of clients are you referring to?

 In my experience there's 4 types of clients for MTR:

1. Traveling professionals: Nurses, business people, interns
2. Relocations: Just moved to the area, need a place to stay before they establish roots
3. Digital Nomads: Work from home and traveling
4. Temporary displacement: Home flooded, remodeled, etc.

I've had 10% for group 1, 60% for group 2, 25%  for group 3, 5% for group 4. In my experience, group 1 has the lowest rent and I've heard group 4 has the highest. I'm currently trying to make relationships to switch over to group 4.

[Himanshu Singh]

I am in Fresno and looking to connect with anyone doing MTR for travel nurses here. 

The market here seems to have pretty solid fundamentals for MTR/Travel nurses. 

[Tuan Huynh]

Quote from @Himanshu Singh:

I am in Fresno and looking to connect with anyone doing MTR for travel nurses here. 

The market here seems to have pretty solid fundamentals for MTR/Travel nurses. 

 Hello,

I DM you

[Leona Usaty]

Quote from @Tuan Huynh:

Hello all!

I am looking into investing in properties dedicated to travel nurses.  I live in California and travel nurses get paid very well here.  I am looking for some advice or recommendation and would really appreciate your input.  If you are already in the mid term rental market then I would love to connect with you.  Based on my research, Los Angeles, Fresno, San Diego, and San Francisco are some of the top markets for travel nurses.   If you are in these markets, please contribute in this thread.

Thank you!

Hey, Tuan, I will be happy to share with you the market analysis for these areas to make an informed decision,
Leona 

[Nicholas Ardakani]

Quote from @Twana Rasoul:

@Tuan Huynh I have several units that I medium term rent to travel nurses/doctors here in San Diego and in process of renovating and converting yet another...I personally love it...I thought I'd naturally have more vacancy than a long term rental but so far in this first year i've been trying this out, no vacancy yet.

 That's great! I'm also looking at San Diego for MTR's. What are your thoughts on MTR's in downtown areas like East Village and how have you gone about estimating demand / vacancy? 

[Twana Rasoul]

@Nicholas Ardakani I'm happy to share the exact numbers I've been getting on a couple of units right outside of downtown San Diego and just got 2 more units there up and running as MTRs this month. Feel free to reach out.

[Murad Clark]

Very informative. Thanks a lot.

[Ben Scott]

We own two properties that we've shifted from Air BNB to medium term rentals for traveling nurses. We've been having success on Furnished Finders.