National CRE News In Your Inbox.

Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.

Sub Markets

Property Sectors

Topics

Multifamily Owners Find That Short-Term Rentals Can Work for Them, Too

National  + Weekender  | 

Multifamily owners, investors and landlords have begun getting into the short-term rental space, says Jetstream, a technology provider for short-term rental owners and managers. That’s due largely to a shift away from long-term master leases to more flexible, revenue-sharing leasing options.

“The multifamily real estate sector is starting to access the short-term rental market because they can see the commercial opportunities on offer for high growth and ROI,” says Mike Liverton, founder and CEO of Jetstream. “More flexible leasing options have replaced the rigid long-term agreements and this is working well for both investors reaping the benefits and residents wanting to sublet their apartments on Airbnb and Vrbo, earn additional income and work from anywhere.”   

As longer lease agreements fell down during the pandemic, taking companies like Lyric with them, new revenue-sharing leasing agreements emerged, Jetstream says. For example, Mint House was quick to capitalize on more flexible agreements, taking over 200 vacant units in four apartment buildings in 2020. This type of leasing is more attractive for multifamily investors as they share in the profitability. 

Owners in the apartment sector have also realized that previous master lease agreements weren’t as tight as they once thought and are looking to expand into the short-term rental market as a new direction. The attraction of flexible leasing and enabling technology is driving this trend.

As a case in point, Orion Haus, reportedly the largest multifamily home sharing management company in the U.S., recently added 10 buildings to its portfolio. The company has signed more than 8,000 pre-lease agreements, says Jetsream. Orion Haus properties enable residents to flex their apartments as they choose so they can sublet while working / living away from home.

A recent survey by short-term rental booking platform Leavetown.com found that 81% of respondents think they’ll continue to work remotely post-pandemic at least part of the time, with 45% agreeing that they will continue to work remotely most of the time. The need for more flexible accommodation options to service the demand from remote workers is growing and this is reflected in short-term rental growth. 

Connect

Inside The Story

Jetstream

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Lease
New call-to-action