For updates and photos: http://reistart.com/biFEe

Over the past year, we’ve been working on ways to increase rent and lower expenses to boost your property and portfolio performance and cash flow.

In metro Atlanta, we’ve partnered with one of our long-term associates to offer a new, more lucrative leasing program.

Instead of leasing as a traditional long-term rental, we suggest listing it as a mid-term rental (MTR, also known as a hybrid rental).

In an MTR, the focus is on leasing to people who need a place to stay for more than a month but less than six months. Examples include homeowners dealing with insurance incidents who need temporary housing (often paid for by insurance) and film and TV crews in Atlanta who need accommodations for several months.

The MTR model shares some similarities with short-term rentals (like Airbnb) but is different in many ways.

For this property / general notes / things to know and address 

1. It is owned by a bank or fund. It has been listed for 98 days – cash offer (of delayed financing) would possibly work better.
2. From the photos, it looks rent ready. The kitchen looks wonky. Likely needs new appliances. 
3. Wood-burning stove in the living room would be great and efficient for a family. Probably a liability for renters. 
4. LVP throughout is really nice!
5. Sunroom needs some TLC.
6. Laundry room looks weird – will need to be addressed
7. Backyard is meh.
8. LTR: $1600-1800. Numbers are tight. 

We ran an initial evaluation and believe this house could be used as a mid-term rental (MTR). Here are some of our financial assumptions:

• • Current traditional lease market rent: $1850

• • Average MTR lease: $4275

Here’s an initial analysis

Note: We made some assumptions on certain expenses, since we don’t have all the figures. However, we believe you will still benefit significantly from this program.

Property & purchasing details:

Analysis/Comparison – Long-term vs Mid-term

Before you get excited about these figures, there are a few important things to understand:

• In the MTR model, you will be paying for utilities.
• The management fee is in the form of a revenue share, and it is based on success and there is no leasing fee.
• This model incentivizes the local partner to maximize the property’s rentability and minimize downtime, thereby maximizing its income potential.
• Similar to short-term rentals, the house will need to be converted into an MTR. This requires an initial investment to make the house ready for a family to live in for several months, bringing only their clothes and suitcases.

Overall, while the MTR model offers higher potential rent, it also involves additional actions and initial costs.

Next Steps

• • Let us know if you have any questions or if you’d like to discuss this program further.

• • Once you decide to move forward with this direction, let us know, there are a few more steps needed to be taken before making an offer.

• • We will do everything we can to minimize any downtime, prep your property quickly, and put it into the MTR pool.

You can read and learn more about MTRs here!