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If you found this helpful and want to donate! :)

0951 are the last 4 digits!

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Want to reference this presentation?

THIS IS FOR YOU!

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I use this slidedeck as a resource/brain dump. Please just listen/follow along. You’ll have full access!

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Table of Contents:

  • Who am I / my background?
  • MTR Overview
  • MTR Data
  • Case Study
  • MTR Community
  • Market Analysis
  • Summary/Contact Info
  • Presentation Reference QR Code
  • Resources for you (not shown)

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Who am I?

  • W2: Scientist / Science-Support Specialist
    • Lonza, Pfizer, Moderna, BMS, Lilly, etc
    • Love my job - Saving lives. Meeting patients.
  • Agent Investor with Candor Realty (NH & Maybe ME)
  • House Hacker / Multi-Family Investor / MTR,STR,LTR Savvy.
  • Traveler, foodie, pickleballer and investor

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My Real Estate Background

  • 5 years property management (16 week STR)
  • 3 years LTR/MTR experience - 2 family (family beach home + 2 bed/1 bath in Manchester)
  • 1 year house hack/full reno/owner occupy of Manchester 2 family
  • Present - Candor Realty Investor Agent and Property Manager

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Overview: What is MTR?

Anyone ever heard of it before?

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Overview: What is MTR?

  • Medium Term Rental = M2M + Furnished + Utilities + Space (private room/entire place)
  • Targeting travel nurses + professionals + insurance relocation individuals
  • Another tool in your toolkit of rents (pairs well with STR)
  • Rent is typically 20-30% higher than LTR per month
  • Vacancy should be 8-12% in underwriting.
  • Full utilities and furnished

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Overview: What is MTR?

  1. Furnished Finders - typically travel professionals (mostly medical)
  2. AirBnb/VRBO - families relocating or digital nomads (if stay is longer than 3 months - background check)
  3. ALE/CRS - insurance relocation companies. Right time/right place. Pay 2-5X LTR rents and unfurnished (ideal)
  4. Hello Landing - corporate leasing group

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Overview: MTR Process

  1. Determine LTR rates work for a potential MTR property. (ART Vs. Science)
  2. Have a place of interest to MTR. Check the data on demand (See later slide 35).
  3. Shoot a message to CRS/ALE before you furnish your place
  4. Furnished the unit + collate all utilities in your name
  5. Market the property on Furnished Finders, FB groups and AirBnB etc (see later slides)
    1. If needed have your background check system and leases set up
    2. Have a cleaning/contractor crew set up
    3. Use a 1-pager
  6. Decide on parameters of how you want to lease the place (M2M Lease)
  7. Lease it to a travel professional
  8. Profit

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Resources: Determining Demand

This is an ART. Not a Science.

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Resources: Staffing Agencies

  1. Aya Healthcare , Kathleen Frauel , Program Manager , P: (858) 926-7656 Ext: 19151 , Based in Rochester, NY , Kathleen.Frauel@ayahealthcare.com
  2. ALE Solutions
    1. REGISTER your property: https://www.alesolutions.com/register-housing/
  3. National Corporate Housing - https://www.nationalcorporatehousing.com/landlords - set-up your property here for companies in your area
  4. CRS
  5. Fastaff Travel Nursing
  6. Core Medical Group - if you navigate to the Travelers Tools > Housing Options - there are links to a few more FB groups
  7. AMN Healthcare
  8. Medical Solutions - if you navigate to Clinicians > Private Housing and scroll down they have a Housing Submission Form
  9. Call your local market hospitals HR staff/Human Resources. Tell them you’re a landlord looking to rent out a furnished space.
  10. https://mybnbaccelerator.com/ - a full service staffing/staging/marketing company
  11. CRS https://crsth.com/

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Resources: Prospecting Tenants

Here are my steps:

  1. Submit Housing on ALE https://www.alesolutions.com/register-housing/ , Corporate Housing https://www.nationalcorporatehousing.com/landlords , CRS https://crsth.com/ , medical solutions https://www.medicalsolutions.com/
  2. Contact direct healthcare companies; , Contact Kathleen at AYA Kathleen.Frauel@ayahealthcare.com , Contact ALE reps
  3. Post on FB Groups; https://www.coremedicalgroup.com/ (if you navigate to the Travelers Tools > Housing Options - there are links to a few more FB groups), https://www.facebook.com/groups/travelnursehousing/ , https://www.facebook.com/.../furnishedfinder.../ , https://www.facebook.com/groups/Travel.Nurse.Landlords/ ,
  4. Post on https://www.furnishedfinder.com/
  5. Post on AirBNB, VRBO, Google Vacation Rentals, Booking.com and set to 30 or 60 day stay minimums
  6. Post on Zillow and Apartments.com - post here and you can do 1 of 2 things. 1. Say in the top line (Targeting working professionals, etc with the MTR rate and you can add a small blurb that you will consider LTR tenants if the fit is right) or 2. Post this as an LTR with LTR rate. This will protect you incase you cannot find ANYONE for MTR stays. Make sure you criteria is set for acceptance (2.5x income, 650+ credit, etc)
  7. FOLLOW-UP: Arguably the most important. This is a lot of front loading, but you need to follow-up. Travel professionals are PROFESSIONALS. They don't have time for games. Keep it sleek and simple.

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MTR Impactors that I have noticed

  • LESS “COVID Money” is changing the landscape, but demand is still high
  • Average contract length - 13 weeks. 70% of contracts ask for 4-8 week extensions.
    • 2022-2023 - I had an 8 month MTR set-up with the same tenants - so less turnover.

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  • Housing stipends range depending on role/level/location
    • Many travel pros try to pocket the extra money - so they shoot for renting private rooms.
    • Most want pets allowed (~65%)
    • Many want JUST a private room for cheap, but little supply (~75%)

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  • 20 - 30% increase in rent over LTR rates
  • Furnishing costs ~ 5K for a 1 bedroom. 2+ bedrooms ~10K.

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Any guesses on the highest MTR demand in the state?

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Any guesses on price per bedroom/private room?

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Maine and MA

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NO PETS

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Data to be aware of!

Typical Travel Stipend Amounts:

    • Licensed CNA/LNA (Assistants) - $500 per week for housing. $300 for meals.
    • LVN/LPN (Practical Nurse) - $650+ per week. $450+ for meals.
    • RN (Licensed Nurse) - $750+ per week. $600+ for meals.
  • Average contract length for NEW nurses - 8 weeks. More than 80% extend!
  • There’s no demand data because nurses end up staying in hotels in NH since there is very little housing.
  • Many want just a 1 bedroom apartment. Most want to pocket housing money.

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Overview: MTR Process - My case study!

  • I’ll walk through what my setup looks like, location and go over some details

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Case Study: Location

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Case Study: Pre-Andrew

Dates

STR

Weekly

End of September Fall - May Spring

N/A

End of June - Beginning of September

Unit 1: $2,600

Unit 2: $2,900

Calcs

(10-12 weeks) = $60,000-$66,000 (Utilities included)

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Some notes:

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  • Parents are not “investors”. They just wanted to rent this out for 12 weeks.

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  • Utilities eat around 15% of the revenue

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  • We’ve had the SAME tenants for 10 years during the summer.

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  • 0% vacancy for the 12 weeks over 10 years.

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  • Cost roughly 14K to furnish between a few beds, furniture and basic amenities. We had a lot of extra items.

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  • Sales tax is 8.5% on stays under 185 days. Tenants PAY this - we don’t.

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Case Study: Year 1-2 experiment w/ Andrew

Dates

MTR (Current)

STR (Current)

Month - Month

Weekly

End of September Fall - May Spring

Unit 1: 4 bedrooms - rent per room - $1,000-$1,200 = $4000-$4,200 per month. More turnover.

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Unit 2: $3,600

N/A

End of June - Beginning of September

N/A

Unit 1: $3,000

Unit 2: $3,600

Calcs

Best case: 10 months * $7,600 = $76,000

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Worst case: 9 months * $7,600 = $68,400

Best Case (16 weeks * $6,600) = $105,600

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Worst case: (12 weeks * $6,600) = $79,200

Totals Revenue (not expenses. Consider -15%)

best case: $181,600 ** , worst case: $147,600

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Lessons Learned from Years 1-2

Lessons learned:

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  • Private bedroom yielded more money, but group had to get along. Headaches.

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  • Community condiments/toiletries

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  • Constant turnover

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  • Electronic Door Locks were essential

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  • Big fridge and community kitchen space + bathroom space

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Case Study: Current set-up

Dates

MTR (Current)

STR (Current)

IF we did LTR

Month - Month

Weekly

Year Lease

End of September Fall - May Spring

Unit 1: $3,000

Unit 2: $3,600 (Occasionally $4,100 - private bedroom added more $)*

N/A

Unit 1: $2,600

Unit 2: $2,800

End of June - Beginning of September

N/A

Unit 1: $3,000

Unit 2: $3,600

Calcs

Best case: 10 months * $6,600 = $66,000

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Worst case: 9 months * $6,600 = $59,400

Worst case: (12 weeks * $6,600) = $79,200

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Best Case (16 weeks * $6,600) = $105,600

$5,400 * 12 = $64,800

Totals Revenue (not expenses. Consider -15%)

best case: $171,600 ** , worst case: $138,600

LTR 12 months - $64,800

If MTR for 12 months: $70,000 - $79,200

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Case Study: Lessons learned (Current)

Year 3 to NOW - STR/ Long-term MTR full units. (1 month vacancy)

    • Average stay was closer to 7 months (two extensions because the tenants loved the place)
    • I reduced the rent by $100 for one person that wanted the whole place. I locked the bedrooms not used.
    • SUMMER TENANTS (STR) are basically a Timeshare program.
    • Mom & Dad can retire early due to the model. I don’t take a DIME.
    • Made less money in year 3/present, but also had less headaches. Worth the 10K hit.

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Case Study: #2

  • Context: My LTR 2 bed/1 bathroom tenant in Manchester said “Hey, I need to leave for X emergency”. She was renting for $2,100 per month and payed electricity/internet.
  • Result: I helped her move out. Contacted ALE Solutions. They needed a placement for a displaced individual . Current rent for July - September - $4,000 per month full utilities, ALE furnished the property, cleaned before/after and hired movers.
  • I will LTR it after this stent.
  • Lesson Learned; Be FLEXIBLE!

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Simplified Rentals Case Study!

Heather, myself, the PMs and Simplified Rentals are testing the waters as a package to offer clients later, but using our own rentals as case studies on expansion. Here’s a sneak peak!

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Case Study #1 SR:

  • Studio in New Bedford. No kitchen (we made a kitchenette)
  • LTR Rents: $1000 per month
  • MTR Rents: $1500 per month
  • First contract: 3 months with a 2 month extension

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Case Study #1 SR: Lessons learned

The Good!

  • Non-rentable unit is perfect for MTR space
  • Now that it is furnished - we just keep renting going!
  • Most affordable New Bedford location (cheapest hotels in NB are 2500 per month)

Pain Points

  • Systemizing Andrew + Candor team - moving parts
  • Miscommunication, who handles what tasks, etc
  • Leasing Handoff was sloppy
  • Furnishing (comms + cost 3K)
  • Unclean unit

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Case Study #1 SR: Lessons learned

The lessons learned resulted in this;

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Case Study #2 SR: Lessons learned

  • Second pilot MTR in New Bedford
  • 1 bedroom apt: LTR Rent - $1300
  • MTR Rent: $2000
  • Leased within 2 weeks for 3 months

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Case Study #2 SR: Lessons learned

The Good!

  • Handoffs went much smoother
  • Furnishing was easier this time
  • Owner Form to Leasing agent form worked well!

Pain Points

  • Unit was not cleaned well
  • The tenant coming in was easy to work with, but quick turnaround made items rush
  • Communication with PM was better, but not perfect
  • Washer/Dryer fiasco

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Case Study #2 SR: Lessons learned

The lessons learned resulted in this;

  • Listing agent to PM list - highlighted cleaning pre approval process and approval
  • Establishing timelines with the team listed as essential
  • Updating the owner fill form has made everyone’s lives easier!
  • Offered to pay for wash/dry service while washer/dryer are repaired
  • PM Handoff is essential

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What does this mean for you?

  • We are still testing out some ideas.
  • Work in progress and we want to establish a stellar system as a company before we unveil this to clients. Keeping it in-house until then.
  • Hopefully, Q1/Q2 of 2024 brings good news of potential future services as an MTR PM!
  • We are looking at a few different markets…
  • Making good relationships with major staffing companies…
  • Under Promise - Over Deliver

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Free market analysis!

Submit your property. I’ll give you a free market analysis of what you could do as an MTR!

https://www.jotform.com/form/232604508350045

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MTR Community

FB Group - Medium-Term Rental New England https://www.facebook.com/groups/1267832943858928/

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Summary

  • Is the constant turnover every 2 months worth it? Is that a pro to keep eyes on the place?
  • Consider hidden costs (sales tax / utilities /wear & tear/cleaning)
  • Supply & Demand
  • Toolkit
  • Make sure LTR rates work for you FIRST. Then, factor in MTR/STR.

Laws & Regulations

Risk Tolerance

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Supply/Demand

NOI

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Cash Flow

Time

Management

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My contact info

-Andrew Bosco

-Candor Realty Investor Agent

-Off Market Prospector

-Multi-Family buyer/seller agent

-Creative STR/MTR/LTR Mind

  1. Click “Save contact”
  2. Then create new contact on your phone.
  3. Send me a text with your name!

If you have ANY questions, then please reach out to me.�

I’m an open book and believe in helping others achieve - WEIRD I KNOW!

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Want to reference this presentation?

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Resources

  • Remainder of this presentation are the resources that I’ve prepared and kept for your convenience. Some may have already been referenced in the beginning of the presentation!

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Here’s everything to get you started on your MTR

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  1. Material List to Furnished
  2. 1 - pager to protect yourself
  3. Staffing agencies to contact ASAP
  4. Determining demand
  5. Prospecting Tenants strategy/marketing
  6. Software to consider
  7. STR Contacts to consider
  8. My FB community

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Resources: Materials List

  1. Candor/Simplified Rental Lists
    1. Simple List
    2. Listing agent to PM
    3. Listing agent to Leasing Agent
  2. Material Lists
  3. ​

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Terms and Conditions - 1 pager

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Everyone that rents the property signs this - regardless of lease type.

Verify info with a LAWYER

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Resources: Determining Demand

This is an ART. Not a Science.

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Resources: Staffing Agencies

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Resources: Prospecting Tenants

Here are my steps:

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Resources: Software to Consider

    • AirBNB/VRBO will take out taxes for you.
    • Guesty - connects VRBO/AIRBNB (good for up to 20 units)
    • Price Labs - shows dynamic pricing (better than built in AirBnb System)
    • Rankbreezen - tells you where you’re at market rent wise
    • Lodgify - good for STR/MTR host software
    • Vivian - helps determine the demand of nursing/travel professional jobs nearby.
    • Breezeway - helps with giving tasks to handyman,contractor,cleaners
    • Furnished Finder - finding tenants. Furnished Finder does NOT take out taxes for you. They do have internal software for rentals - Keycheck.
    • Hospitable - team messaging systems with your contractors/cleaners
    • Owner rez - vacation rental PM software (2-10 units)
    • Appfolio - 100+ units - universal/overall software. does it all. expensive.
    • Azibo, Avail, Innago, Apartments.com, Hemlane, Turbotenant, Rentredi - 2-50 units - small-medium LTR and MTR investors

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Resources: Learn more?

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