This Disruptive Corner of the Real Estate Market Is Red-Hot

|April 19, 2021
Key and room

There are a million ways to make money these days.

One of the hottest has flat-out exploded in the wake of the COVID crisis… short-term rentals.

If you haven’t explored this space, you’re missing out.

For anybody who’s ever written us and said, “I just need to find a way to get a few bucks to start investing,” here’s your opportunity.

The short-term rental space is as simple or complex as you want it to be. You can make a full-time living or a few extra bucks each week.

Start With Nothing

A business partner of ours has a big house very close to a major hospital. She rents out a single room to traveling nurses and doctors. It’s been filled nonstop since she opened her door.

Because of it, she’s living in her house for free.

Other folks we know don’t even own the homes they’re renting.

They’re using a technique known as “rental arbitrage.” They rent a place for several months in a row and then re-rent it on a short-term basis.

Find a college or tourist town, get a good marketing strategy… and then go sit on the beach.

Again, the industry is absolutely booming.

Thanks, COVID

Tourists are flocking to short-term rentals because they want to stay away from crowded hotels.

The work-from-home crowd is booking rentals across the planet, working in the living room during the day… exploring new sights and cities at night.

And even the folks who are traveling for work are now finding short-term rentals just as cheap – and often more luxurious – than hotels. And most come with private meeting space.

Many towns are reporting short-term rental demand has more than doubled from 2019’s figures.

In hot spot areas like the Hamptons, houses are now generating as much as $30,000 per month in income.

One new startup company called Landing had perfect timing.

It’s a large-scale arbitrage company that leases apartments across the country and then sells memberships that offer access to any of them.

When it launched, it intended to work in 30 cities. Then the pandemic changed things… in a big way.

It now has operations in 75 cities.

Good for them, right?

What about for you?

How to Play

It’s quite easy to hear about this boom and turn to oh-so-popular stocks like Airbnb (ABNB).

Its IPO in December got a lot of attention.

But like most traditional IPOs, the good money was made before the company hit Wall Street.

That’s because the company has a dirty little secret…

Nobody likes it.

Its users want nothing to do with it.

Nearly everybody we talk to in the industry who uses the company’s services is doing everything they can to get away from it.

The company charges high fees. It blocks key relationship tools, which makes repeat business tough to generate. And it makes customer service difficult.

Renters, too, are avoiding it.

They know they can get a better deal booking straight from the source.

It helps explain why the stock is down more than 15% over the last month and has given back nearly two-thirds of its post-IPO gains.

The company got the trend started, but now that the industry has gained momentum, more and more folks are realizing they don’t need Airbnb.

In fact, for many short-term landlords, their business may only be successful without it.

It’s a big craze with many facets.

It’s disrupting industries and transforming the way many folks – including major hotel chains – do business.

If you’re looking for a few bucks and have a home (or even a room) to rent… the short-term market is red-hot.

It’s another disruptive trend that’s not going away.