All Forum Posts by: Miguel Del Mazo

We don't require cleanings during our residents' stays, but we will offer them the contact info for our cleaners in case they'd like to arrange for a cleaning. It's rare that some one ask for the service, though.

Our cleaning price is based around what our cleaners charge for a "deep clean". We make it clear that this is not a revenue source for us as 100% goes to the cleaners, and no one has ever balked at the charge.

I think most of the fear over charging an appropriate amount for a cleaning stems from owners/operators not wanting to face the backlash that STR operators get for their cleaning fees. STR operators have shifted to lowering nightly rates to increase occupancy rates, but they'll charge exorbitant cleaning fees to make up for the revenue in a "hide the ball" sort of way. Travelers are understandably upset at a $1000 cleaning fee for a 2 night booking, so Airbnb responded by making fees more transparent.

MTR operators don't currently seem to be doing that. After a 3 month stay, our residents haven't been upset (or suprised...it was in the lease, after all) that a $250-450 dollar cleaning was needed to get a unit ready for the next resident.

Amazon's Eero 6 mesh Wi-Fi is a reasonably priced, easy to set up system that will connect once to the hardware you get from your Internet provider. Then you'll place additional units throughout the multi-family property to make sure there is good signal everywhere.

Lastly, you will assign each individual Eero to a network you create which will allow residents to only connect to the Wi-Fi network they are assigned at move in.

I'm not a tech (or a sports) guy, but I'll try and give an analogy.

One Eero is connected at home base straight into the high speed Internet connection given by Comcast (in your case). First, second and third base all have their own Eero that connect back into home base wirelessly. Each of those Eeros have their own network name and password, so only the folks at first base can log in at first base and so on.

At any base, you can even have multiple Eeros that are all part of the same network if the space is large enough to need more coverage.

Amazon puts their Eeros on sale significantly during Prime Day sales, so it's a good time to stock up.

With this system, you only need one connection with your Internet provider, but make sure it's the fastest one you can get.

Words like "contract grade", "performance weave" or "high rub count" can be buzzwords for what you're looking for.

60+% of our bookings bring pets, including cats sometimes, so not allowing pets would increase our vacancies significantly.

Waivo as a psuedo-insurance company, pet rents and non-refundable pet deposits, and photos just prior to a move-in known to be bringing cats can all help you sleep better at night while allowing four-legged residents.

As an aside, ozone machines are cheap on Amazon, and running one post-pet visit can be a nice plus for the next resident.

 I agree with Allen (as usual, the guy is smart and experienced) that you are better off looking at comps to price for this specific relocation claim. It's OK to ask for a robust rent, but trying to punish an insurance company with an obscenely high request will likely just lead to them passing you over. 

I do think using a multiplier is a good way to start pricing a potential MTR. 
You aren't locked into using that multiplier forever, of course. Adjust up as you stay occupied and down if you are seeing reasons why you can't demand higher rent. 

 My wife and I have 6 units in a Southern city about 1/5th the size of Memphis, and we have hosted successfully several times insurance relocation claims over the last 4 years.

However, these claims are sporadic, and they can't be relied upon as the bread and butter for a unit, especially a singleton. Many of the leads we've been able to house came through furnishedfinder or Airbnb, rather than the ALE-type site. We've also been able to attract attention because of one unit, but then placed the family at a different unit of ours.

Gross estimate, 10% of our days are booked by insurance relocation claims, but we do not hold out for them. We treat them as any other lead source, and we don't crisis-pump our expected rent just because the payor is an insurance company.

 I agree. There are a growing number of Avatars who need fully-furnished, monthly rentals, and traveling work crews are our favorite for larger units. 

Imagine if you are a construction company making a pretty good monthly income from the traveling crew, you want to keep them happy and working. A 5 man crew is going to need at least 3, but more likely 5, hotel rooms. At a modest $100 per bedroom, per night, that is going to be a $9k to 15k a month expense.

It makes a lot more sense to rent your 5/3 with a kitchen at 7k a month. The crew is happier and better fed for less money. The tricky part is getting leads to fill the space.

In addition to furnishedfinder and Airbnb, you'll want to use LinkedIn to reach out directly to companies working in your area (Chatgpt and perplexity can tell you which companies' project managers to target).

Obviously, run the numbers yourself, but don't feel that if you don't have a property good for nurses that you can't do the MTR strategy.

Insurance relocations are a wonderful avatar to serve.

Unfortunately, unlike students, they don't follow a predictable cycle of when they will appear.

Definitely list on the sites @Allen Duan mentioned.

Be prepared to respond quickly and professionally with an attitude of serving both the relocation company and the displaced family. Speed wins, and professionalism secures relocation bookings.

As you build your network, look for people who have access to housing on a continual basis that need residents. With a single unit, you aren't likely to have a vacancy when they insurance relocation company needs it, but if you have the connection to an empty house, you still provide value. Value gets paid.

Best of luck!

 100%. Most property management software will include access to relatively generic, state-specific leases, but I highly recommend you take whatever lease you're starting with to an attorney, especially if you are operating out of California. At the end of the day, the lease is king when it comes to disputes between tenants and landlords, and modest amount of money upfront can produce a lot of savings down the line. 

Contracts are not just there for when things are going well, but also for when relationships are breaking apart. 

 Like Allen, we prioritize the comfort of the existing guest for a variety of reasons. First and foremost, it's the right thing to do, but also because financially, it's also more advantageous. 

Our number one lead source to fill an upcoming vacancy is the current resident. We don't want to do anything to jeopardize that relationship. Ironically, by making sure the existing resident is prioritized *and feels prioritized*, we have the ability to ask for the occasional special consideration (like doing a showing while the unit is occupied). If you are going to ask a resident to allow a showing, definitely start with asking if they have plans to extend. "A bird in the hand is worth two in the bush". 

Due diligence, in general, is the key to smart investing, and this is especially true with regards to HOA-associated investing. Many HOAs are run well with adequate financial buffers to avoid needing to make large assessments, but that is by no means universal. Some communities have restrictions regarding the minimum length of stay and the percentage of the community that can be rented out while others do not. Some communities are welcoming to our preferred avatars, and some are downright hostile.

As such, there is no general advice as to whether these are "good investments" or not. It really is a situation where you'll need to talk with the HOA board members to get a good and clear understanding of what you'd be buying into.

Of course, if it was easy, there wouldn't be any profit in it for you :) Happy Hunting!