Real Estate Secrets: 4 Things to Know About Short-Term Rentals for 2022
Short-term rentals can be a cash flow cow, just waiting for the right individuals to take the risk and tap in.
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It's no secret that short-term rentals have exploded with increasing demand. And for those with their pulse on the market, they have already cashed in. The short-term rental business – think AirBNB, VRBO, etc. – is a cash flow cow, just waiting for the right individuals to take the risk and tap in. But is there really that much of a risk?
Despite the millionaires who have mastered the short-term rental game, it's still fair play for those who want to dive right into the benefits of managing real estate, and possibly profiting upwards of six figures or more by learning the ropes – and did we mention, without actually having to own any real estate or properties?
If you're ready to make your move, here are four secrets that can help make you short-term rental royalty in no time. Tap into these tips and strategies today to stand alongside the many who we've coined as "BNB Millionaires", who always rent out, but never tell. Read on for some of their secrets.
1. Formalize your short-term venture.
Ditch the dollar signs and think like a millionaire. Every profitable venture has a formal business structure and plan. So whether you're in this for keeps or just for play, creating an LLC, S-Corporation, C-Corporation, and obtaining an Employee Identification Number (EIN), is key. Grant yourself some extra bonus points for publishing a professional website, and snagging an email and phone number for your new short term rental business.
Taking the time to formalize and legalize your business on the onset, will open up the doors to possible discussions with apartment complexes, multi-unit real estate properties, corporate leases and even for obtaining business credit. Walk like a business. Talk like a business. Act like a business. Be the business.
2. Find the perfect property and location.
Securing the perfect (and profitable) property is one of the major keys to short-term rental success, but there's a catch: it's not often about the sparkling property near the beach, or by the lake, or just off the shore of a coveted island. It's time to think simply and tactically.
Short-term rental successes have stemmed from ordinary (often overlooked) real estate properties, spanning single rooms, condos, pool houses, guests houses, and even Windstreams. Narrow in on a property that has attractive amenities, and then find a location that is convenient to you – that affords the opportunity for your new business to grow. Begin by lasering in on the property owners in your targeted area that are a match with your desired property type, and get ready to pitch them about what you'll offer if they lease their property with you, in addition to how you differ from traditional management companies.
Acquire your properties from private sellers, tired landlords or homeowners willing to lease their property.
3. Consider corporate leases.
Once you gain momentum securing and listing these properties on sites like AirBNB, VRBO, etc., begin to consider corporate leases, which can vastly increase your income and portfolio. These type of leases could be apartments, multi-units, or other properties in your business' name. As stated before, formalizing your business is essential prior to seeking out corporate leases for your short term rental gain. (See #1 – do not pass go, and do not collect $200…)
4. Engage with trusted partners.
The glue that cements any short-term rental business is the acquisition of trusted partners. These central figures afford you the ability to grow, expand, and scale as efficiently and professionally as possible. Trusted partners can range from your cleaning company to your maintenance individuals, down to your customer service representative.
As you begin to lease more properties, your trusted partners will be the foundation you'll need to service the guests in your properties, and to keep things running smoothly in your absence, as you navigate from property to property. Begin engaging and vetting these critical team members today.
There's definitely more than meets the eye to short term rental success, but with the implementation of the above, along with other standard day-to-day tasks and operations, you'll be on your way to an influx of cash – and maybe even BNB Millionaire status – in no time.