AUSTIN – (Realty News Report) -Short-Term Rentals (think Airbnb or WhyHotel) are a hot topic in the multifamily industry.
The mechanics of incorporating the STR (short-term rental) niche into an apartment complex is complicated. But it certainly makes sense when a new urban apartment project is in its initial lease-up mode.
“There’s certainly a feeling of things warming up”, says Omer Rabin, Managing Director, Americas, of property management platform Guesty. “The relative softening in some markets in the USA in terms of rental prices pushes many complex owners to put some of their inventory on STR and dip their toes — on average, an owner will see 30% more revenue per unit by renting it on a short term basis which is very meaningful”.
But there is risk. Will the regular long-term tenant with a one-year lease appreciate having transient hotel-like guests coming and going at all hours?
Will major REITs take a deep dive into the niche?
Maybe or maybe not, says Sue Ansel, CEO of Gables Residential, a major multifamily firm.
“We’re still trying to determine how the renter will respond,” Ansel said, in her on-stage comments at the Hanley Wood’s HIVE conference in Austin last week.
Houston-based Camden Property Trust has reached an agreement with WhyHotel to operate a “pop-up hotel” in Camden’s new 21-story, 271-unit apartment tower at 1515 Austin in downtown Houston. WhyHotel will use 100 apartment units as public hotel rooms until the end of 2020, while the Camden project is in initial lease-up. Guests of WhyHotel units can lease a unit for one night, or as long as three months.
At the Hive conference in Austin, Ansel was being interviewed on-stage by Diana Olick of CNBC.
Dec. 12, 2019 Realty News Report Copyright 2019
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