When we started buying real estate, we managed our own units. This allowed us to scale very quickly. Short term rentals were on our radar but always seemed like too much work. However, an opportunity presented itself to try a short term rental.
We had a parcel in Seattle that we were permitting for a development project. Making that property a short term rental offered the flexibility we needed, and the security that the guest would not fall under long term tenant laws. The laws in Seattle (where we are based) make eviction difficult if the tenant chooses to become a squatter.
This protection was critical so we could guarantee our development project would not be delayed. Long term rents for this house were about $2,000 per month. We contacted a large short term rental management company because we didn’t have the time, training, or personnel to handle cleanings, guest communications, or overall management of a short term rental.
While working with said short term rental company, we grossed around $3,000 per month in revenue. After nine months of this, we realized there were gaps in the company’s services. We believed there was more we could do in terms of cleaning standards, booking management, and revenue possibilities.
After assuming management ourselves, we grossed $6,000-$8,000 per month--three to four times more than what long term rents grossed. This was a light bulb moment. We gradually began to switch our portfolio from long term rentals to short term rentals and saw similar results. One property saw an increase of 4X revenue.
As the number of short term rentals grew, so too did our need for a robust management team. We hired cleaners and managers, and also made a huge investment into technology. We pioneered a dynamic pricing tool called SPARK, an algorithm that harnesses market data to maximize RevPAR and ADR. SPARK ensures we don’t lose money from unbooked nights by instantly adjusting nightly rates to make them appealing and competitive to potential guests.
As we grew other investors asked us about managing their units. We wanted to help them make more money and grow their portfolio faster so we formed Stay Flourish. Our goal is to increase revenue and reduce headaches for you, the hungry real estate investor.
What distinguishes us?
We make a guarantee that we can make you more money than a long term rental. We recognize that long term rentals give peace of mind and a “locked in” tenant, but in doing so you also forgo a massive potential ROI upside. We ensure that your properties gross at least what you would be making on a long term rental, while opening up the possibility for significantly higher returns.
We go above and beyond the standard property management company. For example, if the sink drain leaks, we aren't going to call a plumber, we will fix it with our in-house maintenance techs. We cover $500 of maintenance work and $1,000 of furniture damage for FREE. We also have professionally trained cleaners on the ground dedicated to quality, timeliness, and consistency.
We have exclusive access to Flourish Design and Build, our sister company, for interior design and remodeling work. They can transform any space into an unforgettable experience and work with the assumption that beauty changes those who come in contact with it. Working with them allows us to keep everything in-house, ensuring the highest level of quality and the lowest prices.
As investors, we know what it's like to look at a closing statement after purchasing a property and see a litany of costs and random doc fees. We don't think this is how business should be done. We pay for all cleaning and restocking costs, and we don't buy cheap soap, because we know that quality and a luxurious experience will make more revenue in the long run.
If you have a multifamily building you may need to show a stabilized NOI on your T12 to refi with Fanny/Freddy or institutional lenders. We are happy to work with you and develop a revenue distribution protocol that sets you up for lending success in the future.
And none of this is lip service. Companies often make big promises but come up short-handed when it’s time to deliver. Our solution is to have all the properties in a blind management pool. Our management team does not make a distinction between the units we own and the units you own. This guarantees that you will get the highest level of quality and service.
Give us a call, and let us make you more money.
Still on the fence about short term rentals or using a short term rental manager? Check out these blog posts for more insights into the industry: