What can real estate investors learn from new Extended Stay housing solutions, and how can they use that information for increasing their own profits?
Between the economy and fear still ingrained in some from the recent bubble, the demand for a new hybrid housing solution has been increased.
Many Americans are interested in buying a home in the near future and don’t want to lock themselves into long term leases, while others choose these options to enjoy more freedom and some are resorting to it out of financial necessity.
Renters in this niche try to avert forking over big deposits and upfront money, prefer not to go through credit checks, yet often desire decent quality housing.
Some real estate investors have been banking off these individuals with weekly rentals on horrifically kept tiny units that they barely want to step foot in. These properties can provide much bigger profit margins and extremely high rents compared to those leasing similar units on a long term basis. In fact, some are virtually doubling their cash flow by leasing on a week to week arrangement and can find evictions far easier.
However, extended stay solutions are also stepping up their offerings in a big way. The Value Place brand is perhaps one of the most widespread of these. They offer weekly rentals in newly revamped multifamily apartment buildings that bridge the divide between traditional extended stay hotels which are far more expensive and low end apartments. Real estate investors that have investigated them before will have found they offer laundry services, internet connection, furnished units and even a manned front desk.
So what can real estate investors take from this approach to create bigger profits from buy and hold rentals, multifamily apartments or even positioning properties to flip them for bigger spreads?
After extensive research and testing, Value Place is now releasing its new 2.0 model which includes the following upgrades that might be smart moves for other real estate investors too:
- Energy efficient appliances to reduce costs and increase spreads
- Expanded storage space
- More counter space
- Easier to clean vinyl tile flooring, laminated walls, ceramic cooktops
- Keyless locks
- Motion sensors for lighting
For those really looking to go big in real estate investing, it’s important to look at how this company has franchised its rental property designs, provides property management training, and provides corporate property management services for turnkey investments.
How could you apply some of these concepts to your own strategy?
