Can you and your residents benefit from allowing short-term rentals (STRs) in multi-family buildings? So far, there's been endless debate over the pros and cons, but little hard data.
That's why we're excited to share a comprehensive case study based on real-world data. Thanks to Pillow Homes and two Denver communities, we were able to analyze numbers and present our findings.
Key highlights of the study include:
- The communities experienced participation rates from 19% to 32% of their residents
- Those residents participating saw net average income of $835 and $1,075 per month which helped them offset the growing cost of rent in an urban environment
- The communities received a monthly revenue share of $112 and $144 per participating resident which went right to the bottom line
- Through Craigslist advertising promoting the communities’ STR-friendly policies, they received a combined 16 incremental leases (the stabilized community was on the platform for 17 months and the lease-up had only its first 50 units available over 6 months)
- Using a 6% cap rate, we estimated the stabilized community’s value increased $1.3M from the incremental leasing and revenue while the lease-up increased its value just over $450K (on its first 50 units)
Download Allowing Short-term Rentals in Multi-family Buildings: The Benefits and the Risks Based on Real-world Data to find out if STR could work for you!