The real estate market is constantly evolving.
Fortunately, there are opportunities just about anywhere you look. Today, it is easy to establish connections that help you learn from like-minded people from all over the country. Learning from others makes it even easier to find the very best in yourself.
You can challenge your beliefs and overcome your fears to transform your business. This is what Avery Carl does.
Reading how he built her rental property empire is inspiring, so much so that it will inspire you to scale your short-term rental business using some of her tips.
According to her, she got into the rental market by accident. Before she entered the real estate world, Avery was a marketing manager for several major record labels in LA and New York. She and her husband, Luke, moved to Nashville from NYC in 2013.
While looking for a home, the couple came across a house in an appreciating area. She purchased the rental as income for her kids’ college funds, while they settled out in the country.
Today, Avery Carl is an experienced short-term rental and real estate investor who has increased her portfolio in a short time. Her business started from one rental property to over 32 short-term rentals and various long-term rentals in several states. She is one of the top agents in Tennessee, grossing more than $25 million within her first full year as a real estate marketer. How did she do it and what goes into empire properties management?
Enter Short-Term Rentals
The first short-term rental was in the Smoky Mountains.
Since the 70s, anyone looking to vacation in the area would usually look for private properties as opposed to hotels. This presented itself with an opportunity to offer guests rental properties overnight. Plus, the little presence of hotels in the area meant she did not have to worry about regulations.
Eventually, Avery and Luke gained five more properties in the same area using cash flow from each of their properties.
To get close to their financial goals, she listed her properties on platforms such as Airbnb and VRBO. This strategy paid off as they could now optimize their occupancy and rates while automating some mundane and repetitive tasks.
A Look at Investment Strategy
As she continued running and optimizing her first few properties, she saw in technology an opportunity in short-term rental properties that can generate a high cash flow and financial return compared to the traditional long-term rental.
This strategy is a key component of how to build a rental property empire ( http://theshorttermshop.com/real-estate-empire/). Because it allowed her to scale and get to her financial goals faster.
The first step involves understanding the process. Simply launching and then proceeding can quickly drain you, especially when running several properties.
The key strategies for building a real estate empire from short-term rentals are:
Research the market
As you start, look for properties in true vacation rental areas. Such markets are those places where people go for vacations. They are locations where people will rent condos and single-family units overnight.
The municipalities of “mature” markets figured out how they can monetize short-term rentals decades ago. This means that laws are constant and you don’t have to worry about ad hoc changes occurring.
Use the snowball effect
Once you find an ideal short-term rental, you can use the cash flow to invest in long-term rentals in markets that are unfavorable for the short-terms.
The cash flow you get from listing your properties on Airbnb and other similar platforms help purchase more rentals—creating the snowball effect.
Learn how to manage your property even from far
The best part about investing in rental properties is that you do not have to live on the same street as your rentals.
However, if something breaks and requires fixing in the middle of the night, make a phone call. What you need is a good handyperson, an excellent cleaner, and your smartphone! The rest is as easy as handling text messages, and you move on.
Connect with property owners on the platforms you are using and ask them if they will share their local contacts for specific tasks. While some property owners might be unwilling, others will be nice enough to help you.
The more contacts you get, the bigger your network grows. For example, if your handyperson doesn’t work out, your cleaner may know somebody else. Eventually, you will have a network of local people you can call on in case you need something done at your short-term rental property.
Automate rental tasks
The short-term rental space is easier today thanks to technology so you can keep up with the expectations of customers for a smooth experience.
A short-term rental often has a high guest turnover. Streamlining the booking process via automation offers maximum experience while ensuring a positive experience for tenants. Use technology to streamline everything, including:
- Having an online booking process
- Guest reviews
- Guest contracts
- Automating the check-in process
- Installing keyless-entry systems
- Maintaining constant communication with your housekeeping and maintenance teams
- Processing of payments
- Remitting occupancy tax
In the short-term rental business, word-of-mouth is critical. Your guests will leave comments about their experiences for friends, family, and other potential guests to read.
According to this build a rental property empire PDF, the quality and quantity of reviews shared by your guests is an indicator of whether short-term rental platforms assign you bad or good scores for a specific property, influencing the choices of guests. So, make sure your guests leave the best possible reviews to encourage others to hit the book now button.
Bonus tip: Photographs
Great photography is an excellent tool for reducing vacancy periods. Invest in a good camera or even hire the services of a professional photographer.
Over 60 percent of people online are more likely to click on a local listing if it has an image. So use photography to showcase the unique selling points of your short-term rental.
Short-term rentals are not the ideal choice for every property or everyone. Understanding how Avery built her rental property empire shows that when you do it right, short-term rentals are incredibly lucrative for growing your real estate portfolio.
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