Tammy Barnes has three mid-term rentals in her portfolio, two of which she owns and one of which she manages for her parents. Her mid-term rental journey began when she and her husband sold their home during COVID. When it came time to move out of their Southern California home, they were astounded to learn that moving companies charged between $15,000 and $20,000. They decided that it was not worth the cost, so they decided to simply leave the furniture and rent their home furnished. They advertised it online and immediately received inquiries from insurance companies looking to house their clients who had been displaced from their homes and were willing to pay much more than Tammy had anticipated.
Primarily Working with Insurance Companies
Tammy Barnes has strategically shifted her rental focus to exclusively cater to insurance-related tenants, which has proven to be a highly rewarding decision. Tammy, on the other hand, doesn't use any specific tactics to actively attract insurance companies; instead, they contact her organically through her Furnished Finder listings. The primary reason for this demand is Tammy's rental properties' inherent appeal, which effortlessly meets the criteria sought by insurance companies.
Tammy's properties' size and layout are important factors in the influx of insurance company inquiries. Her properties, which have three or four bedrooms, provide ample space for families who have been displaced from their own homes due to unforeseen events. These spacious accommodations provide a comfortable and convenient living environment, making them an excellent choice for temporary housing for families.
Furthermore, Tammy's strategic choice of location is critical to attracting insurance-related tenants. Her rental properties, which are located in desirable and commutable suburbs of densely populated cities in Southern California, provide the ideal balance of accessibility and peace. Families can easily access their workplaces, schools, and other necessities while enjoying the peace and safety of suburban living. Tammy's rentals are an appealing option for insurance companies looking for suitable accommodations for their displaced clients due to this desirable combination of factors.
Why So Many Insurance Related Tenants in Southern California?
Surprisingly, nearly all of her insurance tenants come to her because their homes have flooded. Tammy observes that southern California has a large number of older homes, and as a result, the plumbing is starting to fail. Burst pipes flood these homes with a foot or two of water, rendering them uninhabitable for months while clean-up and repair work are completed.
Avoiding Vacation Cities
Tammy suggests avoiding popular vacation spots for mid-term rental properties due to the abundance of other short-term rentals. Many short-term landlords are transitioning to mid-term rentals due to changing regulations in these areas as well as stiff competition. As a result, the supply and demand ratio is changing, which lowers the rents of mid-term rentals as well.
Her two properties are approximately 25 and 50 miles from city centers, respectively. The rent for these two properties ranges from $7,500 to $10,000 per month. Her third property, which is in a popular vacation city and is also her largest and most well-appointed home, can be rented for $12,000 per month. While that number may appear staggering to many landlords, Tammy believes it should be higher, but because there are so many other comparable mid-term rental homes in the area, the competition is bringing the price down.
The Hidden Advantage of HOAs
While many mid-term rental investors avoid properties governed by Homeowners Associations (HOAs), Tammy believes they provide some valuable benefits that should not be overlooked. One of the most significant benefits of HOAs is the variety of amenities and enhanced security they provide. Tammy's mid-term rental homes are in gated communities with 24-hour security, swimming pools, basketball and tennis courts, and a fully equipped gym. These features are in high demand in Southern California, where gated communities with such amenities are scarce. When families are looking for a temporary home while their own is being repaired, the appeal of Tammy's rentals skyrockets due to the exclusive benefits that these gated communities provide.
Despite the fact that HOAs require guests to register with the association, Tammy assures that it is a minor inconvenience that poses no significant challenges to her business. In fact, most HOAs welcome mid-term rentals because they avoid the rapid turnover and party-related risks associated with short-term rentals. Tammy is able to operate smoothly within the HOA guidelines, maintaining a harmonious relationship while reaping the benefits of enhanced security and desirable amenities that attract discerning families seeking a temporary haven.
Securing Insurance Company Tenants
Tammy asks insurance companies, or more often, the third-party property searching companies that the insurance companies use, a variety of questions in order to better understand what they're looking for. She reveals that these third-party property search firms primarily use Furnished Finder. They avoid the short-term rental websites like Airbnb or Vrbo.
Professional photographs are essential for attracting potential tenants and maximizing the success of mid-term rental properties. High-quality images have the power to captivate viewers and differentiate your rental listing from the competition in today's digital age, where first impressions are often made in a matter of seconds.
First and foremost, professional photographs present your mid-term rental property in the best light possible. Skilled photographers know how to capture the most appealing angles, use proper lighting techniques, and highlight the property's unique features. They are skilled at creating visually stunning images that elicit emotions and entice viewers to explore further. Well-composed photographs can make even the smallest home appear more appealing and spacious while also conveying the overall ambiance and style.
Professional photographs also help to build trust and credibility with potential tenants. Prospective renters gain confidence in the authenticity and professionalism of the rental listing when they are presented with well-executed images. They can imagine themselves living in the space and are reassured that the property is well-kept and well-cared for. Low-quality or poorly composed images, on the other hand, can give the impression of an unprofessional and less desirable rental, resulting in a loss of interest from potential tenants.
Professional photographs have a positive impact on your marketing efforts in addition to attracting tenants. To ensure you're securing tenants quickly and consistently, eye-catching visuals are more likely to capture attention. They increase the likelihood of click-throughs and inquiries, resulting in a higher conversion rate. Furthermore, well-curated photographs can be used across multiple marketing channels, such as social media platforms, websites, and promotional materials, reinforcing a consistent and visually appealing brand image for your short-term rental company.
Tammy’s Advice for Anyone Considering Mid-Term Rentals
Tammy, who is naturally risk-averse, encourages anyone thinking about mid-term rentals to come right in. Do some research to calm your nerves, but making big moves followed by small corrections is often what's required to succeed. Don't let analysis-paralysis take over.
Even if you have a vacant property, posting it on Furnished Finder, including the unfurnished pictures but with a note that it is in the process of being furnished, is an easy way to gauge interest in your property and demand in your area. Post your expected availability date and see what kind of response you get.
Also, be sure to utilize the Mid-Term Housing Demand Statistics (opens in new tab)page for your city available on Furnished Finder. While this page focuses on Travel Nurse demand in your area, it still compiles data regarding what kinds of properties are being searched for, the price ranges, and the number of listings that are currently meeting that demand.
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