Short-term rentals are an ideal complement to working remotely
The Covid-19 pandemic and the emergence of short-term rental companies like Airbnb have given rise to a new generation of real estate. This new wave is blurring the line between hotels and homes, prompting developments designed from the ground up to serve a dual purpose. On the one hand, they meet the needs of buyers looking for a place to escape in a sunny climate like that of Miami. On the other hand, they satisfy the desire of these and others to generate passive income by renting out the residences when they are not there.
Among the companies that stand out in the short-term rental market is WhyHotel, an alternative hotel service provider that creates pop-up hotels in places like Miami. The company’s CEO and founder, Jason Fudin, considers the movement of work from anywhere to be one of the most significant forces impacting the use of real estate in a generation.
“We’ve seen the first effects first hand with an increased demand for short-term accommodation,” Fudin said. “Our apartment-style hotels have significantly outperformed traditional hotels during Covid, driven primarily by strong occupancy of over 85% in the midst of the pandemic.
“Consumers are demanding short-term accommodations that combine home and hospitality, especially as work from anywhere continues. For example, people travel for work and stay for pleasure, especially in Miami, New York and Nashville. And they seek the comforts of an apartment as well as hospitality-type services to support that lifestyle.
Flexible living allows residents to have their cake while eating it, says Nicholas Perez, vice president of Related Group, developer of District 225 Residences Miami and Crosby Miami Worldcenter. Many buyers of District 225 Residences Miami and Crosby Miami Worldcenter have arrived in the Magic City looking for an escape from winter and/or high-tax states. They enjoy their residences in Miami, but also enjoy the passive income the units generate when they return home to visit family.
“We’ve also seen many locals, especially a new generation of rising young professionals, as well as international buyers, jump at the opportunity to own property in one of Miami’s fastest growing neighborhoods. : Downtown Miami,” says Perez. “Some will choose to live in their units most of the time, like their counterparts in the North East, while others will see it more as an opportunity to get into the thriving short-term rental business without any of the challenges associated with independent management. these types of assets.
People who were highly mobile before the pandemic have become even more nomadic in its wake, adds Harvey Hernandez, CEO of Newgard Development Group, developer of LOFTY Brickell and Natiivo Miami and Austin. Remote work roles have also encouraged mobility, which has sparked an unprecedented sense of freedom to experiment with new and different lifestyles and cities, he adds. “This freedom gives buyers the unique opportunity to have their assets work for them when they want and as much as they want while they’re away,” Hernandez says.
“There is a clear demand for flexible living and ownership in cities such as Miami, Austin and others, which have proven to be business hubs and incubators alongside world-class entertainment, rich culture and award-winning restaurants.”
Asked if some short-term renters have been known to stay longer, Hernandez says yes. It has seen an increase in length of stays for short-term rentals, reflected in what it calls “huge demand” for stays of 30 days and longer, he says.
Soon other developments expressly designed for short-term rentals are sure to spring up, providing a bigger cake for those who want their cake and eat it too.