In the dynamic world of mid-term rentals, learning from the experiences and strategies of successful entrepreneurs can provide invaluable insights for newcomers and seasoned professionals alike. This article delves into the journeys, methodologies, and innovative approaches of industry leaders like Jeremy Nixon, who has carved out a niche in the mid-term rental market. From strategic property acquisition to efficient management and innovative solutions, his story offers a wealth of knowledge and actionable strategies for anyone considering venturing into mid-term rentals.
Strategic Property Acquisition through Rental Arbitrage
Stay Nixon's (opens in new tab)Jeremy Nixon, has mastered the art of strategic property acquisition through a technique known as rental arbitrage. This strategy entails leasing properties and then renting them out on a short-term or mid-term basis, with the goal of earning a profit from the rental income exceeding the lease payments. Jeremy's strategy is based on meticulous planning, negotiation, and a thorough understanding of the rental market, allowing him to maximize profit while minimizing risk.
Long-term Mindset and Planning:
Jeremy takes a long-term perspective and intends to stay in a place for at least five years, which distinguishes his strategy. This long-term perspective is critical to establishing stability and cultivating fruitful relationships with property owners and managers. It also allows him to fully comprehend the local market dynamics, optimize property selection, and tailor his offerings to the specific needs and preferences of the local tenant pool.
Negotiation and Rent Concessions:
Jeremy's ability to negotiate favorable terms with property owners is a key component of his acquisition strategy. He requests rent reductions for the first few months of the lease, lowering his upfront costs and increasing his financial flexibility. In exchange, he agrees to lease the properties for a minimum of two to three years, giving the property owners assurance and stability. This mutually beneficial arrangement is critical, laying the groundwork for long-term success by fostering trust and cooperation between Jeremy and the property owners.
Formalizing Agreements through a Letter of Intent:
Jeremy emphasizes the importance of formalizing all agreed-upon terms in a Letter of Intent (LOI) once the negotiations are completed. The letter of intent (LOI) is a detailed document that details the concessions, lease terms, special provisions, and any other agreements made with the property management or owners. It serves as a preliminary agreement before the final lease document is signed, ensuring both parties' clarity and mutual understanding.
To ensure accuracy and comprehensiveness, Jeremy strongly advises involving an attorney in the drafting of the LOI. The role of the attorney is to translate verbal agreements into formal documents that capture all of the nuances and details of the arrangement. This step is critical to avoid future misunderstandings or disputes and to ensure that both parties understand their rights and obligations.
Embracing Simplicity and Efficiency:
Jeremy emphasizes the importance of simplicity and efficiency in managing his operations. He employs standard Excel sheets as a foundational tool to manage expenses and calculate rent meticulously. This approach, while seemingly straightforward, allows him to have a clear overview of his operational costs and income, enabling him to make informed decisions and maintain financial stability. By keeping his management systems straightforward and effective, he can concentrate on streamlining his operations and improving the tenant experience without becoming bogged down in pointless complexity.
Dynamic Pricing Strategies:
Jeremy employs dynamic pricing strategies, such as Price Labs (opens in new tab), to maximize revenue and adapt to ever-changing market demands.
He can use dynamic pricing to adjust rental prices in real time based on factors such as demand, seasonality, and market trends. This strategy allows him to optimize his pricing structures, keeping him competitive and reflective of current market conditions. He can increase profitability and ensure the long-term viability of his business by staying tuned to market dynamics and adjusting his pricing accordingly.
Long-term Stay Discounts and Customer Retention:
Recognizing the importance of securing reservations and cultivating customer loyalty, Jeremy offers appealing discounts for extended stays. This approach not only encourages tenants to stay longer, but it also increases the likelihood of repeat business. He can build strong relationships and a loyal customer base by providing value to his tenants and creating positive experiences. In the mid-term rental market, customer retention is critical, and by incentivizing longer stays, he can ensure a steady stream of income while mitigating the risks associated with vacancy.
NoiseAware: A Guardian of Tranquility:
Jeremy monitors the noise levels in his units using NoiseAware (opens in new tab), a cutting-edge noise monitoring service. NoiseAware does not record conversations, but it carefully monitors decibel levels, allowing Jeremy to detect any disturbances or potential breaches of peace on the property. This technology is especially useful for properties in high-traffic areas, such as those near the Riverwalk in downtown San Antonio, which are popular with international visitors.
NoiseAware acts as a remote guardian, allowing Jeremy to monitor noise levels from any location and ensure that any disruptions are identified and addressed as soon as possible. If the noise levels exceed a predetermined threshold, alerts are sent out immediately, allowing for quick action. This proactive approach to noise management not only preserves the property's tranquility but also reduces the risk of conflicts and complaints, ensuring a pleasant living experience for all tenants.
External Cameras: The Watchful Protectors:
Jeremy has strategically installed external cameras, including doorbell cameras, at each unit, creating a robust surveillance network in addition to noise monitoring. These cameras act as silent, watchful guardians, meticulously monitoring the ins and outs of each unit and providing visual verification in the event of any discrepancies or disputes.
The presence of doorbell cameras adds an extra layer of security, allowing Jeremy and his team to confirm the number of occupants and ensure that house rules are followed. For example, if a gathering at a unit is suspected of exceeding the permitted number of guests, the cameras provide the visual evidence required to confirm such violations and facilitate appropriate interventions.
Empowering Tenants and Enhancing Security:
Jeremy's innovative approach to security also includes tenant empowerment. Midterm renters are given temporary access to the doorbell cameras, which provides them with an added sense of security, which is especially useful when they are staying in a new place. This empowerment not only increases tenants' feelings of safety, but it also fosters a sense of mutual respect and responsibility, reinforcing adherence to property rules.
The Importance of Location and Property Types:
Optimizing for Profitability:
Jeremy's strategy is based on identifying the most profitable property types in high-demand areas. He's discovered that studios and two-bedroom units are especially profitable. These property types appear to be popular with a wide range of tenants, from international travelers to small families, because they provide the flexibility and space that they require. Jeremy has been able to optimize his portfolio for maximum profitability and demand by focusing on these property types, ensuring a steady stream of income through his rental arbitrage endeavors.
Aligning with Market Demands:
The type of property and its location are important factors in determining the level of demand and, as a result, the revenue generated from mid-term rentals. Jeremy's methodical approach to property selection is based on a thorough understanding of market trends and tenant preferences. He matches his property acquisitions to market trends and demands, ensuring that his offerings are always in sync with what tenants are looking for. In a competitive rental market, this alignment is critical for maintaining demand and optimizing revenue.
Leveraging Location:
Jeremy's focus on properties in downtown San Antonio is a strategic move to capitalize on the area's high international travel. The location is about more than just geographical positioning; it is also about being in the right market where there is demand. Being in an area with a high level of international travel means a constant influx of potential tenants, allowing him to maintain high occupancy rates and, as a result, stable revenue streams. The vibrancy and allure of downtown San Antonio add to the allure of his properties, making them a popular choice for many tenants.
Diversification and Risk Mitigation:
Jeremy mitigates the risks associated with market fluctuations and changing tenant preferences by diversifying his portfolio with studios and two-bedroom units. This diversification enables him to cater to a wide range of tenants, from singles to small families, ensuring that his properties remain relevant and in demand. It also serves as a safety net, allowing him to navigate market dynamics more effectively and maintain a resilient portfolio even during difficult times.
Catering to Diverse Tenant Pools:
Exploring Various Tenant Demographics:
Jeremy's approach to short-term rentals isn't limited to a specific tenant demographic. He has successfully tapped into a variety of tenant pools, including traveling medical professionals, corporate travelers, and people relocating. Each of these tenant pools has distinct needs and preferences, and by meeting these diverse needs, Jeremy has been able to optimize his occupancy rates and ensure a consistent flow of income.
Emergence of the Sports Industry:
The growing demand from the sports industry is a particularly notable development in the tenant landscape. Athletes, who frequently require temporary accommodations while traveling, are turning to mid-term rentals as a convenient solution. Jeremy has taken advantage of this new trend by hosting athletes from well-known teams such as the San Antonio Spurs and the Tennessee Titans. This niche market offers lucrative opportunities for landlords, allowing them to cater to high-profile tenants while potentially securing premium rental rates.
Strategic Positioning and Marketing:
Strategic positioning and targeted marketing are essential for effectively catering to diverse tenant pools. Jeremy's success in attracting a diverse clientele can be attributed to his meticulous marketing approach. He has been able to appeal to a wide range of potential tenants by emphasizing the unique selling points of his rentals and tailoring his promotional strategies to resonate with different tenant demographics.
Risk Mitigation and Stability:
Diversifying tenant pools is not only a profit-maximizing strategy; it is also a risk-mitigation strategy. Landlords can protect themselves from market fluctuations and demand variability inherent in specific tenant pools by not relying on a single tenant demographic. For example, if corporate travel demand falls, having tenants from the medical or sports industries can help to maintain stable occupancy levels. This diverse approach strengthens the rental arbitrage business's resilience and stability, ensuring long-term success even in volatile market conditions.
KeyCheck: A Comprehensive Solution
Jeremy praises KeyCheck (opens in new tab), emphasizing its role as a one-stop shop for stress-free property management. This platform has aided in the simplification of various aspects of his rental business by serving as a centralized hub for tenant-related processes. It includes features like tenant-paid screenings, rent payment processing, and online lease creation, all of which are critical for ensuring a smooth and efficient operational flow.
Jeremy appreciates KeyCheck's convenience and efficiency in allowing him to manage his properties without the hassle of chasing down checks or sifting through piles of applications. He can use KeyCheck to organize and manage all aspects of property management in a simple and efficient manner, giving him more time to focus on improving tenant experiences and expanding his portfolio.
Furnished Finder: Connecting with Tenants
Another platform that Jeremy finds useful is Furnished Finder (opens in new tab). It acts as a marketplace, connecting landlords and tenants, particularly those looking for furnished spaces. This platform is especially useful for those in the mid-term rental business because it caters to a niche market of tenants looking for furnished accommodations for extended stays.
Jeremy appreciates Furnished Finder's specificity and focus, which allow him to effectively reach his target audience. By listing his properties on this platform, he can connect with potential tenants looking for the convenience of furnished spaces, maximizing occupancy rates and ensuring a consistent stream of income.
References:
Stay Nixon
www.staynixon.com (opens in new tab)NoiseAware:
www.noiseaware.io (opens in new tab)KeyCheck:
www.keycheck.com (opens in new tab)Price Labs:
www.pricelabs.co (opens in new tab)Furnished Finder:
www.furnishedfinder.com (opens in new tab)
Episode 53 Transcript
Welcome to Landlord Diaries where we talk about midterm rentals and the opportunities behind them we'll share landlord stories talk about maximizing investment potential and discuss how to live the very best landlord life this podcast is probably brought to you by furnished finder the place for everything midterm rentals remember to like And subscribe if you enjoy our content hello everyone we are so happy you are here today watching with us or listening to the landlord Diaries this is your host Kelly Bailey with midterm rentals in the Austin Texas area all the way up to Temple Texas how are you today my wonderful co-host Katie I'm doing good I'm Still rocking my man voice a little bit but it's better it's getting better um so today we get to talk with Jeremy and Jeremy um is like the master of Arbitrage his company that him and his wife created from the ground up um Arbitrage and rent out like 40 units within one building in San Antonio it's a very impressive um and I think it was really cool to pick his brain as far as how he scaled and just how to approach Arbitrage because it's a very hot topic today so enjoy um and again please share comment like subscribe do all the fun things we love seeing and reading your feedback we read each and every single comment Kelly will probably respond because she's awesome um and we put a lot of time and effort into these so we would love to hear your feedback and please don't forget that every episode is brought to you by Furnished Finder where you can list your midterm rental for 99 a year and that gets you unlimited tenant communication unlimited leads Unlimited everything it's so great so be sure to check it out that reminds me of the behind the scenes I wear my on the commenting on YouTube I wear my Furnished Finder hat for some answers and I wear my Kelly Bailey landlord for other answers right that's what makes this show so cool is because we get to ask questions from the business side and from the landlord side because we both also have midterm rentals so always remember that guys when we're asking questions we're asking them from the side of you know business asking a business plus us as landlords asking the questions so yep enjoy foreign [Music] Jeremy Nixon in San Antonio Texas founder of stay Nixon Jeremy offers 40 plus Arbitrage style units in one apartment complex his motto is whether you are staying for a few days or a few weeks we will do everything in our power to make this your best experience yet you can connect with Jeremy on his website staynickson.com Jeremy the man the legend you're here uh how are you doing today I'll do it fantastic how are you doing we are doing good we're looking forward to talking to you today and I'll uh for those of you that are watching our show Jeremy and I met at the chipper conference this year the corporate housing providers Association it was a lovely time in New Orleans and we just looked forward to sharing Jeremy's story with you guys so first off Jeremy do you recommend others join uh chippa how has that been for you yeah absolutely absolutely and um for those that don't know chip is just the corporate housing providers Association um we found it to be very very valuable uh joining the organization because we are able to just tap into a bunch of different resources um that we just you know prior to joining I had no knowledge about okay okay so tell us about your core your current portfolio um how many units what types of units where they're at and tell us kind of quickly how you got to where you are now yeah absolutely so um today we manage a portfolio uh just over 40 units um primarily in the San Antonio area but we also have uh inventory in Dallas um we got to where we are oh my God uh we started back in 2018. my wife and I and I was I was prior military uh and she was a nurse at the time and uh we would work each of us would work about 12 hours a day and we would come home and just look at each other like this is not it uh so um one day we said you know what let's let's um you know let's work on an exit strategy to get us both out of our you know our current situations and um I I was always into real estate I used to just uh look at Zillow at my dream house every night so I'm like why not do something in real estate and um so at the time I came across like a YouTube video uh and it was talking about short-term rentals so I uh I talked my my wife into it and uh you know fast forward we set up our first um uh four actually five uh short-term rentals back in 2018 and um you know we we saw it it just took off for us it took off for us and um you know fast forward uh we would add five units here uh 10 units there you know and then another 14 units and and you know so we over time we were able to grow that to uh the the 40 units that we have now and we just haven't looked back that's amazing and so how does the complex work with that is if something comes available are they like you guys ready for some more do they come to you first oh well uh now they do uh now at the beginning it wasn't it wasn't uh it wasn't like that they were a little skeptical and uh you know they didn't know we were capable of and um you know especially uh around the time that the pandemic happened um so the pandemic uh yes it was it was terrible uh but it was also a blessing in disguise for us because we were able to show um you know uh we were able to stand the test of time and it also showed that you know we were a company that um you know they can trust right so uh yeah yeah uh so after that they were just throwing you in the status and now we have the the uh the max amount of units that we can have in that uh community so it's amazing and how many of your stays are uh 30 plus days versus you know those maybe four night stays or a couple weeks for corporate travels what's your balance between short term and Midterm um to be honest we're really heavy on short term so I want to say probably about over over 80 percent of our stays currently are are short term uh maybe somewhere between 15 20 or or midterm um uh of course we would um it would ease my mind uh if we uh transition to more midterm I think that's the play uh nowaday but um but yeah so that's our current mix and with managing so many units you have to have your systems down pretty well so tell us any tips you might have as far keeping track of all those properties cleaning all the properties managing Linens all those things that as you get more and more properties suddenly become very challenging uh great question great question so uh one of the tools and I'm I'm sure uh we've heard this all uh several times but um slack is probably our number one um the tool that we use the most we use that every single day all throughout the day and I'm talking 24 7. so um that is our communication Hub uh that's where all of our um our team interacts and I'm and I mean you know from our uh offshore uh virtual assistants to our housekeepers to our uh on the ground operations assistants uh myself um like the executive staff everyone communicates via slack uh and it's fully transparent um we also use um uh we actually don't use uh a lot of companies might use like Breezeway uh which is a great company uh but we're able to we have a system in slack to where you know we kind of upload our our cleaning videos and whatnot and different channels so we have channel uh for each and every unit right so um something that happens within that unit is communicated on that channel and that's how we kind of track what goes on uh in each year and it's pretty easy I want you you know once you get the hang up I've got a little behind the scene knowledge and one of the things that is really cool to me is stay Nixon has set up this hotel style operation within this one complex in San Antonio and kind of works alongside the leasing agent staff at times and has figured out how to have a office from within the complex so tell us how all that works and what a day-to-day uh what day to day looks like at stay Nixon for your properties yes yes absolutely so so yes if you if you if you were actually to go to uh San Antonio to one of our units and um you know you you you stayed at one of our units uh which you can book at state Nixon US | Watches for Men & Women | Team-Designed, Custom-Built by the way um but you went there you would um it would very much give you a hotel feel uh but just within an apartment community so what do I mean by that uh you you probably would definitely see our housekeepers um just Roman uh with their their cleaning carts their housekeeping carts uh we have our uh operational assistance um that'll be you know running around uh either helping assist with maintenance issues um or um you know maybe we missed something right because you know everyone is uh uh we're human right so maybe we forgot a towel or um whatever it may be they may be running and assistant um and handing those items to to guests or guests need extra items um it is very much a hotel style we do have um I want to say six storage units on site um and then also a a office um as Kelly mentioned so uh in our office we actually have our logo on the wall uh we it's it's an awesome environment I'm I'm not just saying that my company right but that's so cool guilt it from the ground up right like it's a cool thing to see that kind of come to fruition so okay so you guys everything well I don't want to say everything but kind of maybe the heart of your business off of the Arbitrage model which is a very Hot Topic in real estate Investments especially because of prices right now and rates right now um I know I have two Arbitrage properties that we use for midterm rentals um but I would love to hear kind of your advice to anyone who's considering getting into Arbitrage or you know how to do it right how to do it well how to Foster those relationships I know anytime I kind of tell anyone what we're doing with our two Arbitrage properties they're like wait how did you get the landlord to agree to that so I'd love to hear kind of your your take on it foreign is proudly sponsored by furnished finder the ultimate platform for hassle-free midterm rentals whether you're a seasoned landlord or just getting started furnished finder is the place for you with furnished finder you can say goodbye to booking fees and hello to direct bookings for 30 day plus days it's a win-win for everyone involved so if you're ready to experience the joys of midterm renting and take a load off your landlord shoulders head over to The Leader In Furnished Monthly Rentals today we make it easy to get started we're grateful to furnished finder for sponsoring this episode and we're sure you'll love what they have in store for you [Music] yes well I think the the first thing is um to do Arbitrage in today's climate is a scary thing uh I'll be straight up with you it's very scary um you you have to be you really have to know your numbers um and when I say no you're like you really need to know your numbers uh you need to understand uh that there will be months um that that are that are bad uh you need to be prepared for that um you'll also have great months um and uh you need to be prepared for that what I mean by that uh we definitely don't want to go and spend all the profit that we make in those great months because we may need some of that to kind of carry Us in those now months uh you really have to understand your expenses um it's really good to know your expenses you know uh before you even get into um you know agreement with the with the apartment community or or you know whatever it may be but you really got to understand those expenses and you may say hey well you know this may be my first rodeo how do I even understand the expenses if I if I haven't you know if I haven't been there um and then that's where you can kind of lean on you know individuals who are already in the space um so you know it's a long way of saying really I'm a um I actually have an accountant degree so um you could probably hear that the the numbers mean everything to me I make a lot of decisions based on data um almost all of my decisions are based on data so I really like to have a good feel for um you know what I'm what I'm getting into uh but to the other part of your question which was like you know how do you how do you even get in a community let's just assume the numbers work you know how do we even get in a community today because um you know I think uh the the you know short-term rental pitch uh has gotten uh a little outdated at this point um you know so uh I what I will tell you is it's a little bit easier for me um just because I have that track record but if you are you know you're you're brand new uh maybe leveraging you know um you know a lot of people are in masterminds or um communities that you know help teach short-term rentals uh maybe leveraging those individuals that are more experienced um that could be a way to to try to get into a community um so it really just it really just depends um but there's no there's no easy there's no hey this is what you do and then and you'll get in times are very different now right yeah I want to Echo what you said about knowing your numbers because coming from a personal perspective where we have properties we rent out that we own and ones that we Arbitrage the Arbitrage numbers are a little tighter usually because the way I think about it there's two people making a profit in this situation right so we're paying rent and that has to cover their expenses and leave room for profit and then we're also charging like so it's it's a double profit situation which makes it just a tighter game um and um it's it's a little bit of an easier entry because you don't need all the capital up front um but you have to get creative with how you're going to make the numbers work and you really have to know those numbers because um a lot of the properties we have considered in the past we've looked at and I'm like on the surface these look great you crunch those numbers and it's like a hard pass and I'm like we would make seven dollars a month that would be great so I think that's really important and it's not you know apartment complexes for for the vast majority of them like their rents are public right you can usually find them on their website so if you're if you're if you're going that route you can come up with one formula and it's very quick to analyze most of most of the opportunities out there um but I just like how you put some emphasis on that because yeah it can be it can be a little bit more challenging to make the profit that you want to make do either of you want to share how you go about honing in on the numbers for your arbitrages so for me um I more so like to and and you know I I do want people to understand you know this is based off of my model so this this may not you know translate to what you're trying to do uh based on your model but because we do apartment style we do you know we do we do a lot of volume um you know we like to get concessions on the front end right so uh as long as the the numbers make sense one of the numbers need to make sense um so as long as the numbers make sense uh what I like to do before I get into a before I agree to take over you know units um I like to get at least uh two months free on the front end and in return um you know I promise um you know to um take over those properties for at least two years so uh if I know you know I'm setting up shop somewhere I'm I'm already in the mindset of you know this is going to be a long term or play for me so I'll probably go ahead and plan to be there at least five years but in the in our initial agreement you know we we draw it out to where hey you know we'll if you guys give us at least two months free uh rent concession up front then we'll yeah for sure in return we'll we'll lock it in for you know at least two to three years and um and that can just be drawn up in like an Loi letter of intent uh yeah but that's one of my strategies to um you know try to recoup my my upfront cost so Katie you want to share your style yeah I mean I have just kind of a standard Excel sheet it's nothing fancy but it just kind of has you know all my expenses and I can input the rent and then it has what I um would feel comfortable charging as a midterm rental and then I can plug and play very very easily so because Kelly knows this I'm all about being efficient and because I don't I run ours kind of on on the side and with some family so um that's a big thing for me but we are doing one at a time so it's it's a different thing I can't ask for as many concessions especially because I'm a lot of times asking for flexibility with their policy as far as letting me sublease anyway so I don't usually get to ask for concessions because I don't have kind of that buying power um so I just try to make sure that whatever their Market rent is it's going to leave space for me and um where I see a lot of opportunities maybe where a complex or a property is under marketed and it's a really great property um and with the right Furnishings or the right photos or something I can see that like you would actually really see its true colors right like it's kind of like the Disney character who just needs the makeover like I'll just give love it so well one thing that Jeremy does very well so the numbers are important once you decide okay this is now what I'm going after and you're in those conversations with a complex you have a few key boxes that you check to make sure it's a good fit before you enter into communication or at least with a complex so do you want to talk about those and if you want me to remind you about any of them let me know yeah it wouldn't hurt to remind uh I'll just read them real fast and then use share whatever you want to profitability don't rely on OTAs undeniable location and don't count on short-term rentals uh due to the city regulations and then yes that letter of intent up front with the complex such as rent increase concessions laid out in an Loi so probably that part's what I'm really asking about [Music] hey landlords are you ready to level up your rental game and simplify your life well get ready to meet your new best friend keychek keycheck is your all-in-one solution for stress-free Property Management with tenant paid screenings rent payment processing online lease Creation with design and a suite of incredible landlord tools you'll wonder how you ever lived without it no more chasing down checks or sifting through piles of applications keycheck helps you organize and manage all things Land Learning in a simple and efficient way so if you're tired of the rental chaos and crave seamless efficient management head over to KeyCheck Homepage - Free Tenant Screening and Residential Leases Available and sign up today make landlord life a breeze with keycheck the game changer for Modern Property Owners [Music] definitely the the having a um a sheet where you can kind of plug and play uh with your your expenses or whatnot um um definitely 100 I assume that people already had that but I I I kind of jumped the gun there so you don't have something like that you have to have that you definitely have to have that um okay so uh we're talking um Loi and um yeah what do you make sure you're getting writing from the complex up front uh and negotiate before you enter into an agreement got it so the biggest thing is just to um honestly it's just to make sure that uh one you have an attorney um and you know people kind of get spooked out sometimes by that oh I can't have I can't afford an attorney or we don't even find that attorney from I mean it's not hard to find an attorney um uh so once you have an attorney and this this this may cost you about a thousand dollars um two thousand the the absolute you shouldn't pay more than two thousand but um anything that you guys agree and when I say um you guys I really mean you in the uh property management or the owners of that particular asset um you just want to get that in writing um it does not have to be a in a certain format or um you don't have to have certain terms in there although I'll give you a couple terms that you do want in there but it doesn't have to look a certain way people think it has a look a certain way it really does not um that is the attorney's job to kind of draft that up you just providing the information that you in the uh other party agreed to and then they draft that up one of the things that I always make sure that is in there though is any concessions that we agreed upon so definitely that needs to be in there also the terms of the lease so you will end up signing at least a separate lease document this is not the actual lease this is just what you intend to do but you will sign a separate lease document so you can have the terms in the LOI that will also be in the lease document like those special Provisions to allow you to you know do your business so if you are going to be subleasing or whatnot that can be included in the LOI I mean it also attached as an addendum to the lease I will also have in your Loi you know the amount of years or a month that you plan to you know operate on a property um any other things that you guys agree upon all that just needs to be in the LOI so it's it's um it's pretty straightforward it's just it can be unfamiliar territory for a lot of people so we kind of freak out like oh my God what does that do you know it's really just you know me and you talking and we you know hey I agree to this and you agree to that and so let's just put it on paper and then now let's say it's a uh it's a an actual document that we we both will you know follow okay love it and let's talk about kind of the the property sizes that you have found to be most appealing for your business model um like the unit sizes are they Studios one beds two beds where have you kind of found the sweet spot and I know that this can um vary depending on the area of the country so as a reminder you are in San Antonio right so for us um to be honest um Studios have been like the most profitable uh now we are right outside of um like the Riverwalk in San Antonio so like downtown San Antonio uh so we get a lot of um international travel um and and you know people love studios I was like why why not the one bedroom um people love studios and then also two bedrooms uh so two bedrooms we get a lot of small families anywhere between like four and six people um you know they bring the pet uh and those two bedrooms are like packed like from Spring until fall uh it is really hard to book a two bedroom yeah so I bet yeah I'll have I'll have family like hey um can we you know we want to rent one and uh I'm sorry it's taken yeah I got a one bedroom for you right but but yeah so Studios and two bedrooms all day long now what I will say on the um because we do have um well we had a couple bigger properties um and from my experience with those properties um the four bedrooms and right now we have a is technically a five bedroom but we kind of made it a six um that one does phenomenal uh during hot season um uh the the issue is you know you got to get creative during slow season but um in High season oh my God the numbers are are crazy so um it also it just depends on like you know like we said it depends on the the location in the area but um Studios definitely that's awesome and then do you adjust the pricing at all when you have a tenant who wants to stay for a midterm link so let's say that someone someone wants to come for a 30-day or more stay does that affect your pricing at all because you might not have those vacancies or you might not have all the turnovers how do you guys kind of adjust for that if you do yeah so great great question uh because we so this is what this this is what I love about um having a ton of units in the same apartment complex so sometimes we play mix and like we'll play Tetris um and the guests can't see this obviously but you know we can see it internally so when we get those um you know those guests that want to stay for the however many nights um it is easy for us to just go and maybe move a couple reservations around and then we can create a window of 45 days 60 days whatever it may be um if that is if that is not already um you know that unit is already or not really yeah as far as pricing we do use Dynamic price and we use price labs to be specific uh price Labs is phenomenal um now what I will say is not to like set it and forget it you still want to kind of monitor that um it really helps you maximize Revenue but uh for a long term um stays we do give a a nice low discount um because you know we we we want to uh we want to secure that reservation first right but we also know that person to come back you know we want them to think about us and we just want to create the best experience so um if we can provide a little discount a little discount can go a long way so absolutely absolutely so Jeremy I've seen you have a couple really cool systems in place at your complex uh you've got noise aware and exterior cameras tell us about both of those yes yes yes so noise aware we've been rocking with noise aware from day one shout out to noise aware uh we I mean since literally since like 2018 um that noise aware alone has saved us um it's probably saved our business uh to be to be honest yes yes yes so noise aware alone we owe you so much thank you um and then also yes we we do have a um we do have external cameras on the properties before we move on to the external cameras I'm not familiar with noise aware so what is it and how does it work oh absolutely so noise aware is basically it's a noise monitoring software um it does not like record you know conversations or anything like that but it does um you know monitor the noise decibels inside of a unit so uh what that means is you know I can be remote here in Charlotte North Carolina and you know I have units in Texas you know I can log in to my computer and and I can go to my noiseware um app and I can check and I can listen in and see or excuse me not listening but I can check the the noise levels in that particular unit like anywhere in the world right so I'll know hey if a party is going on I'll know that um if so where where does it live is it a little box inside each home is it outside the home where is it it's literally like a little it may be like the size of probably smaller than your cell phone okay then what you do is you just plug that into the wall um then you know you go on your app a few little steps and then you know you're rocking and rolling uh does it notify you if somebody unplugs it absolutely yes it does okay yeah so yes it it notifies you uh if someone unplugs it someone tampers with it um if the noise level reach reaches over a certain decibel so that way it gives you peace of mind okay you know if something's going on in my unit I'm going to know I'm going to get alert um and then then I can take the appropriate you know the appropriate actions for you know whatever's going on so I love noise aware I love that it's probably more important for a short term than is for midterm my guess is you know you probably don't get triggered much on the midterm but short term I would definitely want to know what's going on I think it depends on your area of country of the country too if you have midterm tenants and you know you're in a more Party City than maybe something that you want to have or if it becomes a problem you could always tell if you're arbitraging you could tell the property owner you know here are the steps I've taken so it's a cool a good tool to have in your tool belt even if you don't use it right away but just to know about and have right right then what about the external cameras yeah so um the external camera so we definitely have um doorbell cameras on each of our um right outside of Easter Island units um the reason why we have doorbell cameras um is because we are able to that allows us to um monitor who comes in and out of the unit um so you know in addition to the noise aware um you know let's just say noise aware alert says that a party is going on or there's too much noise in this unit right now I can go back in addition to that I can check my cameras and I can see okay how many people are in this unit okay now now I can see that there are 39 people in a in a studio apartment um I'm just kidding but I can see you know uh the exact number of people and then if they're they are violating my house rules or you know they're that they're over capacity for that unit then I can take the you know the actions needed to to get them out of there now I'll also add that we have um a security feature um that comes along with the doorbell camera um that is you know we're able to uh pretty much um uh arm or um alert the authorities if needed um to help assist you know uh getting removing uh unruly guests right yeah if that is needed um and the reason why I think that's so important because again um I think I have a phenomenal team I love my team um and I don't want to put them in any sort of a situation um that is you know that they don't want to be in so that feature also kind of you know gives them some backup um to you know remove individuals that you know may may not may need their reservation terminated now Kelly Do you have do you have doorbell cameras on any of your properties because I do not but I know that a lot of people use it as a good way to kind of keep an eye on your property without invading the privacy of your tenant and a lot of people will even give if it's a midterm renter give that tenant temporary access to the doorbell camera which you can do through most of the apps you can grant you know temporary access so that since they're in a brand new place they can also feel extra secure by having you know access to that camera I invested in that yet but I I it is again something that I've said okay well if we discover the need to do that I think it would be easy enough and useful yeah now Dave and I are pretty old school but Jeremy you're making me think of one of my favorite comedians have y'all heard of Angela Johnson she's hilarious one of her she says he gots to go yeah you're making me want to go back and watch it now she's funny but I just have one more question for this episode at which I read on your Furnished Finder profile Jeremy that you are a huge sports fan so what is your go-to like Sport and have you had any professional athletes stay with you um so wow yes yes I'm a huge sports fan um basketball is is my is is my thing um you know I like to see first oh I uh oh my God that's probably terrible no I I try to I try to go for you know the home team uh which technically would be Spurs and you know I physically live in Charlotte so you know really it would be Hornets but I I can't even go for the harness I'm a I'm a huge earwag I'm not gonna lie to you I'm really a bandwagon so I I right now warriors on my team you know until Steph you know it is no longer planned then then maybe I'll go back to the horn and so the Spurs would um but yeah no no to answer your question yes we've had athletes come and stay with us um not from the Spurs but we have had um actually I'm lying to you we have had someone come stay from the Spurs um we've also had someone come and stay from I want to say the Tennessee Titans I don't know what they were doing Antonio but they did think of us so you know I can't complain um and I want to say we had someone else um was a soccer player coming today so we've had a few a few different athletes come so yeah what's one of the main like we always talk about different tenant pools for midterm rentals and you often hear traveling medical professionals you hear uh you know corporate Travelers relocations things like that but the the sports industry is catching on as well and so we've had we've interviewed uh and talked with quite a few landlords that are starting to have more of a sports Focus uh for those coming to stay in their midterm rentals which is awesome uh well this has been a phenomenal episode and Jeremy is there anything you'd like to share with our audience uh as we wrap up our conversation best ways to get a hold of you if they want to book Stay Nixon or anything like that yeah absolutely so you can check us out at www.statenickson.com um now if you just want to see what I'm up to um you can you can check me out on Instagram uh Jeremy X Nixon uh and um and yeah um if you are ever in San Antonio definitely come and stay with us um we're right right across from the Riverwalk uh you won't be disappointed and uh we're excited to host you I'm gonna have to remember that since I'm only like two hours away I'm okay I'm gonna make an official tour I think we might be in San Antonio this this summer so yeah I'll have to reach out to you yeah absolutely awesome come on come on down well thanks for being with us guys y'all can catch us every week uh on with a new episode of the landlord Diaries and if you are loving our show please don't forget to like subscribe and leave those five star reviews on Apple podcast Spotify or shoot us over a comment on YouTube We Love responding have a great day everyone [Music] thank you