Episode 106: The Battle Between Long and Short Term Rentals with Jacob Mueller
Summary
Housing is housing, right? Having a long-term tenant can't be THAT different than having a short-term guest, right?.... wrong. My guest today has both long-and short-term occupants, and we discuss the strategies, the costs, and the thought process behind housing different term length folks. Founder of short-term rental software Renjoy, Jacob Mueller, joins me on today's show, to tackle which option works best for you?
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This Week’s Blog Post:
Introduction to Rental Types
Welcome to another episode of "My Life As A Landlord." I'm your host, Dr. Jennifer Salisbury, and today we're diving into the intriguing world of rental properties. Many of you have been curious about the differences between short-term and long-term rentals, as well as the nuances of managing these properties. Whether you're self-managing or using property management services, understanding these differences is crucial. Today, we have Jacob Mueller with us, a seasoned entrepreneur who has transitioned from creating digital marketing solutions to developing property management software for short-term rentals.
Entrepreneurial Journey into Real Estate
Jacob's journey into real estate is as unique as it is inspiring. Starting with a college project that turned into a real business, he sold his first company and gradually rediscovered his interest in real estate during the 2008 financial crisis. Jacob's experiences with property foreclosures in Florida provided him with a hands-on education in real estate investment. This background has equipped him with a robust understanding of the market, leading him to his current focus on short-term rental properties.
Defining Rentals: More Than Just Length of Stay
In our discussion, Jacob elaborates on how rentals can be categorized beyond the simple binary of short-term versus long-term. He introduces the concept of medium-term rentals and emphasizes the variety within each category, including furnished and unfurnished options. This broader perspective is essential for landlords to consider when planning their rental strategies, as it impacts everything from tenant acquisition to property management.
Operational Differences Between Rental Types
Transitioning from long-term to short-term rentals involves significant changes in management style and expectations. Jacob outlines the key operational differences, noting that short-term rentals generally incur higher management fees and operational costs due to increased tenant turnover and the need for amenities like utilities and consumables. These factors are crucial for potential landlords to consider, as they significantly affect the profitability and workload of managing short-term rentals.
Strategic Considerations for New Landlords
For those new to the landlord game or considering switching rental strategies, understanding the financial and operational implications is vital. Jacob provides insights into the initial costs associated with setting up a short-term rental, including furnishing and equipping the property to meet guest expectations. He also discusses the importance of location in managing these properties effectively and efficiently.
Conclusion and Looking Forward
As we wrap up today's discussion, it's clear that the choice between long-term and short-term rentals depends on individual goals, resources, and personal circumstances. The real estate market offers diverse opportunities, and navigating it successfully requires education, strategic planning, and sometimes, a bit of entrepreneurial spirit. Whether you're inheriting properties, considering a market entry, or shifting your business model, understanding these fundamentals is key to making informed decisions.
Join us next week as we continue to explore strategic real estate investing and provide you with the tools you need to succeed in this dynamic field. Remember, being a successful landlord doesn't just happen; it's about continuous learning and adaptation. Thanks for tuning in, and I look forward to our next discussion on "My Life As A Landlord."