Are you thinking of ways to maximize your revenue in your multifamily property? Why not try short-term rentals? In our #HighlightsSunday episode, we look back at our conversations with Michael Sjogren of Occupied LLC and Jon Bell and Julian Sage of MxLuxe Partners about short-term rentals.
Watch the episode here:
Listen to the podcast here:
Michael shares tips and tricks on how you can convert your units to short-term rentals. Michael also reveals some of the tools he uses in automating his business. Meanwhile, Jon and Julian elaborate how they help others in the multifamily space to lease and manage short-term rentals through their management company. They share more insight into the short-term rental asset class, available tools that can help in growing your business, and how the pandemic has affected their market. Click the play button now and find out if this can be part of your options!
Key Points From This Episode:
- Michael details the business model he uses for turning a property into a short-term rental one.
- The concept behind Michael’s business model.
- Can multifamily units incorporate short-term rentals?
- Michael reveals tools he uses in automating the business.
- How does Michael ensure the safety of other tenants?
- Why you should think about investing in the short-term rental asset class.
- Options to consider as a syndicator looking into the Airbnb asset class.
- What the transition looks like from multifamily or other asset classes into short-term rentals.
- Julian shares some available tools you can use: AirDNA, PriceLabs, and more.
- They talk us through their fund that is buying Airbnb units; hedging off seasonality.
- How the pandemic has affected the short-term rental market.
“As this niche matures over the next couple of years, some of you may have seen there are different regulations. Every city is different.” — Michael Sjogren
“A lot of people, myself included, when I first looked at this business, I’m like, “It looks like great cash flow, but it’s got to be way more work than hiring a management company like traditional large multifamily investing.” The truth is if you have the right systems in place, you can automate 95% of the business.” — Michael Sjogren
“This is actually something that you can build a whole business around or, you can incorporate that into your other types of asset classes like, in the multi-family space is what we started realizing as we scaled our company.” — Julian Sage
“Knowing our seasons let us know how we basically change our pricing and we get really aggressive on pricing when things are low that way we can get longer stays and we try to target longer stays.” — Jon Bell
Links Mentioned in Today’s Episode:
About Michael Sjorgen
Michael is an investor, entrepreneur, CPA, author, speaker, instructor, and iTunes podcast host. Michael brings a wealth of finance, business, and real estate experience. Michael started his career as an auditor at an accounting firm where he specialized in real estate and economic development.
From there he went on to work in finance for an international energy company with annual revenues of $15.2 billion, advising the senior leadership team on high-value, complex transactions.
Michael earned an M.B.A. in Entrepreneurship from Walden University (summa cum laude), and a B.A. in Accounting from Assumption College (summa cum laude) where he was also the captain of the men’s lacrosse team. Michael enjoys trail running, golf, and spending time with his wife and son.
About Jon Bell and Julian Sage
In 2019, Jon Bell and Julian Sage began teaching others how to self-manage properties through their blog Short Term Sage, which has grown a community of thousands of hosts and is the number one podcast on iTunes for Airbnb. Jon and Julian currently help others in multifamily space through leasing and managing short-term rentals through their management company.
Julian is a 6-year active duty member serving in the U.S. Coast Guard. He currently resides in the DC area supporting Coast Guard Cyber Command. Julian discovered short-term rentals after looking to save money by renting out his basement online. He quickly discovered his 500 square foot basement was able to cover his entire mortgage! Julian began interviewing other short-term rental operators to find out what helped them become successful, as a result now has the TOP two podcasts on iTunes for Airbnb. Julian also creates educational material helping military members learn about financial management, investing, and the benefits of service.
Julian is the co-founder of MxLuxe Partners, an investment fund that provides quarterly distributions from short-term rental operations. He is also the co-host of Multifamily Success Stories, a podcast interviewing multifamily investors about their journeys in starting a scaling their multifamily portfolios.
Jon is a DC native and IT professional. Jon previously successfully owned and operated a HomeVestors franchise prior to discovering the success of short-term rental. After a business trip to San Francisco, Jon stayed in a furnished apartment unit but discovered that no one actually lived in the unit. After doing his research and some basic math, he realized the leaseholder was making over $2,000 a month without actually owning the property. When Jon arrived back in DC, he immediately acquired two properties, then seven, and quickly scaled to 24 properties in 18 months, cash flowing on average $1,500 per unit. MxLuxe now manages 40+ short-term rentals.
Love the show? Subscribe, rate, review, and share!
Join the Real Estate Syndication Show Community: