All Forum Posts by: Allen Duan

Hi Roland!

This is primarily handled through the security deposit. There's no way to guarantee things won't break, there are only ways to protect yourself financially so you can replace those items. So don't leave anything in an MTR that is irreplaceable.

In addition to security deposits, you can also use the AirCover program for Airbnb bookings and third party services like Waivo and Safely that provide mini insurance per booking.

Hi Raghavendra,

Sounds like you just need to wait till your LTR tenants move out to start setting up the property as a MTR. 

One thing you can do right now: create the Furnished Finder listing with unfurnished photos, mention in the description that the property will be furnished soon, and start fielding inquiries and watching the unmatched leads section. This will give you an idea of traveler's budgets and what's in demand in your area.

As far as design and photo recs, connect with those in your market to get referrals from other MTR (and STR) operators. I know some people in the Richmond area who may have referrals for you =) I used to manage a MTR there as well.

Quote from @Corby Goade:

Ugh. Arbitrage is the worst. Still waiting for someone to explain to me how this model truly benefits the property owner. 

If you want to manage STRs, start an STR management business and just do everything on the up and up. If you are offering excellent services, you'll win and your clients will win too.

Hey Corby, what do you not like about arbitrage? It seems like you've had a bad experience. Co-hosting/management is definitely a legit alternative, but rental arbitrage is as well. Just because some do it poorly doesn't mean the business model is flawed.

Some of the benefits to the landlord:
- A tenant lol. Isn't that what all landlords want?
- Having minor maintenance taken care of at no cost 
- Regular cleanings and maintenance so small issues don't become big issues
- A hands off tenant who never bothers the landlord
- A property maintained in new condition because it's in the tenant's interest

I used to do primarily rental arbitrage but shifted to STR/MTR property management. I like this model better but doesn't mean it's the better option for everyone.

Hi Orane! It can definitely work. Whether it'll work depends on the specifics, as usual =)

A few questions to consider:

- What's the MTR demand for the property and market? How much revenue do you expect annually? This factors in both monthly rates and vacancy.

- What are your expenses? Remember you have mostly fixed expenses whether you have a tenant or not. 

- Are you ok with some months where you'll be vacant but have to pay rent still? I've found some operators find this very stresseful. Keep reserves for times like this.

I don't know your market as I'm in SoCal, but @James Hwang is a great NJ MTR resource.

Hi Keegan, I also have 3 kids here in SoCal so I know the struggle! I started my real estate career in my mid 30's, not that early, but I don't believe it's ever too late to make the moves necessary for you and your family.

How much time do you have to invest in real estate? I find time is our most valuable resource, not our cash/capital. With enough time, you can invest in real estate with $0 =) The time question will also help you narrow down the specific strategy to focus on, since there are SO many ways to do real estate. For me, I wanted to do something full time so I've built a property management business for short term and mid term rentals. I had lots of time and little money.

I recently purchased my first STR with a couple partners outside Memphis. I used some of my retirements funds for the capital needed. My past self would have been shocked, but I understand the value of time and money better now and I know that those funds will serve me better in real estate than in my pension. It's a very personal decision though. Just wanted to share my experience =)

Some MTR guests will ask for showings. If you want insurance bookings, those always require a showing beforehand. Find a local person who can help you with this and pay them per showing. A real estate agent would be a great fit as they know how to show homes and have the schedule flexibility. You can also become great referral sources for one another =)

Hi Joshua! Maybe a home gym? Who do you usually rent to? I'd start by thinking of what your tenants want. You can even ask them or do a poll with past tenants. That way you know you're building something the right people want =)

On another note, I just bought a STR in Olive Branch that we're about to launch. I'm looking to connect with others in the Memphis market as we may be getting more properties in the area. Let me know if there's anyway I can help you!

Quote from @Jonathan Greene:

Furnished Finder is what everyone who is crushing MTR is using. There is less tenant vetting by the site, but easy for you, and they have the most guests looking for what MTR offers. And it's price effective per listing.

 I'm going to disagree with you on this one Jonathan (I love everything else you post though!)

Some MTR operators do very well with Furnished Finder. Some get almost zero bookings from the platform. It does depend on the market and property type, but it also comes down most people misunderstanding how to use the platform.

Example for my market in Los Angeles, most tenant's on FF are looking for smaller more affordable spaces. They are individuals or couples typically. We do get bookings for larger homes through the platform, but they are a minority of the total leads coming to us.

We get our MTR bookings from various sources, not in any particular order: Airbnb, Furnished Finder, VRBO, Zillow, relocation companies, corporate bookings, referral companies who send us leads, social media.

What works for you will depend on your property, your market, and the tenant types who would want to rent your MTR. Think about where they are looking for a MTR and get yourself in front of their eyes. Marketing 101 =)

Hi Conner, this is very common with MTRs. Insurance bookings often pay much more than what you can get from typical Airbnb guests.

Yes, use your lease. Is this your first off platform booking? The insurance company sometimes has a lease they want you to use. But get them and the family staying in the home both on the lease since the insurance is paying the rent, but the family is usually responsible for the deposit. And just in case the family stays longer than insurance will pay for.