The Rise Of The Rental-preneur – How To Double Your Rental Income
There are many investors in rental real estate but not all are rental-preneurs. Rental-preneurs are those who have turned a short term rental opportunity into a full blown business, creating a repeatable and consistent system of sourcing and operating an entire portfolio of profitable short term vacation rentals.
Have you ever heard the term “short term rental,” Airbnb, or VRBO (Vacation Rental By Owner)?
What are Airbnb and VRBO? Simply put, these are two popular global websites for people to list, find, and rent lodging. Airbnb has over 1,500,000 listings in 34,000 cities and 190 countries and VRBO over 794,000 listings all over the world. Short term rentals by owners are quickly becoming the popular and preferred way for both business professionals and leisure vacationers alike, to travel.
What is Rental Arbitrage? Let’s start with the bad news: Put simply, if you are renting to long-term tenants, you’re LOSING money! You’re missing out on one of THE greatest investment opportunities that has come to property owners in the last decade.
The good news? We’re going to tell you all about how you can get in on it! There is an underlying market force that makes all of the short term rental market possible. That force is called “rental arbitrage” and it exists in EVERY market. Let’s say you have a nice studio apartment in downtown Boston that costs $3,000 a month. Your apartment is in a prime location with ideal amenities. You then find out that one of your neighbors is listing her own studio on Airbnb and is averaging $300 a night. You do some simple math and realize that if you could rent out your unit for about 10 days of the month, you’d pay for your full months’ rent! What if you could rent out the unit for 27 days a month? That means the rental potential of the unit on Airbnb is about 3X the cost of leasing the unit month to month!
When your achievable daily rental rate is clearly greater than your actual daily rental cost, you have rental arbitrage.
And when the revenue potential of something is significantly more than the cost to acquire it, you have opportunity!
Hundreds of Orlando property owners are leveraging their income with short-term renting of their primary residence (when they go out of town) or they are buying short term rental investment homes. Orlando has become one of the hottest markets for short-term rentals. With tourism skyrocketing, and businesses booming short term rentals are projected to have long-term success!
Things you must learn to be successful include:
• How to find the right property
• How to legally list your property
• How to be sure to get bookings
• Tips on managing/operating your property.
• How to offer a great value
• Look over real life financials
• and much more...
Reprinted by Permission. Visit www.duncanwierman.com