Short-Term Rentals and Crowdfunding are two of the biggest real estate developments in recent history. Frank Valencia launched platforms to help investors take advantage of both through Bongo Property Management and Bongo Capital. Bongo PM manages over 4,000 short term rental units across the United States, Latin America, Europe, and Asia. Bongo Capital is the leading investment firm specialized in short term rental developments globally. On today’s episode, Frank shares info about domestic and international markets for short term rentals, his unique crowdfunding approach, and regulation differences across various markets.
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Key Market Insights
- Realized business opportunity after staying in an Airbnb
- Vacation rentals have been around for a long-time – think beach house in California that attracts tourists
- Short term rentals are more focused in areas with year-round tourism – San Francisco, Chicago
- Airbnb became the name brand for short term rentals
- Corporate housing focuses on professionals looking for 30-90 days
- Focus markets: Texas, Florida, New Mexico
- Work with homeowners, investors, and funds
- Nightly price is a key performance indicator to review for projections
- Automated as much as possible for day to day operations
- Permits and restrictive bylaws are challenging in cities like New York
- Key Risk: Legislation can change quickly
- Some international markets may not have permits or taxes
- Work with the legislators in the cities and have been in town homes
- Homeowner associations are restrictive to short term rentals
- Include noise monitoring devices at each property
- In 2018, over 700,000 reservations in the US, only four incidents of damage and theft
- Starting to work with developers during the lease-up phase
- Europe has a high buy-in cost, Sweden is more of a cash flow market
- Yucatan peninsula, Cancun and Tulum are great for international
- Partnerships in profits, equity and – $5,000 US to get started
- Biggest mistake people make is underestimating the time-commitment
- Guests have higher expectations, on par with hotel customer service
- Keypads are critical to automate the process – normally less than $300
Bull’s Eye Tips:
Winning Your Market: Be Dedicated
Tracking Market Changes: Be as Active on Forums, Read Articles
Daily Habit: 4 am Emails
Resources:
Best Business Books:
The 4-Hour Workweek by Tim Ferris
Digital Resources
Tweet This: “In 2018, there were over 700,000 reservations in the US and only four incidents of damage and theft.”
Connect with Frank:
Website: BongoPM.com
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