How to Analyze a market for Mid-term rental

Question

I just bought four SFH outside San Antonio and the cash flow is minimal but bought them for appreciation and tax benefits.

Before I start marketing them I was consider a the mid-term rental option for one of them. I'm aware of AirDNA for AirBNB data but how do you do market research for mid-term rentals?

Any help would be appreciated.

Bonnie Low · Answer

One of the easiest ways to figure out what's going on in your market is to search Furnished Finder for your particular city. While it used to be targeted just at travel nurses, that's no longer the case. You'll get an idea of how many people are searching for places in your city, what type of unit (entire house, hotel, room) and what the average rate by percentile for each of those is. You'd then want to get more granular and look at the actual properties themselves and search for location, configuration, decor and amenities similar to yours. Look at the total number of listing vs. the number of properties open during your search time frame to give you an idea of demand. You can do the same thing inside of Airbnb by filtering for 30+ day stays. It's a bit tedious, but it gets you familiar with your competition.

Justin Brickman · Answer

I've been very fortunate with awesome bookings and long stays for my midterm furnished rentals here in San Antonio. I try not to pay too much attention to other listings because I've noticed many hosts are more concerned with having a higher occupancy rate than a high price.

Donato Callahan · Answer

I got you bro. Here's an appreciation map of San Antonio. I love investing there and am under contract for 200 units in San Antonio right now.

I use BrightInvestor to check local rents, crime stats, appreciation, renter population, rent growth, demographics, and more before buying a new property to make sure it aligns with my strategy.

For MTRs, you want quiet, close proximity to hubs of traveling professionals, in an area that will see positive rent growth and appreciation.

Charlie Tunstall · Answer

Questions to answer first;

-Based on property locations, what demographic are you targeting for tenants?..corporate travel, insurance claims, medical, divorce, relocation, etc....lot's of options and they affect your ultimate rate.

-Generic rule of thumb is 1.3 to 1.6 X LTR rate, but location and demographics can drive that higher. I transitioned my first LTR to MTR last year. It began at 1.4x but now is running 1.6+x

-Reno finishes and furnishings can also affect rent #'s

Reach out with any other questions..I'm learning as well!

Alyssa Marquez · Answer

For mid-term rentals I'd do more of a research than a traditional rental or Airbnb. I'd start with Furnished Finder and Airbnb and search for furnished 30+ day rentals within proximity of each property. Record the monthly asking rent, bedrooms/bathrooms, furnishings, utilities included, pet policy, amenities, minimum night stay, and quantity of competing inventory.

Then I'd check out the real demand factors near the property. In the San Antonio market, that might be hospitals and medical facilities, military bases, significant employers, universities, construction activity, and transfer or temporary housing. I'd also talk with a few local property managers or furnished rental operators about the tenant types and lease durations they're experiencing.

Next, I'd do three scenarios: typical long-term rental, more conservative MTR, and more aggressive MTR. For the MTR figures I'd add utilities, internet, furnishings, clean/turnover, vacancy, maintenance, lawncare and management if you won't self-manage.

Given that you now have four properties, I actually like the idea of experimenting with one first. Set a trial period, monitor calls, occupancy, the average length of stay, and net income – and then compare this to what that same house would have netted as a traditional long-term rental before making a decision to sell it.

Conner Olsen · Answer

I personally use Pricelabs Market Dashboard. You get all the Airbnb listings in your area, filter by 30+ days and analyze the comps to see what's closest.

Collin Mitchell · Answer

Thanks

Collin Mitchell · Answer

Thanks @charlie

@Charlie Tunstallundefined

How to Analyze a market for Mid-term rental

How to Analyze a market for Mid-term rental

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