Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $9.99/month after trial. Cancel anytime.

    The Short-Term Rental Playbook
    The Short-Term Rental Playbook
    The Short-Term Rental Playbook
    Ebook155 pages2 hours

    The Short-Term Rental Playbook

    By Andy Wen

    ()

    Read preview

    About this ebook

    Do you want to get rich by investing in short-term rentals?

     

    Investing in short-term rentals can change your life, but requires careful planning and management.

     

    In The Short-Term Rental Playbook, author and real estate investor Andy Wen provides a step-by-step guide to successful short-term rental investing including conducting the proper research, managing a profitable short-term rental property, and scaling up your real estate empire.

     

    Learn how to:

    • identify and avoid misleading marketing tactics
    • evaluate revenue, profit, and true cost to make informed decisions
    • create systems and backup plans for practically every scenario because things can, and do, go wrong
    • overcome obstacles to save time, money, and stress
    • employ the WWHRO method to purchase profitable short-term rental properties
    • utilize guest experience ideas to help increase bookings and positive reviews on any platform

     

    Don't miss out on the opportunity to learn from an experienced real estate investor and enhance your chances of success in the short-term rental market.

     

    Read it now.

    LanguageEnglish
    PublisherAndy Wen
    Release dateNov 18, 2022
    ISBN9781999464707
    The Short-Term Rental Playbook

    Read more from Andy Wen

    Related to The Short-Term Rental Playbook

    Related ebooks

    Business For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      The Myth of Passive Real Estate Investing

      Jun 6, 2022

      In my financial planning firm, we focus on serving clients in their 30s to their 50s — and we see firsthand how popular the idea that real estate is a way to get rich (relatively) quick is. That would be fine if real estate was a no-brainer passive-i

      5 min read

    • Article

      Landlord’s Toolkit

      Sep 2, 2020

      Landlord’s Toolkit
      9 min read

    • Article

      Time To Question That Blind Faith

      Mar 31, 2022

      As far as investments go Kiwis have worshipped at the altar of the property gods for a while now. And for the bulk of us, who have started our investment journey in the last 30 years, it’s no wonder. But with all the headwinds facing the market at th

      2 min read

    • Article

      MONEY Talks

      Jan 20, 2020

      MONEY Talks
      3 min read

    • Article

      How To Cashflow Hack In 2022

      Jul 28, 2022

      How To Cashflow Hack In 2022
      2 min read

    • Article

      Build-to-rent Will Cost

      Jun 27, 2019

      Build-to-rent Will Cost
      2 min read

    • Article

      A Decade After The Bubble Burst, House Flipping Is On The Rise

      Apr 17, 2018

      House flipping is at an 11-year high in the U.S. New research shows borrowers with good credit like flippers, and not subprime borrowers, were mainly responsible for the crash. Is another bust coming?

      5 min read

    • Article

      A Risk-Averse Approach to Real Estate Investing

      Mar 22, 2021

      The highest profile professional real estate developers and investors are typically those who have won big or lost big — they made their names taking oversized risks that in some cases paid off handsomely and in other cases crashed and burned. But re

      3 min read

    • Article

      Stand Out In A Sea Of Agents

      Mar 31, 2020

      Stand Out In A Sea Of Agents
      3 min read

    • Article

      A Tax Guide for Investors

      Mar 7, 2019

      For most people, tax time is about as much fun as taking a bath with an electric eel, and taxes on your investments can be particularly confusing and irksome. Nevertheless, if you make wise use of capital losses and gains, you may find that you owe l

      7 min read

    • Article

      When Debt Is Your $2.4m Friend

      May 8, 2019

      Ahh, “Should I pay off my mortgage or invest?” If I had to declare my favourite money management question, this would be it. Why? Because it has the potential to be financially life changing. Life changing? Well, how does more than $2.4 million over

      6 min read

    • Article

      Alternatives To Bank Financing

      Jun 4, 2020

      Alternatives To Bank Financing
      5 min read

    • Article

      How to Make a Million (or More!)

      Apr 4, 2019

      Christina Stembel didn't just bend the traditional business model for flower companies; she snipped it in half. Stembel grew up on a farm in Bremen, Ind. (population 4,500), so it's tempting to say that she founded Farmgirl Flowers to get back to her

      15 min read

    • Article

      Getting The Numbers Right

      Jun 28, 2023

      Being a property investor involves a sound understanding of the numbers that lie behind each property. If we get the numbers wrong, it can spell trouble. And so, our lead story this issue focuses on the importance of getting the numbers right. We com

      1 min read

    • Article

      The Rule Of 72 Can Help You Plan

      Sep 30, 2020

      Many people don’t appreciate the way super compounds, says financial planner Nicole Heales. “When I do projections for people I use the rule of 72, which says if you can make 7% on your money in a super fund it will double every 10 years. And that’s

      1 min read

    Related categories

    Reviews for The Short-Term Rental Playbook

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      The Short-Term Rental Playbook - Andy Wen

      Introduction

      I f it was that easy, everyone would be rich.

      How many times have you heard that before? This statement is usually sprouted by people with zero knowledge about anything related to real estate investments. Some of these folk might even belong to the landlord-hating cult. Others might be well-meaning, but don’t speak from experience. Misguided as some folks’ opinions might be, I don’t blame them. They probably have your best interests at heart and want to protect you from any potential harm.

      Buying a property usually requires capital that runs in the tens of thousands of dollars, or more. This is a significant investment, and it’s natural to have worries and doubts. Perhaps some of these thoughts have crossed your mind:

      Having spent a long time saving up for a down payment, is real estate really the best place to invest my hard-earned money?

      What if, after investing heavily in an investment property, I discover that I hate everything related to real estate investing?

      With no experience, I may unwittingly break landlord or tenant regulations and suffer the full wrath of the law.

      What happens if tenants or guests trash my place so badly, it ends up costing me more than I can afford?

      If any of these reservations and fears resonate with you, let me assure you that you are not alone. Fear can be good, as it stops you from making hasty decisions that might put you in real danger. That being said, risk is one side of the coin and we must weigh up the rewards to see if an investment is worth it.

      The other side of the coin are the potential rewards that await you should you choose to invest in real estate. Some of the things that you can accomplish include creating additional income streams, participating in capital growth of real estate, achieving financial freedom, retiring earlier than you planned, and pursuing your interests. There is no limit to how much you can accomplish. The more you invest in real estate, the greater the potential returns. You can invest in real estate to the levels with which you are comfortable.

      Done safely and correctly, you can change your life, the lives of your loved ones, and open new opportunities you may never have had. I can’t promise you all the riches in the world with zero effort or no risk to your capital. No one can. If you’re looking for some get-rich-quick scheme, then this isn’t the book for you.

      Regardless of whether you plan on owning one, two, or more investment properties, it’s important to set yourself up for long-term success. This means getting the right infrastructure in place and having plans for a wide variety of scenarios. I won’t lie–there’s a lot of work ahead of you, but it’s worth it.

      Let’s dive in.

      Do you know what short-term rentals really means?

      Chapter 1: Short-Term Rentals–What is it?

      S he’s a snake my mother whispered holding my hand as we left our apartment.

      Although a little boy I immediately understood that we should not trust that snake lady, or any stranger for that matter!

      It was one of my earliest childhood memories. My parents and I rented a room in this big apartment block building.

      The other tenants, like us, were never there for a long time. In fact, two weeks would be a long stay in that apartment building.

      I didn’t know it at the time, but this was my first experience of the short-term rental investment strategy–as a guest or short-term tenant. The short-term rental or rentals (STR or STRs) real estate investment strategy goes by many names. More names are invented every day that I probably don’t know.

      Before we get lost in a sea of what you think it means, allow me to summarize it in one sentence what the STR investment strategy really is:

      Renting a property, or part of a property, for a short-term.

      What does short-term mean exactly? Is it one day? One week? One month? One year? One decade? The truth is, it depends. It depends on what the rules and law say when it comes to defining the period or duration of what constitutes short-term. This varies according to location as different towns, cities, and countries all have different rules and laws.

      For our purposes, short-term means a short-term rental agreement that spans, typically, one or a few days to maybe a few weeks. Let’s say, generally, less than eight weeks or approximately two months. Short-term, to me, is not discussed in terms of months and definitely not in terms of years regarding the duration of the rental agreement. The legal definition of short-term depends on where you’re based and there is usually less legal protection for individuals who rent on a short-term basis compared to those who rent for the long term.

      Ultimately, you have a property, or part of a property, that you rent out on a short-term basis. You either own or have the legal right to let this place to potential customers who only want to rent for a few days or weeks. Tenants, in this case, are sometimes also referred to as lodgers or guests.

      Note: Exact terminology will vary depending on your location. It’s like British vs American English; chips may not mean the same thing in the UK or in the USA. Just so you know, chips in the UK means potato or French fries whilst chips in the USA means crisps to the brits¹ – don’t ask me why, this is simply how things are. This is similar for STR terminology such as guests, lodgers, tenants, and so on. It depends on where you are and what terminology applies. I’ll use these terms interchangeably but make sure you’re aware of the legal terminology for your specific location.

      Now that we’ve defined what a STR is, here are some names that this real estate investment strategy goes by:

      AirBnB rentals

      Vacation rentals

      Holiday rentals

      Serviced accommodation

      House hacking

      Naturally, this list is ever-growing and there are more marketing tactics to suck in potential investors to the attractiveness of the STRs’ strategy. How else will people sell courses and services to investors if the strategy name (short-term rentals) sounds boring? If you can think of other names for this strategy, drop me an email ([email protected]) and let me know.

      Aside from all the fancy names assigned to this strategy, I’m sure you know more than you think you do. We’ve probably all experienced staying in a STR unit at some point in our lives…unless you’ve never been away and have lived in exactly the same home your entire life (which I think is highly unlikely). If you’ve never travelled or lived away from home for a short span of time, I’m both impressed and shocked.

      Hopefully, you won’t be surprised by some of these examples of STRs that most us will have some experience with:

      Hotels

      Bed and Breakfasts

      Guest Houses

      Staying at an extended family or a friend’s place for a few nights

      Motels

      These should be fairly self-explanatory. For example, if you’ve booked a vacation, you may have booked short-term accommodation, such as a hotel or bed and breakfast, as part of the holiday package through a tourism agency–or directly booking accommodation if you’re one of those folks who likes to control every aspect of your vacation.

      Another form of short-term accommodation that is well known is renting to lodgers and guests. Some call this house hacking but essentially you have a property that you rent out one or more rooms to individuals and there may be some shared-space arrangement where they have access to the kitchen, living room, and so on.

      These are some forms that STR can take. You need to find an approach that you’re comfortable with and where the risks and rewards are worth what it will cost you. We’ll discuss the costs shortly, but let’s get down to the crux of it. When it comes to STRs, you’re probably thinking:

      Is there enough profit or demand for me to enter the STR market?

      Chapter 2: Demand & Profit: The Big Picture

      For any product or service that a business wants to sell, the business needs to pay attention to both demand and profit. This is not an either-or requirement. A lack of demand in a product or service, no matter how great the profit potential, is pretty meaningless. The product and service you’re providing is short-term accommodation and anything that you may wish to include, such as periodic cleaning, new sheets, towels, coffees, teas, and so on.

      You can, of course, always find business and investment models that have minimal demand but produce massive profits for the few sales that do happen. An example of this might be selling high-end paintings or antiques by auctioneers–one sale can bring in millions of dollars in commissions. This may work for some business models, but not all.

      With STRs, we need more than the proverbial one-sale-a-year gig. Depending on the location, you’re looking at either year-long demand, where you can expect regular bookings throughout the year, or seasonal demand, where the bulk of your bookings will occur for certain seasons of the year.

      In addition to having enough demand, sufficient profit is required for this to be a profitable venture.

      Overall Demand for Short-Term Rentals

      Looking at the STR industry as a whole, it’s worth understanding the history of Airbnb to gain some insights into the sheer volume of demand and how this has changed the hotel & tourism industry². Noticing that there was a shortage of hotel-type accommodation, the founders of Airbnb saw an opportunity to stay at different friends’ properties for a few days at a time.

      Sound familiar? Have you wanted to visit a location out of town and struggled to book a hotel at a reasonable price? I’ve experienced this more times than I care to remember, and it is very frustrating when there’s nothing available for a suitable price.

      In fact, STR demand has exploded so much that companies such as Airbnb and Booking.com have listed as publicly traded companies on the stock market. For example, Booking.com, owned by Booking Holdings Inc, trades under the ticker symbol BKNG and Airbnb Inc trades under the ticker symbol ABNB; both are listed on the NASDAQ exchange in the USA.

      At a local or specific property-level, the only way to know for certain whether your particular STR is in demand is to put it on the market and see how it performs, along with the rates that you’re able to charge, what the vacancy rate is like, and so on. You may also network with other STR owners and gauge what the demand is like from their perspective. Like any business, just because someone else is making good money does not mean anyone else is, or to what extent. Your results may be better or worse than other STR business owners; nothing is guaranteed.

      Later on, we’ll discuss some of the elements to consider such as where to buy, rental rates, and occupancy rates, as these feed into the subject of demand for a specific STR property. For now, have no doubt that there’s definitely general demand for STRs that caters to a whole universe of people who only want to stay for a short time and have zero

      Enjoying the preview?
      Page 1 of 1