Mid-term rentals
The rental management is more intricate than people think it is when trying to raise the net operating income (NOI) of a multifamily property. There is many ways (3) to earn rental income. The one that most people know of and do is long term rentals which happens when renting an apartment for 12 months. This is common, it answers a very common necessity, requires very little management efforts and always has a great amount of potential tenants. This is the way financial institutions value a property, by seeing the yearly rental income, deducting all expenses, calculating the capitalization rate and the net operating income. This is the most common way to proceed but the least profitable way. A way that is gaining popularity is short-term rentals. This rental type is often more lucrative than yearly rentals but comes with a lot more work, management and expenses. The apartments must be fully furnished, cleaned after every guests, managed on booking platforms and the price wil...