What are Short –Term Rentals

•A short-term residential rental host (“host”) is a person that receives rent in exchange for providing short-term (less than 30 days) accommodations in a residential structure.

Why do the Short-Term Rental

Strategy

2018 Movement of Shared Economy“Get Paid to Share”

Min and Chad Hurin pose with their

Model X and Model S vehicles paid off from TURO

Statistics for MD

• Between June 1, 2016 and June 30, 2017, Airbnb collected and remitted room rental and transient taxes that added up to $468,000 in tax revenue for Montgomery County

• Between June 1, 2016 and June 30, 2017 In the DMV in total it was 6.787,000

• A typical host in Baltimore earns about $2,200 on the low end and $7,500 on the high end monthly and receives guests about 60 (low) to 150(high) nights a year, according to Airbnb. Hosts are already responsible for paying income taxes on Airbnb earnings if they are booked more than 14 nights a year.

Short-Term vs Long-Term

• Short Term Pro Long Term Pro

• 1. More flexibility 1. Consistency

• 2. Less wear and tear 2. Less Turnover

• 3. Higher rental income 3. There may be no need to furnish/No $

• 4. Tax breaks and deductions 4. Charge High Security Deposit

• Short Term Con Long Term Con

• 1. More turnover 1. Owner has less flexibility

• 2. Not Guaranteed Income 2. Pay more in taxes

• 3. More Competition 3. Lengthy process to find/evict tenant

• 4. Too Many Things to Manage 4. More expensive/time consuming to market

• The Internal Revenue Service says • the most common rental expenses are:

• Management fees.Mortgage interest.Points.Property management fees.Rental payments.Repairs.Taxes.Utilities.

• Advertising.Auto and travel expenses.Cleaning and maintenance.Commissions.Depreciation.Insurance.Interest.Legal and other professional fees.Local transportation expenses.

• On average Airbnb, VRBO, Trip Advisor hosts have been able to pay on average 75% of their mortgage in a 7-10 year time span vs. traditional landlords who will pay on average 75% of their mortgage in a 20-25 year span - WallStreetJournal Fall2016

How to find Short-Term Rental Properties

Internet Direct Mail Other Strategies

Landlord Squeeze Page Probate Bandit Signs

Buyer Squeeze Pages Pre-Foreclosure Networking Events

Seller Squeeze Pages Back Tax/Tax-Lien Door Hangers

Primary Websites Free n Clear Wholesalers/Realtors/Contractors

Facebook Business Code Violations House Banners

Google Business Listings Divorce Bank/REO

Google Ad Words/SEO Expired Listings Box Truck

You Tube Non Owner Occupied Eviction Court

Real Dealers?!?! How do you find deals???????

How to do market analysis on your

potential property?

Helpers for Calculations• https://www.eliotandme.com/estimator

• Data scientists at Silicon Valley start-up Eliot & Me launched an AI-powered calculator that takes into account more specific details to determine the most accurate renting price for your Airbnb listings.

What is the difference between 6 figure earners vs 7 figure earners?

• https://www.rented.com/rentalincomecalculator/

• 1 - Your Fixed Costs –Mortgage, insurance, taxes, is their biggest fixed cost. • 2-- Your Marginal Costs -Marginal expenses only occur when someone uses

your unit. Cleaning, utilities, • 3-Your Managerial Costs This is the cost to make the venture worth your

time. ☺

• EX: $1850 per month. Utilities typically run $150 for electricity and gas combined. My house cleaner charges $120 per cleaning. And let's throw in $50 for my oversight. Therefore my total cost = $71/day = (($1850+$150+$120+$50) / 30.5 days)

AirDNAhttps://www.airdna.co/market-data/app/us/district-of-

columbia/washington/overviewA

•Let’s do an actual Case Study

The Riches are in the _______ with Short-

Term Rentals

Who would be your most profitable short term rental tenant and why?

Studies show in order…..

•1. Corporate Renters

•2. Large Groups- 8-15 ppl

•3. Insurance Claim Renters

•4. Disability Renters

•5. International Travelers

•6. US tourists

Steps to Building Your Niche

• Check out the Government Services Administration website: Look up your GSA.gov local housing rate HERE.

• Call companies in your area, hospitals, insurance companies, military bases,

• Figure out what your niche likes: i.e miltary may like sleep machines, international travelers may like a map of the city, things to do

Affiliate Market Your Niche

•My Niche- International Travelers – How many ways do you think I made money of one property?

• James Henson- Convention Travelers

• Tremi Clark-Families for Hospital Members

• Viola Brentwood- Insurance Clients

Where/How to advertise?

• Step 1 –Do market research to determine if you have a good short term rental.

• Step2 -- Identify your niche and all the sites associated with it

• Step 2 – Identify the features/benefits that fit your niche

• Step 3 – Furnish and Take Professional Pictures of your place

• Step 4– Set up accounts, Come up with Catchy title, Description, Rules Regulations, Check in , Check out Policy, Budget Worksheets,

• Step 5– Hire help if you need it in advance

• Step 6- Market to every segment that you are in, SEO, Advertisements

• Step 7-- Implement new profit centers

Steps to get this off the ground

But Brittney I work a 9-5 and can’t manage

the property

Automation Tools to Help

• Guesty -Takes out per booking 5-10%

• Channel Management- Have Va’s answer all of the inquiries 24/7

• Property Management Software

• Autoresponders• Banana Desk- Small monthly $35.00

• Channel Management- Hire own Va’s to answer inquiries 24/7

• Property Management Software

• Student Interns …Free.99

• Slybroadcast

• Call Fire/Call Rail

• Podio

• Automatic Locks

Who is the team?

• Front Desk Manager (Depending on How many beds)

• Cleaning Staff

• Linen Service( Depending on how many beds)

• Handy Man (property management)

• VA- to answer inquiries

• Lock Box Key Code

But Brittney what about Airbnb police?

Rules and Regulations for AirBnb/Short Term Rentals

• The big debate is over your primary residence being used for Airbnb vs investment properties.

• Washington DC/MD laws• This list is not exhaustive, but it should give you a good start in understanding your local laws. If you have questions, contact

the Department of Consumer and Regulatory Affairs or other city agencies directly, or consult a local lawyer or tax professional.

• Zoning Laws. The DC Zoning Code and Maryland Zoning Code contains definitions that may be relevant to your listing, including but not limited to “accommodations, transient,” “boarding house,” “hotel,” “inn” and “motel.” These types of uses are permitted only in certain parts of the city.

• Transient Use Licenses. The DCRA provides this information page about the process for obtaining transient housing licenses. To obtain the proper transient housing license, you may first have to apply for a basic business license.

• Get a Bed and Breakfast License

• Get a Boarding House License

• Get a Hotel License

• Get an Inn and Motel License

• Get a Rooming House License

• Other Rules. It's also important to understand and abide by other contracts or rules that bind you, such as leases, condo board or co-op rules, HOA rules, or rules established by tenant organizations. Please read your lease agreement and check with your landlord if applicable.

Rules and Regulations for AirBnb/Short Term Rentals

• Taxes. The District of Columbia applies two taxes totaling 14.5% that apply to various transient accommodations. More information is available in the DC Code, Sections 47-2002 and 47-2002.02. Airbnb collects and remits these taxes in the District of Columbia; more information about that process is available here.

• Montgomery County Guests who book Airbnb listings that are located in Montgomery County, MD will pay the following taxes as part of their reservation:

• Montgomery County Room Rental and Transient Tax: 7% of the listing price including any cleaning fee and guest fee for reservations 30 nights and shorter. For detailed information, visit the Room Rental-Transient Tax Information page.

•

What documents do I need?

Documents to have your Business in Check • SOP for the front desk manger, cleaning staff, delivery services,

supplies you will need throughout the business

• Rules and Regulations/Check-in Docs

• Insurance Docs

• License depending on what category your short-term rental falls in

• Lease agreements if doing Rental Arbitrage (multiple leases at a time)

• Business plan/Marketing Plan/ Calendar of weekly “To Do’s”

Brittney I don’t have money to do the deal?

Private Money

Identify your potential lendersUnderstanding your lender needs

Put together a STELLAR package (credibility packet; deal analyzer; financing request

package; promissory notes;mortgage docs)

Finding Lenders

Researching and building cash buyers listAdvertising in and researching investor group

Conduct direct mail or email campaigns to lenders

Private Money Part II

Docs to have:Lease Agreement

Preliminary Title ReportTitle InsuranceProof of Funds

Proof of InsurancePromissory Note

Mortgage Doc

Or Partner with me

How quickly can I do this?

Let’s Find Out

• https://www.hostelculture.com/hostel/us/washington-dc/elite-sleep-365-

Why do you have a coach?

• It’s lonely at the top

• Very few people can do the things I want to do

• Need the Right Blueprint, Environment, and someone to help you along the way