Short Term Rental (STR) Appraisals: the first step to demystifying STR economics

By: Scott Mears - Aspire PRO Enterprises

Every short-term rental (STR) property management company’s main reason for being is the statement (backed by experience) that a professionally managed property achieves higher returns than long-term rentals (and even the returns of do-it-yourself managers of STRs).

When Aspire PRO Enterprises (Aspire) trialled its system on Victoria Apartments, Hamilton, we used cutting edge software to assess its feasibility.  Then, we transformed the apartment into a luxury pad through thoughtful staging techniques and upmarket furniture, creating a premium STR.

When advertised for rent, the property has achieved occupancy levels of 89% - 30% higher than expected and a Gross Yield (which is calculated by dividing the annual rental income by the property’s value) of 8.7% versus 3.4% as projected by Aspire for the property being used as a long-term rental (LTR) and around 20% higher than budgeted as a STR.

2/391 Victoria St before Aspire.

2/391 Victoria St, Hamilton as it looks today.

Aspire believes we can replicate these fantastic results for your property. So, how can you, the reader, get a handle on STR economics for your property or properties?

The answer, and first step, is to get a STR Appraisal.

The Appraisal, which is free of charge, is about 5 pages in length and details the likely occupancy rate, average daily rate and annual income for a property as if it was run as a STR.  

Once received, it is a short step to calculate the Gross Yield and check that against LTR estimates (most Real Estate Agents offer free LTR appraisals) for the property (or properties), or your current annual revenue if you are currently renting your property(ies) as a LTR.

So, what are you waiting for? Request a Free Appraisal now!